Question 1

A deficit BOP exists, when -----------------

Accepted Answer

A deficit Balance of Payments (BOP) occurs when the total receipts from abroad are less than the total payments to abroad, indicating that the country is spending more on foreign trade than it is earning.

Question 2

IBRD is also known as ---------------

Accepted Answer

The International Bank for Reconstruction and Development (IBRD) is better known as the World Bank.

Question 3

Bretton wood twins are ------------------

Accepted Answer

C

Question 4

UNCTAD was constituted in -----------

Accepted Answer

UNCTAD (United Nations Conference on Trade and Development) was constituted in 1964 to promote the integration of developing countries into the world economy.

Question 5

WTO came into existence with a membership of ------------------

Accepted Answer

The answer of WTO came into existence with a membership...

Question 6

The Indian Currency code used in foreign exchange market is

Accepted Answer

The Indian Currency code used in the foreign exchange market is INR, which stands for Indian Rupee.

Question 7

--------------- takes into account only merchandize exports and imports

Accepted Answer

BOT (Balance of Trade) specifically refers to the difference between a country's exports and imports of goods, not including services, thus focusing solely on merchandise.

Question 8

Which is known as paper gold

Accepted Answer

SDRs (Special Drawing Rights) are referred to as paper gold because they are an international type of monetary reserve currency created by the International Monetary Fund (IMF) to supplement its member countries' official reserves.

Question 9

Increase in the value of a currency is known as --------------

Accepted Answer

Appreciation refers to the increase in the value of a currency relative to another currency in the foreign exchange market. This means that the currency can buy more foreign currency than before, indicating its strengthened position.

Question 10

Decrease in the value of a currency is known as -------------

Accepted Answer

Depreciation refers to the decrease in the value of a currency relative to another currency in a floating exchange rate system. This can happen due to various factors such as inflation, changes in interest rates, or differences in economic performance between countries.

Question 11

IMF created buffer stock financing facility in -----------

Accepted Answer

The IMF created the Buffer Stock Financing Facility in 1969 to help member countries finance their contributions to international buffer stocks of primary products, aiming to stabilize the prices of these commodities.

Question 12

SDRs are popularly known as ------------------

Accepted Answer

SDRs, or Special Drawing Rights, are referred to as "Paper gold" because they serve as an international reserve asset without being a physical currency or precious metal, but they hold value and can be exchanged among governments and the IMF.

Question 13

IDA was established in -------------

Accepted Answer

The International Development Association (IDA) was established in 1960 to provide soft loans to the world's poorest countries.

Question 14

The President of IBRD is the head of ---------------

Accepted Answer

The President of the International Bank for Reconstruction and Development (IBRD) is also the head of the International Development Association (IDA), as both are part of the World Bank Group.

Question 15

The membership of the IDA is open to all membership of -----------

Accepted Answer

The International Development Association (IDA) is open to members of the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group.

Question 16

Part I members of IDA are called -------------------

Accepted Answer

Part I members of IDA are called G24 members.

Question 17

IFC was established in -------------

Accepted Answer

The International Finance Corporation (IFC) was established in 1956 to support the private sector in developing countries.

Question 18

IDA loans are known as -------------

Accepted Answer

IDA credits are the correct term for loans provided by the International Development Association (IDA), which is a part of the World Bank that helps the world’s poorest countries.

Question 19

IDA grants loans to those projects which are not financed by -------

Accepted Answer

The International Development Association (IDA) is part of the World Bank that helps the world’s poorest countries. It grants loans to projects that are not financed by the International Bank for Reconstruction and Development (IBRD), another part of the World Bank Group, due to the borrowers' inability to secure loans on the terms provided by the IBRD.

Question 20

Which is the largest financial market in the world

Accepted Answer

The foreign exchange market (Forex, FX, or currency market) is the largest financial market in the world, with a daily trading volume exceeding $6 trillion, facilitating currency conversion for international trade and investments.

Quiz 3: International Finance and Trade