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Economy & Business MCQs - 2026-04-23

1.
Which of the following is a prominent global agency that often releases GDP growth forecasts for India?
A World Health Organization (WHO)
B International Monetary Fund (IMF)
C United Nations Educational, Scientific and Cultural Organization (UNESCO)
D International Labour Organization (ILO)
2.
A revision upwards in India's GDP growth forecast by a global agency generally indicates:
A A weakening of the Indian economy.
B Increased confidence in the country's economic prospects.
C A decrease in foreign investment.
D Higher inflation rates.
3.
When global agencies revise India's GDP growth forecasts, it typically reflects changes in:
A Only the country's population.
B Current economic conditions, policy changes, and global economic outlook.
C The number of holidays in India.
D The price of gold in international markets.
4.
The introduction of a new liquidity management framework by the RBI is expected to have an impact on:
A Only the interbank lending rates.
B The overall cost of credit and the transmission of monetary policy.
C Only the foreign exchange reserves of India.
D The fiscal deficit of the government.
5.
Which of the following is a key tool likely to be used under the RBI's new liquidity management framework?
A Direct printing of currency notes by commercial banks.
B Open Market Operations (OMOs) and Liquidity Adjustment Facility (LAF).
C Setting a fixed exchange rate for the Indian Rupee.
D Mandatory lending quotas for specific sectors.
6.
What is the primary objective of the Reserve Bank of India's (RBI) new liquidity management framework?
A To increase inflation by injecting more liquidity into the system.
B To manage the overall liquidity in the banking system to achieve monetary policy objectives.
C To reduce the interest rates offered by banks to depositors.
D To encourage banks to lend more to the government.
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