Economy & Business MCQs

Reports indicate that sectors like IT services, banking, financial services, and automobiles have demonstrated strong performance and resilience in their Q4 earnings, defying earlier concerns.

The revised estimates for FY2023-24 projected the fiscal deficit at 5.8% of GDP, indicating a slight deviation from the initial budget target but still within a manageable range.

The government's strategy involves improving the efficiency of public spending, enhancing the quality of expenditure, and rationalizing subsidies to control the fiscal deficit.

The interim budget presented by the Finance Minister set the fiscal deficit target for FY2024-25 at 5.1% of GDP. However, the glide path aims to bring it down to 4.5% by FY2025-26.

By shifting to green energy, companies can lower their energy expenses over time, hedge against rising fossil fuel costs, and improve their public image by demonstrating commitment to sustainability.

Corporates are heavily investing in renewable energy generation like solar and wind, as well as crucial supporting infrastructure such as battery storage to ensure grid stability and reliability.

Government policies, the growing emphasis on Environmental, Social, and Governance (ESG) factors by corporations, and the declining costs of solar and wind power technologies are key reasons for this investment surge.

The framework aims to equip the RBI to manage both short-term, transient liquidity issues and more persistent, structural imbalances in the financial system.

While government bond issuance is a fiscal operation, liquidity management by the RBI primarily uses tools like OMOs, repo/reverse repo, and CRR/SLR adjustments to influence money supply and interest rates.

The new framework aims to enhance the RBI's ability to absorb or inject liquidity as needed, thereby stabilizing money markets and ensuring the smooth transmission of monetary policy.