Economy and Business Current Affairs MCQs

1.

The new liquidity management framework implemented by the RBI is expected to enhance the effectiveness of monetary policy transmission. What does 'monetary policy transmission' refer to?

A The process of government spending impacting the economy

B How changes in the policy repo rate affect interest rates and inflation

C The speed at which new currency notes are printed

D The impact of international trade on domestic prices

2.

Which of the following is a tool typically used by the RBI for liquidity management?

A Fiscal Deficit Calculation

B Open Market Operations (OMOs)

C Government Bond Issuance

D Corporate Tax Rate Adjustment

3.

What is the primary objective of the Reserve Bank of India's (RBI) liquidity management framework?

A To control the exchange rate of the Indian Rupee

B To manage the overall money supply and credit conditions in the economy

C To regulate the stock market

D To oversee the fiscal policy of the government

4.

Which organization typically compiles and releases the Manufacturing PMI data for India?

A Reserve Bank of India (RBI)

B National Statistical Office (NSO)

C S&P Global (formerly IHS Markit)

D Ministry of Finance

5.

According to recent reports, India's Manufacturing PMI reached a six-month high. What does a PMI reading above 50 generally indicate?

A Contraction in manufacturing activity

B Expansion in manufacturing activity

C Stagnation in the manufacturing sector

D A decline in new orders

6.

What does the Purchasing Managers' Index (PMI) measure?

A Overall economic growth of a country

B Manufacturing sector activity and economic health

C Inflation rate in the services sector

D Unemployment rate in the industrial sector

Economy & Business MCQs - 2026-05-06