CSS Economics Solved Mcqs - Set 14

1)   Utility is most closely related to the term:

a. Useful
b. Useless
c. Necessary
d. Satisfaction
Answer  Explanation 

ANSWER: Satisfaction

Explanation:
No explanation is available for this question!


2)   Demand curve slopes downward because of the law of:

a. Consumer equilibrium
b. Utility maximisation
c. Utility minimisation
d. Diminishing marginal utility
Answer  Explanation 

ANSWER: Diminishing marginal utility

Explanation:
No explanation is available for this question!


3)   A consumer's spending is restricted because of:

a. Marginal utility
b. Budget constraint
c. Demand curve
d. Utility maximisation
Answer  Explanation 

ANSWER: Budget constraint

Explanation:
No explanation is available for this question!


4)   Law of substitution is another name for law of:

a. Law of Diminishing MU
b. Law of Equi-MU
c. Law of Demand
d. Satisfaction
Answer  Explanation 

ANSWER: Law of Equi-MU

Explanation:
No explanation is available for this question!


5)   Law of Equi-marginal Utlity is a law of:

a. Production of wealth
b. Consumption of wealth
c. Distribution of wealth
d. Exchange of wealth
Answer  Explanation 

ANSWER: Consumption of wealth

Explanation:
No explanation is available for this question!


6)   When MU is positive, TU:

a. Increases
b. Decreases
c. Remains constant
d. Is highest
Answer  Explanation 

ANSWER: Increases

Explanation:
No explanation is available for this question!


7)   Diminishing marginal utility is the basis of:

a. Law of supply
b. Law of demand
c. Law of returns
d. None of the above
Answer  Explanation 

ANSWER: Law of demand

Explanation:
No explanation is available for this question!


8)   When MU = 0, TU is:

a. Minimum
b. Maximum
c. Laws of return
d. None of the above
Answer  Explanation 

ANSWER: Maximum

Explanation:
No explanation is available for this question!


9)   Quality of a commodity that satisfies some human want or need is called:

a. Service
b. Demand
c. Utility
d. Efficiency
Answer  Explanation 

ANSWER: Utility

Explanation:
No explanation is available for this question!


10)   Indifference curves are convex to the origin because:

a. Two goods are perfect substitutes
b. Two goods are imperfect substitutes
c. Two goods are perfect complementary goods
d. None of the above
Answer  Explanation 

ANSWER: Two goods are imperfect substitutes

Explanation:
No explanation is available for this question!


11)   When did the international Monetary Fund (IMF) begin its operations?

a. 1945
b. 1946
c. 1947
d. 1948
Answer  Explanation 

ANSWER: 1946

Explanation:
No explanation is available for this question!


12)   What is the present total number of members of the IMF?

a. 135
b. 142
c. 148
d. 155
Answer  Explanation 

ANSWER: 155

Explanation:
No explanation is available for this question!


13)   Where are the headquarters of the IMF?

a. Paris
b. Geneva
c. New York
d. Washington, DC
Answer  Explanation 

ANSWER: Washington, DC

Explanation:
No explanation is available for this question!


14)   What rate of interest does the IMF charge for providing additional confessional balance of payments assistance, under the structural adjustment facility, to low income countries?

a. 2%
b. 1.50%
c. 1%
d. 0.50%
Answer  Explanation 

ANSWER: 0.50%

Explanation:
No explanation is available for this question!


15)   When was the first amendment to the Articles of the IMF made which led to the creation of the Special Drawing Rights (SDR) facility?

a. 1969
b. 1971
c. 1975
d. 1978
Answer  Explanation 

ANSWER: 1969

Explanation:
No explanation is available for this question!


16)   Which one of the following is not a function of the IMF?

a. The promote international monetary cooperation
b. To promote exchange stability
c. To promote a multilateral trading system
d. To promote the development of backward countries
Answer  Explanation 

ANSWER: To promote the development of backward countries

Explanation:
No explanation is available for this question!


17)   The IMF institute conducts courses, covering a wide spectrum of subjects in financial analysis and policy making for officials from member in Washington. When was it established?

a. 1962
b. 1964
c. 1966
d. 1968
Answer  Explanation 

ANSWER: 1964

Explanation:
No explanation is available for this question!


18)   The IMF approves the creation of a given amount of new SDRs. These SDRs are distributed among the participating countries on the basis of their:

a. Needs
b. Share in world trade
c. Quotas in the IMF
d. Balance of payments deficits
Answer  Explanation 

ANSWER: Quotas in the IMF

Explanation:
No explanation is available for this question!


19)   Which of the following currencies is at present not included in the valuation of the SDRs?

a. Pound sterling
b. Yen
c. Mark
d. Dinar
Answer  Explanation 

ANSWER: Dinar

Explanation:
No explanation is available for this question!


20)   In 1974 the IMF changed the basis of valuation of the SDR by calculating the value of the SDR from a basket of currencies of several major countries. What was the number of currencies included in the valuation of the SDR in 1974?

a. 16
b. 14
c. 12
d. 10
Answer  Explanation 

ANSWER: 16

Explanation:
No explanation is available for this question!


21)   Where are the headquarters of the International Labour Organisation (ILO)?

a. Rome
b. Geneva
c. London
d. New York
Answer  Explanation 

ANSWER: Geneva

Explanation:
No explanation is available for this question!


22)   When was the ILO established as an autonomous part of the League of Nations?

a. 1918
b. 1919
c. 1920
d. 1921
Answer  Explanation 

ANSWER: 1919

Explanation:
No explanation is available for this question!


23)   In which year was the ILO awarded the Nobel Peace Prize?

a. 1965
b. 1969
c. 1973
d. 1977
Answer  Explanation 

ANSWER: 1969

Explanation:
No explanation is available for this question!


24)   Which is the oldest organisation among the four?

a. ILO
b. FAO
c. WHO
d. IMF
Answer  Explanation 

ANSWER: ILO

Explanation:
No explanation is available for this question!


25)   What was the total number of member countries of the Colombo Plan for Cooperative Economic Development in South and South-East Asia which was set up in 1950?

a. Seven
b. Fifteen
c. Twenty
d. Twenty six
Answer  Explanation 

ANSWER: Twenty six

Explanation:
No explanation is available for this question!


26)   One of the following countries was not a member country of the Colombo Plan. Identify it:

a. India
b. Iran
c. USA
d. France
Answer  Explanation 

ANSWER: France

Explanation:
No explanation is available for this question!


27)   In which month of 1945 was the Food and Agriculture Organisation (FAO) set up?

a. August
b. September
c. October
d. November
Answer  Explanation 

ANSWER: October

Explanation:
No explanation is available for this question!


28)   In 1951 the FAO was transferred from its temporary headquarters in Washington, DC to:

a. Rome
b. New York
c. Ottawa
d. Geneva
Answer  Explanation 

ANSWER: Rome

Explanation:
No explanation is available for this question!


29)   The FAO come into formal being in 1945 with the signing of its constitution at a converence held in:

a. Washington, DC
b. Virginia
c. Quebec City
d. New York
Answer  Explanation 

ANSWER: Quebec City

Explanation:
No explanation is available for this question!


30)   An affiliate of the World Bank, the International Finance Corporation (IFC) became effective in:

a. 1956
b. 1960
c. 1962
d. 1964
Answer  Explanation 

ANSWER: 1956

Explanation:
No explanation is available for this question!


31)   The International Bank for Reconstruction and Development (IBRD), known as World Bank, began its operations in:

a. 1944
b. 1945
c. 1946
d. 1947
Answer  Explanation 

ANSWER: 1946

Explanation:
No explanation is available for this question!


32)   The main function of the World Bank is to:

a. Encourage capital investment for the reconstruction and development of its member countries
b. Grant long-term loans at little or no interest for projects in developing countries
c. Reduce trade barriers and establish rules of free trade
d. Facilitate poor countries to trade at concessional rates
Answer  Explanation 

ANSWER: Encourage capital investment for the reconstruction and development of its member countries

Explanation:
No explanation is available for this question!


33)   At what rate of interest does the World Bank provide loan to underdeveloped countries?

a. 7.50%
b. 6.50%
c. 5.50%
d. 4.50%
Answer  Explanation 

ANSWER: 5.50%

Explanation:
No explanation is available for this question!


34)   The highest percentage of the World Bank's total loans have been made for the development of:

a. Industry
b. Agriculture
c. Energy
d. Transport
Answer  Explanation 

ANSWER: Energy

Explanation:
No explanation is available for this question!


35)   The World Bank normally gives:

a. Short-term loans
b. Medium-term loans
c. Long-term loans
d. Medium and long-term Loans
Answer  Explanation 

ANSWER: Medium and long-term Loans

Explanation:
No explanation is available for this question!


36)   In which of the following ways does the World Bank give loans to members?

a. By granting or participating in direct loans out of its own funds
b. By granting loans out of funds raised in the market
c. By guaranteeing loans made by private investors through investment channels
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
No explanation is available for this question!


37)   How many governments have contributed to the capital of the World Bank?

a. 144
b. 150
c. 154
d. 158
Answer  Explanation 

ANSWER: 154

Explanation:
No explanation is available for this question!


38)   An affiliate of the World Bank, the International Development Association (IDA) was set up in:

a. 1950
b. 1956
c. 1960
d. 1962
Answer  Explanation 

ANSWER: 1960

Explanation:
No explanation is available for this question!


39)   Where are the headquarters of the IDA?

a. Washington, DC
b. London
c. Geneva
d. New York
Answer  Explanation 

ANSWER: Washington, DC

Explanation:
No explanation is available for this question!


40)   The IDA gives development credits to the developing countries for a period of at least:

a. 10 years
b. 15 years
c. 20 years
d. 25 years
Answer  Explanation 

ANSWER: 15 years

Explanation:
No explanation is available for this question!


41)   How many lending nations formed the 'Aid India Club' to help India out of her foreign exchange difficulties?

a. 14
b. 12
c. 10
d. 8
Answer  Explanation 

ANSWER: 12

Explanation:
No explanation is available for this question!


42)   Which of the following does not match?

a. Food and Agricultural Organisation - Rome
b. International Monetary Fund - Washingon, DC
c. United Nations Fund for Population Activities - New York
d. International Fund for Agriculaural Development Geneva
Answer  Explanation 

ANSWER: International Fund for Agriculaural Development Geneva

Explanation:
No explanation is available for this question!


43)   The main function of the IFC is to:

a. Make special efforts to promote international trade
b. Encourage the growth of productive private enterprises in less developed member countries
c. Assist those countries with an annual per capital gross national product of less than $520
d. Promote foreign investment
Answer  Explanation 

ANSWER: Encourage the growth of productive private enterprises in less developed member countries

Explanation:
No explanation is available for this question!


44)   Which financial institution is known as the 'soft loan window' from which underdeveloped countries can borrow in hard currencies?

a. IBRD
b. IFC
c. IDA
d. IMF
Answer  Explanation 

ANSWER: IDA

Explanation:
No explanation is available for this question!


45)   The main function of the IDA is to:

a. Achieve international cooperation in the field of economics
b. Make loans to less developed countries on flexible terms
c. Stabilize exchange rates
d. Promote foreign private investment by guarantees
Answer  Explanation 

ANSWER: Make loans to less developed countries on flexible terms

Explanation:
No explanation is available for this question!


46)   An international conference was held in Geneva in 1947 to consider matters relating to common trade and tariff policy which led to the establishment of the General Agreement on Tariffs and Trade (GATT) in the following year. How many countries attended this conference?

a. 19
b. 21
c. 23
d. 25
Answer  Explanation 

ANSWER: 23

Explanation:
No explanation is available for this question!


47)   Where are the headquarters of the General Agreement on Tariffs and Trade (GATT) organisation?

a. Geneva
b. Washington, DC
c. London
d. Ottawa
Answer  Explanation 

ANSWER: Geneva

Explanation:
No explanation is available for this question!


48)   There have been a series of rounds of negotiations between the signatories of GATT designed to reduce trade barriers on a multilateral basis. The first round took place in 1947. Which round came to be known as Kennedy Round?

a. Third
b. Fourth
c. Fifth
d. Sixth
Answer  Explanation 

ANSWER: Sixth

Explanation:
No explanation is available for this question!


49)   When was the Uruguay Round of multilateral trade negotiations under the GATT launched?

a. January. 1986
b. June. 1986
c. September. 1986
d. December. 1986
Answer  Explanation 

ANSWER: September. 1986

Explanation:
No explanation is available for this question!


50)   Including the Uruguay Round, how many multilateral trade negotiations have been held in the GATT to far?

a. Nine
b. Eight
c. Seven
d. Six
Answer  Explanation 

ANSWER: Eight

Explanation:
No explanation is available for this question!