Question 1

What type of trade refers to buying and selling of goods and services within the boundaries of a nation?

Accepted Answer

Internal trade refers to buying and selling of goods and services within the boundaries of a nation. It includes both wholesale and retail trade conducted within the country without crossing international borders.

Question 2

Which of the following is a characteristic of internal trade?

Accepted Answer

Payments for internal trade are generally made in the national currency, eliminating foreign exchange risks and complexities.

Question 3

Wholesale trade generally involves dealing in goods in:

Accepted Answer

Wholesalers purchase goods in large quantities from manufacturers and sell them in relatively smaller lots to retailers.

Question 4

Who acts as a vital link between the manufacturer and the retailer?

Accepted Answer

Wholesalers act as a vital link between the producers/manufacturers and the retailers by bridging the gap of production and distribution.

Question 5

Retail trade involves selling goods directly to the:

Accepted Answer

Retail trade is the last link in the distribution chain where goods are sold directly to the ultimate consumers for personal use.

Internal Trade — CBSE Class 11 Business Studies Important Questions & Revision Notes