Q.1 Which international organization primarily facilitates free trade among its member countries?
IMF
WTO
World Bank
UNCTAD
Explanation - The World Trade Organization (WTO) is responsible for regulating international trade and facilitating free trade agreements among member countries.
Correct answer is: WTO
Q.2 The term 'BRICS' refers to an economic grouping of which countries?
Brazil, Russia, India, China, South Africa
Belgium, Romania, Italy, Canada, Spain
Bangladesh, Russia, Indonesia, Chile, Singapore
Brazil, Rwanda, Iceland, China, Saudi Arabia
Explanation - BRICS is an acronym for Brazil, Russia, India, China, and South Africa, which are considered major emerging economies.
Correct answer is: Brazil, Russia, India, China, South Africa
Q.3 Which agreement established the framework for the creation of the World Trade Organization?
GATT
NAFTA
TPP
Bretton Woods Agreement
Explanation - The General Agreement on Tariffs and Trade (GATT) was the precursor to the WTO, providing the basis for multilateral trade negotiations.
Correct answer is: GATT
Q.4 Which country is the largest recipient of Foreign Direct Investment (FDI) globally in recent years?
India
China
United States
Germany
Explanation - The United States has consistently been the largest recipient of FDI due to its large consumer market, stable economy, and technological infrastructure.
Correct answer is: United States
Q.5 The term 'Trade Balance' refers to:
Difference between exports and imports
Total foreign investment received
Exchange rate of currency
Amount of foreign aid received
Explanation - Trade balance is the difference between the value of a country's exports and imports of goods and services.
Correct answer is: Difference between exports and imports
Q.6 Which country hosts the headquarters of the International Monetary Fund (IMF)?
London, UK
Washington, D.C., USA
Geneva, Switzerland
Paris, France
Explanation - The IMF headquarters is located in Washington, D.C., and it oversees global financial stability and monetary cooperation.
Correct answer is: Washington, D.C., USA
Q.7 The World Bank primarily focuses on:
Military funding
International trade disputes
Development and poverty reduction
Currency regulation
Explanation - The World Bank provides financial and technical assistance to developing countries to reduce poverty and support development projects.
Correct answer is: Development and poverty reduction
Q.8 Which economic indicator reflects the average level of prices of goods and services in a country?
GDP
CPI
FDI
Trade Balance
Explanation - The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services.
Correct answer is: CPI
Q.9 Which agreement replaced NAFTA in 2020?
USMCA
TPP
RCEP
CPTPP
Explanation - The United States–Mexico–Canada Agreement (USMCA) replaced NAFTA to modernize trade rules among the three countries.
Correct answer is: USMCA
Q.10 Which of the following is NOT a primary objective of the World Trade Organization?
Reducing trade barriers
Settling trade disputes
Regulating military alliances
Promoting fair competition
Explanation - The WTO deals with trade regulations and does not involve itself with military or defense matters.
Correct answer is: Regulating military alliances
Q.11 Which emerging economic partnership includes countries from Asia and Oceania for regional trade?
RCEP
MERCOSUR
BRICS
G7
Explanation - The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement among Asia-Pacific nations aimed at economic integration.
Correct answer is: RCEP
Q.12 Special Drawing Rights (SDR) are associated with which organization?
IMF
WTO
World Bank
OECD
Explanation - SDRs are international reserve assets created by the IMF to supplement member countries’ official reserves.
Correct answer is: IMF
Q.13 Which is a primary goal of the G20 forum?
Promoting global financial stability
Conducting military exercises
Regulating oil production
Setting environmental laws
Explanation - The G20 brings together major economies to discuss policies for global financial stability and sustainable growth.
Correct answer is: Promoting global financial stability
Q.14 Which region is the primary focus of the African Continental Free Trade Area (AfCFTA)?
Africa
Asia
Europe
Latin America
Explanation - AfCFTA aims to create a single market for goods and services across Africa, boosting intra-African trade.
Correct answer is: Africa
Q.15 Which term describes a country exporting more than it imports?
Trade surplus
Trade deficit
Balance of payments
Foreign aid surplus
Explanation - A trade surplus occurs when the value of a country's exports exceeds the value of its imports.
Correct answer is: Trade surplus
Q.16 Which organization provides development loans to poor countries but also monitors macroeconomic policies?
World Bank
IMF
UNDP
WTO
Explanation - The IMF provides financial support, monitors policies, and assists in stabilizing economies, whereas the World Bank focuses on long-term development loans.
Correct answer is: IMF
Q.17 Which currency is considered the global reserve currency?
Euro
Japanese Yen
US Dollar
British Pound
Explanation - The US Dollar is widely used in international trade and held by central banks as a primary reserve currency.
Correct answer is: US Dollar
Q.18 Which is the largest single trading bloc in the world by nominal GDP?
EU
NAFTA
ASEAN
MERCOSUR
Explanation - The European Union is the largest economic and trading bloc by nominal GDP, integrating multiple economies under a common market.
Correct answer is: EU
Q.19 The term 'tariff' refers to:
A tax on imports or exports
A type of international loan
A financial aid package
A global trade agreement
Explanation - Tariffs are taxes imposed on imported or exported goods to regulate trade and protect domestic industries.
Correct answer is: A tax on imports or exports
Q.20 Which organization publishes the World Economic Outlook report?
IMF
World Bank
OECD
WTO
Explanation - The IMF publishes the World Economic Outlook report, analyzing global economic trends and providing policy recommendations.
Correct answer is: IMF
Q.21 Which type of trade agreement removes barriers on certain goods but allows protection for others?
Preferential Trade Agreement
Customs Union
Free Trade Area
Common Market
Explanation - Preferential Trade Agreements allow reduced tariffs on selected goods while keeping protection for others.
Correct answer is: Preferential Trade Agreement
Q.22 Which of the following is a key goal of the Organization for Economic Cooperation and Development (OECD)?
Promoting economic growth and cooperation among developed countries
Managing military alliances
Regulating WTO trade disputes
Issuing currency
Explanation - The OECD helps coordinate policies and share best practices to foster economic growth and stability among developed nations.
Correct answer is: Promoting economic growth and cooperation among developed countries
Q.23 Which of the following best describes 'foreign aid tied aid'?
Aid that must be spent on goods/services from donor country
Aid given with no conditions
Aid in the form of military assistance
Loans at zero interest
Explanation - Tied aid requires recipient countries to spend the aid on products or services from the donor country, limiting their flexibility.
Correct answer is: Aid that must be spent on goods/services from donor country
Q.24 Which of the following countries is NOT a member of the G7?
Japan
Germany
Brazil
Italy
Explanation - The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; Brazil is not a member.
Correct answer is: Brazil