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21
General Agreement on Tariffs and Trade (GATT)
Discuss
Answer & Solution
Answer: Option C
Solution:
General Agreement on Tariffs and Trade (GATT) removed some tariffs over a five- to ten-year period. It was a free trade agreement between 23 countries that eliminated tariffs and increased international trade.
22
One of biggest borrowers in globe is
Discuss
Answer & Solution
Answer: Option C
Solution:
One of biggest borrowers in globe is World Bank. The World Bank Group (WBG) was established in 1944 to rebuild post-World War II Europe under the International Bank for Reconstruction and Development (IBRD). It is one of a variety of organizations seeking to shape the world economy.
23
Not a currency but basically a component of account of
Discuss
Answer & Solution
Answer: Option B
Solution:
Not a currency but basically a component of account of special drawing rights. Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.
24
Current Account in BOP characterize summary of stream of funds between particular country and all other country due to
Discuss
Answer & Solution
Answer: Option B
Solution:
Current Account in BOP characterize summary of stream of funds between particular country and all other country due to purchase of goods and services. The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.
25
Bank for International Settlements Start working in
Discuss
Answer & Solution
Answer: Option A
Solution:
Bank for International Settlements Start working in 1930. It is the oldest global financial institution and operates under the auspices of international law.
26
Single European Act created in
Discuss
Answer & Solution
Answer: Option B
Solution:
Single European Act created in 1988. Single European Act (SEA), agreement enacted by the European Economic Community (EEC; precursor to the European Community and, later, the European Union) that committed its member countries to a timetable for their economic merger and the establishment of a single European currency and common foreign and domestic policies.
27
Political hazard is related to danger of loss of worth due to
Discuss
Answer & Solution
Answer: Option A
Solution:
Political hazard is related to danger of loss of worth due to Government or Public actions. Political risk is the risk of financial, market or personnel losses because of political decisions or disruptions.
28
Which of following is not a means in which agency troubles can be lessen through corporate rule?
Discuss
Answer & Solution
Answer: Option C
Solution:
Acquisition of a foreign subsidiary is not a means in which agency troubles can be lessen through corporate rule.
29
Investors take political hazard as
Discuss
Answer & Solution
Answer: Option B
Solution:
Investors take political hazard as discouraged. Political risk is also known as " geopolitical risk," and becomes more of a factor as the time horizon of investment gets longer.
30
A merely household organization may be influenced by exchange rate variations if it faces at slightest some
Discuss
Answer & Solution
Answer: Option B
Solution:
A merely household organization may be influenced by exchange rate variations if it faces at slightest some foreign competition. Foreign competition is a viable alternative for customers, it would lessen a dominant firm's ability to exercise market power post-merger.