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MCQs - 2026-05

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521.
What does exceeding export expectations generally imply for a country's economy?
A Increased trade deficit
B Stronger foreign exchange earnings and economic activity
C Reduced domestic production
D Lower demand for local goods
522.
How did India's merchandise exports perform in April 2026 compared to expectations?
A Fell short of expectations
B Met expectations exactly
C Exceeded expectations
D Remained stagnant
523.
Which sectors are often key recipients of FDI, contributing to its strong momentum?
A Only traditional agriculture
B Manufacturing, services, and technology
C Small-scale retail only
D Government bonds and treasury bills
524.
What does strong FDI inflow typically signify for an economy?
A Capital outflow and reduced economic activity
B Increased foreign debt burden
C Positive investor sentiment and potential for job creation
D Decreased technological advancement
525.
What trend was observed in Foreign Direct Investment (FDI) inflows into India in early 2026?
A Significant decline
B Stagnation
C Strong momentum and growth
D Moderate but steady increase
526.
Why might the RBI choose to maintain the repo rate despite economic growth?
A To stimulate excessive borrowing and investment
B To signal a tightening of monetary policy
C To manage inflation risks and support sustainable growth
D To encourage a rapid depreciation of the Indian Rupee
527.
What is the primary tool used by the RBI to control inflation and manage liquidity in the economy?
A Fiscal Deficit
B Repo Rate
C Balance of Trade
D Foreign Exchange Reserves
528.
What was the Reserve Bank of India's (RBI) decision regarding the repo rate in early 2026, as reported?
A Increased to 6.75%
B Decreased to 6.25%
C Maintained at 6.5%
D Increased to 7.0%
529.
What does a high Manufacturing PMI reading, like 58.8 in April 2026, typically imply for the Indian economy?
A Deterioration in business conditions
B Stagnation of industrial output
C Strong growth and improved business activity
D Increased unemployment in the manufacturing sector
530.
A Manufacturing PMI reading above what level generally indicates expansion in the sector?
A 45
B 50
C 55
D 60