International Economic & Trade Bodies MCQs for UPSC Prelims

65 practice questions on International Economic & Trade Bodies from the International Relations section of the UPSC Prelims syllabus. 65 come with a written explanation and 10 are actual previous year questions. Try the sample set below - the answer stays hidden until you ask for it.

7 Easy 34 Medium 24 Hard 10 from past papers

Sample questions

Q1
Previous year question medium

Consider the following statements: Statement-I: India does not import apples from the United States of America. Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority. Which one of the following is correct in respect of the above statements?

  1. A Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. B Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. C Statement-I is correct but Statement-II is incorrect
  4. D Statement-I is incorrect but Statement-II is correct
Show answer and explanation

Correct answer: D - Statement-I is incorrect but Statement-II is correct

Statement-I is incorrect because India has long imported apples from the United States, particularly Washington apples, and in June 2023 it removed the additional retaliatory duties on them, boosting these imports further. Statement-II is correct since Indian law requires approval of the competent authority, under the Food Safety and Standards Act and the Environment (Protection) Act framework, before genetically modified food can be imported. With Statement-I false and Statement-II true, the last option is the answer.

Q2
Previous year question medium

Consider the following statements: 1. New Development Bank has been set up by APEC. 2. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: B - 2 only

The New Development Bank was established by the BRICS grouping (Brazil, Russia, India, China and South Africa), not by APEC, so statement 1 is incorrect. Its headquarters are located in Shanghai, China, making statement 2 correct. Since only statement 2 holds, the answer is (b). Options (a), (c) and (d) wrongly credit APEC or reject the true statement about the Shanghai headquarters.

Q3
Previous year question hard

Consider the following statements: 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: A - 1 only

India is indeed a member of the International Grains Council, the intergovernmental body administering the Grains Trade Convention, so statement 1 is correct. Statement 2 is incorrect because IGC membership is not a precondition for trading in grains; any country can export or import rice and wheat regardless of membership, as the Council only promotes cooperation and market transparency in the grains trade. The correct choice is therefore statement 1 alone.

Q4
Previous year question easy

Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) : I. It provides loans and guarantees to middle income countries. II. It works single-handedly to help developing countries to reduce poverty. III. It was established to help Europe rebuild after the World War II. Which of the statements given above are correct?

  1. A I and II only
  2. B II and III only
  3. C I and III only
  4. D I, II and III
Show answer and explanation

Correct answer: C - I and III only

The IBRD lends and provides guarantees mainly to middle-income and creditworthy low-income countries, so statement I is correct. It was created at the Bretton Woods Conference of 1944 with the original mandate of financing the reconstruction of war-ravaged Europe, so statement III is correct. Statement II fails because the IBRD never works single-handedly; it is one of the five institutions of the World Bank Group and operates alongside the IDA, IFC, MIGA and ICSID in poverty reduction efforts. Hence (c) I and III only is the answer.

Q5
Previous year question medium

Consider the following statements : 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO's Bali Ministerial Package of 2013. 3. TFA came into force in January 2016. Which of the statements given above is/are correct?

  1. A 1 and 2 only
  2. B 1 and 3 only
  3. C 2 and 3 only
  4. D 1, 2 and 3
Show answer and explanation

Correct answer: A - 1 and 2 only

Statements 1 and 2 are correct: India ratified the WTO Trade Facilitation Agreement, and the TFA emerged from the Bali Ministerial Package adopted in December 2013. Statement 3 is wrong on the date because the TFA entered into force in February 2017, once two-thirds of WTO members had ratified it, not in January 2016. Hence the answer is 1 and 2 only.

Q6
Previous year question medium

With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements: 1. AIIB has more than 80 member nations. 2. India is the largest shareholder in AIIB. 3. AIIB does not have any members from outside Asia. Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 and 3 only
  3. C 1 and 3 only
  4. D 1, 2 and 3
Show answer and explanation

Correct answer: A - 1 only

By the time of the exam the AIIB had grown well past 80 approved members, so statement 1 is correct. China, the founder, is the single largest shareholder and holds the largest voting share, with India only the second largest, so statement 2 is wrong. The Bank deliberately includes many non-regional (non-Asian) members such as the UK, Germany and France, so statement 3 is also wrong. Only statement 1 stands, making 1 only the correct choice.

Q7
Previous year question medium

Consider the following countries : 1. Australia 2. Canada 3. China 4. India 5. Japan 6. USA Which of the above are among the 'free-trade partners' of ASEAN ?

  1. A 1, 2, 4 and 5
  2. B 3, 4, 5 and 6
  3. C 1, 3, 4 and 5
  4. D 2, 3, 4 and 6
Show answer and explanation

Correct answer: C - 1, 3, 4 and 5

ASEAN's free-trade partners among those listed are Australia, China, India and Japan, so 'C' (1, 3, 4 and 5) is correct. ASEAN has signed free-trade agreements with Australia (and New Zealand), China, India, Japan and South Korea. Canada and the USA are not ASEAN FTA partners, which is why options including them (a, b, d) are wrong.

Q8
Previous year question medium

'European Stability Mechanism', sometimes seen in the news, is an

  1. A agency created by EU to deal with the impact of millions of refugees arriving from Middle East
  2. B agency of EU that provides financial assistance to eurozone countries
  3. C agency of EU to deal with all the bilateral and multilateral agreements on trade
  4. D agency of EU to deal with the conflicts arising among the member countries
Show answer and explanation

Correct answer: B - agency of EU that provides financial assistance to eurozone countries

The European Stability Mechanism, set up in 2012 in the wake of the eurozone sovereign debt crisis, is a permanent firewall that raises money on capital markets and lends to euro area members in financial distress, as it did for Greece, Cyprus and Spain's banking sector. It has no mandate over refugees, which fall under bodies like the European Asylum Support Office and Frontex. Trade agreements are negotiated by the European Commission, and disputes among member states are handled politically or by the Court of Justice of the EU, so the remaining options misdescribe the ESM.

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More International Relations topics

Multilateral Groupings 113 Treaties & Agreements 104 Global Conventions & Forums 95 Regional Organisations 76 India & Neighbours 70 United Nations & Agencies 67 Border & Security Issues 42 Bilateral Relations 36 Indian Diaspora 25