Which of the following is a key benefit for India from attracting substantial FDI in its green energy sector?
A Increased air pollution
B Job creation and technological advancement
C Higher dependence on imported fossil fuels
D Reduced foreign exchange reserves
Answer: B
FDI in the green energy sector not only brings in capital but also often transfers advanced technology and creates employment opportunities in manufacturing, installation, and maintenance of renewable energy projects.
1172.
Attracting $5 billion FDI in the green energy sector signifies India's commitment to:
A Increasing reliance on fossil fuels
B Promoting sustainable development and renewable energy sources
C Reducing energy imports
D Expanding traditional energy infrastructure
Answer: B
Significant FDI in the green energy sector indicates a strong focus on developing and expanding renewable energy capacity, aligning with global efforts towards sustainable development and reducing carbon emissions.
1173.
What does FDI stand for in the context of foreign investment?
A Foreign Direct Investment
B Foreign Domestic Investment
C Financial Development Index
D Federal Development Initiative
Answer: A
FDI (Foreign Direct Investment) refers to an investment made by a firm or individual in one country into business interests located in another country. It typically involves establishing business operations or acquiring business assets, including controlling interest in a foreign company.
1174.
Why are export promotion schemes particularly important for MSMEs?
A MSMEs have large established international networks.
B MSMEs often lack the resources and expertise to navigate global markets independently.
C MSMEs primarily focus on domestic sales.
D Exporting is inherently less risky for MSMEs than domestic business.
Answer: B
MSMEs typically have limited financial resources, manpower, and market intelligence compared to large corporations. Export promotion schemes provide crucial support to overcome these limitations and participate effectively in international trade.
1175.
Which of the following is a likely component of a government's export promotion scheme for MSMEs?
A Increased import duties
B Subsidies on export credit
C Restrictions on foreign partnerships
D Higher taxes on export earnings
Answer: B
Subsidies on export credit help MSMEs manage the financial risks and costs associated with exporting, making it easier for them to secure funding and offer competitive payment terms to international buyers.
1176.
What is the primary objective of a new export promotion scheme launched for Micro, Small, and Medium Enterprises (MSMEs)?
A To reduce domestic consumption
B To increase imports of raw materials
C To boost the export competitiveness and volume of MSMEs
D To discourage foreign investment
Answer: C
Export promotion schemes are designed to encourage businesses, especially MSMEs which often face challenges in international trade, to export more by providing support, incentives, and facilitating their access to global markets.
1177.
What does 'evolving inflation dynamics' refer to in the context of the RBI's decision on the repo rate?
A A stable and predictable inflation rate
B Changes and uncertainties in the factors influencing inflation
C A consistent decline in commodity prices
D A guaranteed decrease in interest rates
Answer: B
Evolving inflation dynamics implies that the factors driving inflation are changing, possibly due to supply chain disruptions, global commodity price fluctuations, or shifts in demand, making the inflation outlook uncertain and requiring careful monitoring by the RBI.
1178.
When the RBI maintains the repo rate, it generally indicates a stance of:
A Aggressive monetary tightening
B Significant monetary easing
C Neutral or cautious monetary policy
D Fiscal stimulus
Answer: C
Maintaining the repo rate suggests that the RBI is observing the current economic conditions, particularly inflation dynamics, and is not immediately resorting to significant changes in its monetary policy, indicating a cautious or neutral approach.
1179.
What is the primary tool used by the Reserve Bank of India (RBI) to control inflation and manage liquidity in the economy?
A Fiscal Deficit
B Repo Rate
C Balance of Payments
D Gross Domestic Product (GDP)
Answer: B
The Repo Rate is the rate at which the RBI lends money to commercial banks. By adjusting this rate, the RBI influences the cost of borrowing for banks, which in turn affects lending rates for consumers and businesses, thereby managing inflation and liquidity.
1180.
What is the primary objective of the G7 Summits, including the one scheduled for Italy in 2026?
A To coordinate international policy on major global issues
B To establish a new global currency
C To dictate trade terms to developing nations
D To exclusively focus on internal economic policies of member states
Answer: A
The G7 serves as a forum for leaders of major advanced economies to discuss and coordinate their policies on pressing global issues, including economic, political, and security matters.
