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B Com Exam  >  B Com Test  >  Indian Economy  >  Test: Sector-wise Trends and Issues- 1 - B Com MCQ

Sector-wise Trends and Issues- 1 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Sector-wise Trends and Issues- 1 (10 Questions)

You can prepare effectively for B Com Indian Economy with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Sector-wise Trends and Issues- 1". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Sector-wise Trends and Issues- 1 - Question 1
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Which of the following is NOT a form of foreign investment?

Detailed Solution: Question 1

National Resource Investment (NRI) is not a recognized form of foreign investment. It should be Non-Resident Indian (NRI), which refers to individuals of Indian origin living abroad.

Test: Sector-wise Trends and Issues- 1 - Question 2
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What is the main purpose of foreign capital in a developing country like India?

Detailed Solution: Question 2

Foreign capital, especially in developing countries like India, is needed to bridge the resource gap between planned investment and locally mobilized savings. It helps in filling the shortfall between the required resources for development and the available domestic savings.

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Test: Sector-wise Trends and Issues- 1 - Question 3
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What is the primary contribution of foreign capital to a developing country?

Detailed Solution: Question 3

The primary contribution of foreign capital in a developing country is to fill the resource gap between planned investment and locally mobilized savings, thereby aiding in the country's development.

Test: Sector-wise Trends and Issues- 1 - Question 4
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Why is Foreign Direct Investment (FDI) preferred over Foreign Portfolio Investment (FPI)?

Detailed Solution: Question 4

FDI is preferred over FPI because it brings not only capital but also better management practices and technology transfer. FDI tends to be more stable and contributes to the overall growth of the economy.

Test: Sector-wise Trends and Issues- 1 - Question 5
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Which form of foreign investment is considered to be the most beneficial for the economy?

Detailed Solution: Question 5

Foreign Direct Investment (FDI) is considered the most beneficial form of foreign investment for the economy. It involves a lasting interest and influence over the management of a business enterprise, contributing not only capital but also technology and better management practices.

Test: Sector-wise Trends and Issues- 1 - Question 6
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Which sector of the economy is primarily managed by the private sector in India?

Detailed Solution: Question 6

The private sector primarily manages the agriculture sector in India, including allied activities like dairying, animal husbandry, and poultry.

Test: Sector-wise Trends and Issues- 1 - Question 7
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What is the role of Foreign Portfolio Investment (FPI) in the Indian economy?

Detailed Solution: Question 7

The role of Foreign Portfolio Investment (FPI) is to increase capital availability in the economy in general. It doesn't directly contribute to additional production capacity like Foreign Direct Investment (FDI).

Test: Sector-wise Trends and Issues- 1 - Question 8
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What is the purpose of concessional assistance in foreign investment?

Detailed Solution: Question 8

Concessional assistance in foreign investment provides loans at low interest rates with long maturity periods to support economic development.

Test: Sector-wise Trends and Issues- 1 - Question 9
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What is the primary advantage of Foreign Direct Investment (FDI) over Foreign Institutional Investment (FII)?

Detailed Solution: Question 9

The primary advantage of Foreign Direct Investment (FDI) over Foreign Institutional Investment (FII) is that FDI brings technology transfer, better management practices, and lasting influence over the management of a business enterprise.

Test: Sector-wise Trends and Issues- 1 - Question 10
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Which of the following is NOT a form of foreign investment as per the Indian government's classification?

Detailed Solution: Question 10

Non-Concessional Assistance (NCA) is not a recognized form of foreign investment as per the Indian government's classification.

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About this B Com Practice Test

This test contains 10 MCQs on Sector-wise Trends and Issues- 1 with detailed solutions for each question. It is part of the Indian Economy course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Sector-wise Trends and Issues- 1 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Indian Economy course. The course offers:
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