The 'Letter of Credit' in foreign trade is issued by: MCQ with Answer and Explanation

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The 'Letter of Credit' in foreign trade is issued by:

A. the importer's bank

B. the WTO

C. the exporter

D. the customs authority

Answer: Option A

Solution (By JKSSB Mock Tests)

A letter of credit is issued by the importer's bank guaranteeing payment to the exporter.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Public Distribution System' in India is administered by:

A. Ministry of Agriculture

B. NITI Aayog

C. Ministry of Finance

D. Department of Food and Public Distribution

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Correct Answer: Option D

Explanation:
The public distribution system is administered by the Department of Food and Public Distribution.

This question belongs to: Economy GK Economy Set 1

Question #2

Economic cost includes:

A. only accounting costs

B. only implicit costs

C. only explicit costs

D. both explicit and implicit costs

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Correct Answer: Option D

Explanation:
Economic cost includes both explicit costs and implicit opportunity costs.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of the Indian economy, the term 'Twin Deficit' refers to:

A. Budget deficit and trade surplus

B. Revenue deficit and primary deficit only

C. Fiscal deficit and current account deficit

D. Capital account deficit and fiscal surplus

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Correct Answer: Option C

Explanation:
Twin deficit refers to the simultaneous existence of a fiscal deficit (government budget) and a current account deficit (external sector) in an economy.

This question belongs to: Economy GK Economy Set 1

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