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Economy & Business MCQs - 2026-04-22

1.
A sustained strong momentum in the manufacturing sector is generally considered beneficial for an economy due to its potential to create:
A Increased reliance on imports
B Higher unemployment rates
C Employment opportunities and export growth
D Reduced foreign exchange reserves
2.
Which of the following indices is primarily used in India to measure the performance and output of the industrial sector, including manufacturing?
A Consumer Price Index (CPI)
B Wholesale Price Index (WPI)
C Index of Industrial Production (IIP)
D Purchasing Managers' Index (PMI)
3.
A strong momentum in the manufacturing sector, as mentioned, directly contributes to an increase in which of the following?
A Agricultural output
B Services sector growth
C Industrial output
D Fiscal deficit
4.
What is the primary objective of the Reserve Bank of India's (RBI) monetary policy framework in India?
A Maximizing employment
B Maintaining price stability while keeping in mind the objective of growth
C Promoting exports
D Regulating foreign exchange markets only
5.
According to the statement, what is the primary reason cited for the RBI maintaining status quo on its monetary policy?
A Boosting economic growth
B Managing exchange rate volatility
C Addressing inflation concerns
D Supporting government borrowing
6.
When the RBI 'maintains status quo on monetary policy,' what key interest rate is most commonly kept unchanged?
A Bank Rate
B Repo Rate
C Marginal Standing Facility (MSF) Rate
D Statutory Liquidity Ratio (SLR)
7.
Which of the following is a key component of India's GDP calculation that would be directly boosted by 'robust domestic demand'?
A Net Exports
B Government Expenditure
C Private Final Consumption Expenditure
D Gross Fixed Capital Formation
8.
What does 'robust domestic demand' primarily indicate in an economy?
A High inflation rates
B Strong consumer spending and investment
C Decline in imports
D Increased government borrowing
9.
According to the given statement, what is identified as the primary driver for India's strong GDP growth?
A Increasing exports
B Robust domestic demand
C Foreign direct investment
D Government subsidies
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