MCQs on India's Economy: GDP, Inflation, RBI Policy

61.

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

62.

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)

63.

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

64.

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

65.

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

66.

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)

67.

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

68.

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

69.

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

70.

The ESG disclosure norms are primarily aimed at improving which aspect of corporate operations?

A Short-term profit maximization

B Transparency and sustainable business practices

C Reducing corporate tax liabilities

D Increasing executive compensation

Economy & Business MCQs