Person who is to be paid the sum of money as written on the cheque
Person who takes the cheque to the bank
Bank on which the cheque is drawn
Person who writes out the cheque
Bank official who certifies the payment
Correct answer is D
The drawer is the account owner who issued the cheque (to probably a third party). The bank is the drawee, while the party who is to catch the cheque is the payee.
International trade and domestic trade are similar in all aspects except that
Transportation by land, water and air is involved
Goods are exchanged
Services are exchanged
The same currency is used as the medium of exchange
Specialization and increased consumption is encouraged
Correct answer is D
No explanation has been provided for this answer.
A condition which adversely affects expansion of production is
Effective management
Limited size of the market
Availability of funds
Increased profit prospects
Increasing returns to scale
Correct answer is B
No explanation has been provided for this answer.
Which of these does not relate to the law of comparative advantage?
The law of comparative advantage was propounded by David Ricardo
The law stresses the importance of relative efficiency
In order to specialize, a country must have absolute advantage
The law is based on opportunity cost principle
The principle if followed, should increase total world output
Correct answer is C
No explanation has been provided for this answer.
Which of the following statements is true about terms of trade?
Terms of trade shows the difference between the values of export and imports
Terms of trade indicate the rate at which exports exchange for imports
It is the ration of price index of exports to imports
It is usually expressed as percentage
A rise in the price of export relative to imports is an improvement
Correct answer is C
No explanation has been provided for this answer.