Commercial policy means _____.

1. 1. Policy about imports and exports
   2. Policy about markets
   3. Policy about money supply
   4. Policy of controlling of prices of goods

Balance of payments of a country includes _____.

1. 1. Savings and investment account
   2. Balance of trade
   3. Capital receipts and payments
   4. (b) and (c) above

Government policy about exports and imports is called _____.

1. 1. Monetary Policy
   2. Fiscal Policy
   3. Commercial Policy
   4. Finance Policy

Two countries can gain from foreign trade if:

1. 1. Tariff rates are different
   2. Cost ratios are different
   3. Price ratios are different
   4. (b) and (c) above

Which is a monetary measure to increase employment?

1. 1. Increase in govt. expenditure
   2. Reduce govt. expenditure
   3. reducing interest rate
   4. Increase in interest rate

Treasury bill is used for _____.

1. 1. getting long term loans
   2. getting short term loans
   3. Treasury bill is not credit instrument
   4. Treasury bill is a govt. tax bill

Open Market Operations is _____.

1. 1. buying and selling govt. securities
   2. buying and selling bills of exchange
   3. buying and selling shares of companies
   4. buying and selling foreign exchange

Modern theory of international trade is based on the views of _____.

1. 1. Robbins and Ricardo
   2. Adam Smith and Marshall
   3. Heckcsher and Ohlin
   4. None of these

Trade between two countries can be useful if cost ratios of goods are _____.

1. 1. equal
   2. undetermined
   3. decreasing
   4. different

Theory of comparative advantage was presented by _____.

1. 1. Ricardo
   2. Adam Smith
   3. Arshad
   4. Hicks