MCQs: RBI Monetary Policy & India's Manufacturing PMI (May 2026)

1.

Which of the following is typically surveyed to calculate the Manufacturing PMI?

A Households

B Retail consumers

C Purchasing managers in manufacturing companies

D Government officials

2.

In April 2026, India's Manufacturing PMI reached a multi-year high. What does this signify?

A A contraction in manufacturing output

B A significant improvement and expansion in manufacturing activity

C Stagnation in new orders

D A decrease in employment within the sector

3.

What does the Purchasing Managers' Index (PMI) for manufacturing indicate?

A A decline in manufacturing activity

B The overall health and performance of the manufacturing sector

C Consumer price inflation

D Unemployment rate in the manufacturing sector

4.

Maintaining the repo rate at a certain level is a tool used by the RBI primarily for what purpose?

A To increase inflation

B To manage liquidity and control inflation

C To boost stock market performance

D To reduce government debt

5.

Which institution is responsible for setting the repo rate in India?

A Securities and Exchange Board of India (SEBI)

B Ministry of Finance

C Reserve Bank of India (RBI)

D NITI Aayog

6.

What is the current repo rate maintained by the Reserve Bank of India (RBI) amidst global uncertainties?

A 6.0%

B 6.25%

C 6.5%

D 6.75%

Economy & Business MCQs - 2026-05-01