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Economy & Business MCQs - 2026-04-24

1.
What is a potential implication of strong growth in India's manufacturing sector for the overall economy?
A Increased inflation without corresponding economic growth.
B Higher unemployment rates.
C Job creation and a boost to GDP growth.
D Reduced foreign direct investment (FDI).
2.
Which factors are likely contributing to the strong growth in India's manufacturing sector in Q1 2026?
A Decreased government spending on infrastructure.
B Weakening global demand for manufactured goods.
C Favorable government policies and increased domestic demand.
D Rising raw material costs and supply chain disruptions.
3.
What indicates the strong growth recorded by India's manufacturing sector in Q1 2026?
A A decline in manufacturing exports.
B An increase in the Purchasing Managers' Index (PMI) for manufacturing.
C A decrease in industrial production.
D Reduced investment in manufacturing infrastructure.
4.
The new liquidity management framework for NBFCs is expected to impact which aspect of their operations the most?
A Their marketing strategies.
B Their capital adequacy ratios.
C Their asset-liability management and risk management practices.
D Their branch expansion plans.
5.
Which of the following is a key component of the RBI's new liquidity management framework for NBFCs?
A Mandatory reduction in asset size for all NBFCs.
B Introduction of a liquidity risk monitoring framework with specific metrics.
C A complete ban on lending to the housing sector.
D Requirement for NBFCs to hold a minimum of 50% of their assets in cash.
6.
What is the primary objective of the new liquidity management framework introduced by the RBI for NBFCs?
A To increase the lending rates for NBFCs.
B To enhance the resilience of NBFCs to liquidity shocks and ensure financial stability.
C To reduce the regulatory burden on NBFCs.
D To encourage NBFCs to invest in government securities.
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