Chapter Exam

Chapter 2 COMMERCE : Auxiliaries to Trade — Online MCQ Test

Q: Which of the following is considered an auxiliary to trade?

Answer: B. Transportation — Transportation facilitates the movement of goods from production centers to consumption centers, acting as a key auxiliary to trade.

Q: Banking as an auxiliary to trade helps in removing which of the following hindrances?

Answer: C. Hindrance of finance — Banks provide the necessary capital and credit facilities to traders, thereby removing the hindrance of finance.

Q: Advertising is a vital auxiliary to trade because it primarily removes:

Answer: B. The hindrance of knowledge — Advertising informs consumers about the availability and features of products, thereby removing the gap in information or knowledge.

COMMERCE · CLASS 12 INTER II YEAR · Andhra State Board

Practice Chapter 2 COMMERCE : Auxiliaries to Trade with a free chapter-wise online MCQ test for Andhra State Board CLASS 12 INTER II YEAR COMMERCE. This chapter covers: This chapter details supportive services for trade including banking. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2 COMMERCE : Auxiliaries to Trade — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 12 INTER II YEAR COMMERCE — Chapter 2 COMMERCE : Auxiliaries to Trade, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following is considered an auxiliary to trade?

A. Production
B. Transportation ✓
C. Management
D. Accounting

Answer: B. Transportation
Transportation facilitates the movement of goods from production centers to consumption centers, acting as a key auxiliary to trade.

Banking as an auxiliary to trade helps in removing which of the following hindrances?

A. Hindrance of place
B. Hindrance of time
C. Hindrance of finance ✓
D. Hindrance of knowledge

Answer: C. Hindrance of finance
Banks provide the necessary capital and credit facilities to traders, thereby removing the hindrance of finance.

Advertising is a vital auxiliary to trade because it primarily removes:

A. The risk of price fluctuation
B. The hindrance of knowledge ✓
C. The hindrance of place
D. The hindrance of storage

Answer: B. The hindrance of knowledge
Advertising informs consumers about the availability and features of products, thereby removing the gap in information or knowledge.

Analyze the impact of an efficient banking system on a country's trade. Which is the most significant consequence?

A. Decrease in insurance premiums
B. Faster movement of physical goods
C. Increased liquidity and investment in trade activities ✓
D. Reduction in the need for advertising

Answer: C. Increased liquidity and investment in trade activities
Banking fuels trade by providing liquidity and credit, allowing traders to expand operations and manage cash flow.

In the context of the Andhra State Board Commerce curriculum, which of the following is the most accurate description of 'Auxiliaries to Trade'?

A. These are activities that hinder the growth of internal trade.
B. These are services that facilitate trade by removing various hindrances. ✓
C. These are the secondary departments of a manufacturing firm.
D. These are government-imposed taxes on trade activities.

Answer: B. These are services that facilitate trade by removing various hindrances.
Auxiliaries are supportive services (banking, insurance, transport, etc.) that ensure trade processes run smoothly by eliminating obstacles.

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Chapter 3 COMMERCE : Financial Markets and Instruments