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MCQ on Internal Trade Pdf

Internal Trade MCQ Questions and Answers Pdf

1. What is domestic trade?

(1) Internal trade is the other name for domestic trade, which refers to the buying and selling of goods within the boundaries of a nation. 

(2) Internal trade refers to the buying and selling of goods and services within the domestic territory of a country. 

(3) The buying and selling process takes place between the buyers and sellers who are living in the same locality, town, or city.

(4) All of these 

Answer: 4


2. What is also called internal trade?

(1) domestic trade 

(2) home trade

(3) Both 

(4) None of these 

Answer: 3


3. When goods are imported for the purpose of export is called _________

(1) Foreign trade

(2) Entrepot

(3) Home trade

(4) Trade

Answer: B


4. The purchase of goods from a foreign country is called ____________

(1) Entrepot

(2) Import

(3) Re-Export

(4) Export

Answer: 2


5. Which of the following is internal trade?

(1) Trade between Countries 

(2) Trade between regions 

(3) Trade between the same city

(4) Both 2 and 3

Answer: 4


6. What are two types of internal trade?

(1) wholesale trade 

(2) retail trade.

(3) Both

(4) None of these 

Answer: 3


7. ___________ can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices rise.

(1) Wholesaler

(2) Agent

(3) Retailer

(4) Mercantile agent

Answer: 1


8. The persons who come in between the primary producer and the final consumer to promote trade are called____________.

(1) Trader

(2) Middleman

(3) Auctioneer

(4) Agent

Answer: 2


9. Which of the following is a Feature of Internal Trade________

(1) The buying and selling of goods take place within the boundaries of the same country.

(2) Payment for goods and services is made in the currency of the home country.

(3) It involves transactions between the producers, consumers, and the middlemen.

(4) All of these 

Answer: 4


10. Which of the following is not a feature of internal trade_______

(1) The goods must be a part of domestic production.

(2) Goods must be purchased from an individual or a firm established within a country.

(3)  Goods can be delivered using locally available modes of transport.

(4) Goods transported to other countries 

Answer: 4


11. What is the importance of internal trade?

(1) Internal trade involves buying and selling of goods within the domestic market.

(2) Internal trade provides employment to millions of people.

(3) Because of the internal trade several supporting industries come into existence.

(4) All of these 

Answer: 4


12. What are the differences between internal trade and international trade?

(1) The cost of trading internationally is considerably higher than trading domestically. 

(2) Internal trade exchanges goods and services inside of a country while international trade between two countries 

(3) Both

(4) None of these 

Answer: C


13. What are the similarities between internal trade and international trade?

(1) Both international trade and internal trade involve the use of money as a medium of exchange. 

(2) They both involved a degree of specialization between the trading partners since specialization causes exchange. 

(3) Both forms of trade involve the activities of middlemen.

(4) All of these 

Answer: 4

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