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JAIIB IE&IFS Unit 8 — Foreign Trade Policy, Foreign Investments & Economic Development: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 8 — Foreign Trade Policy, Foreign Investments & Economic Development (Module A — Indian Economic Architecture). The Mock Centre holds 48 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module A48 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. FTP = EXIM governance; pre-1991 = high tariffs/taxes; FTP 2015-20 from 1-4-2015, $900-bn target, MEIS (5 schemes merged) + SEIS, EPCG domestic-sourcing EO 75%, 108 MSME clusters, extended to March 2023.
  2. FTP 2023 (1-4-2023): NO end-date (dynamic); four pillars — remission, collaboration, ease of business, emerging areas (e-commerce, district hubs, SCOMET); diversify imports away from China; MEIS→RoDTEP after WTO ruling.
  3. FDI routes: automatic (no prior approval, 30-day RBI reporting) vs government (CCEA above ₹5,000 crore; Pakistan/land-border countries always government route).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Foreign Trade Policy governs:
Why (b): Foreign Trade Policy governs EXPORT-IMPORT ACTIVITY — the EXIM rulebook administered by the DGFT.
Question 2 of 5
The FDI limit in PRIVATE banking is:
Why (c): The FDI limit in PRIVATE banking is 74% — automatic up to 49%, government route beyond.
Question 3 of 5
The types of FDI number:
Why (b): FDI comes in THREE types: greenfield (build new), brownfield (buy existing) and joint ventures (partner up).
Question 4 of 5
FDI is PROHIBITED in:
Why (d): Prohibited list: lottery, gambling/casinos, chit funds, Nidhis, TDRs, real-estate trading, tobacco manufacturing, atomic energy/railway operations (select).
Question 5 of 5
The WIDER concept between growth and development is:
Why (b): ECONOMIC DEVELOPMENT is the WIDER concept — it contains growth plus education, health, equity and institutions. Development ⊃ growth.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
FTP 2015-20FTP 2023Fixed 5-year, $900-bn target vs open-ended, 4 pillars
MEISRoDTEPWTO-challenged subsidy vs compliant remission
Practise all 48 questions on Unit 8. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.