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MCQs 2026

31.
Which of the following is a tool that the RBI might use to manage liquidity in the banking system?
A Fiscal Deficit Management
B Open Market Operations (OMOs)
C Government Bond Issuance
D Taxation Policy
32.
A 'cautious liquidity stance' by the RBI typically implies that the central bank is likely to:
A Inject a large amount of liquidity into the system
B Absorb excess liquidity from the system
C Significantly reduce policy interest rates
D Encourage banks to lend aggressively
33.
In September 2026, the Reserve Bank of India (RBI) maintained a cautious liquidity stance. What is the primary objective of RBI's liquidity management?
A To increase inflation rapidly
B To ensure price stability and support economic growth
C To devalue the Indian Rupee
D To encourage excessive borrowing by commercial banks
34.
A sustained strong Manufacturing PMI reading, as observed in August 2026, is generally a positive indicator for which of the following?
A Inflationary pressures
B Economic growth and employment
C Government debt levels
D Interest rate hikes
35.
Which organization is typically responsible for compiling and releasing the Manufacturing PMI data for India?
A Reserve Bank of India (RBI)
B National Statistical Office (NSO)
C S&P Global
D Ministry of Finance
36.
In August 2026, India's Manufacturing Purchasing Managers' Index (PMI) remained strong. What does a PMI reading above 50 generally indicate?
A A contraction in manufacturing activity
B No change in manufacturing activity
C An expansion in manufacturing activity
D A stagnation in manufacturing output
37.
India and France have significantly enhanced their cooperation in the Indo-Pacific region. This collaboration primarily aims to achieve which of the following objectives?
A Establish a joint military base in the region
B Promote a free, open, and inclusive Indo-Pacific
C Form an exclusive economic bloc
D Counter specific regional powers unilaterally
38.
Which of the following is a key pillar of the India-France strategic partnership, particularly highlighted by joint exercises like 'Varuna' (naval), 'Garuda' (air), and 'Shakti' (army)?
A Economic and Trade Cooperation
B Cultural Exchange Programs
C Defence and Security Cooperation
D Space Exploration Initiatives
39.
The 'Horizon 2047' roadmap, unveiled in 2023, outlines the future of the strategic partnership between India and which other country, aiming for deeper cooperation across various sectors by the centenary of India's independence?
A United States
B Russia
C France
D Japan
40.
What is the primary responsibility of the UN Security Council, as outlined in the UN Charter?
A To promote economic development globally
B To maintain international peace and security
C To administer international justice
D To protect human rights worldwide
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