The 'free trade area' is an arrangement where member countries: MCQ with Answer and Explanation

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The 'free trade area' is an arrangement where member countries:

A. harmonize taxes

B. eliminate tariffs among themselves but retain independent external tariffs

C. adopt a common external tariff

D. share a common currency

Answer: Option B

Solution (By JKSSB Mock Tests)

In a free trade area, members remove tariffs among themselves but maintain independent external tariffs.

This question belongs to: Economy GK Economy Set 1

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Question #1

In the context of Indian planning, the First Five Year Plan focused primarily on:

A. Export promotion

B. Agriculture and irrigation

C. Information technology

D. Heavy industries

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Correct Answer: Option B

Explanation:
The First Five Year Plan (1951-56) gave priority to agriculture, irrigation and power to address food shortages and build a foundation for future growth.

This question belongs to: Economy GK Economy Set 1

Question #2

The Sensex is a stock market index of the:

A. National Stock Exchange

B. India International Exchange

C. Bombay Stock Exchange

D. Multi Commodity Exchange

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Correct Answer: Option C

Explanation:
The Sensex is the benchmark index of the Bombay Stock Exchange (BSE).

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a major component of India's external debt?

A. Only equity portfolio investment

B. Only domestic government securities held by residents

C. Commercial borrowings, NRI deposits, multilateral and bilateral loans

D. Only short-term trade credit

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Correct Answer: Option C

Explanation:
India's external debt comprises multilateral and bilateral loans, commercial borrowings, NRI deposits, trade credit and other liabilities.

This question belongs to: Economy GK Economy Set 1

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