UPSC Economy MCQs: RBI Rate, GDP, Manufacturing

181.

The new liquidity management framework by RBI is expected to enhance the transmission of monetary policy by:

A Reducing the volatility of short-term interest rates

B Increasing the cost of borrowing for banks

C Limiting the availability of credit

D Making the policy rate less predictable

182.

Which of the following is a key component of the RBI's new liquidity management framework?

A Introduction of a fixed repo rate for all banks

B A more dynamic approach using various instruments

C Elimination of the Marginal Standing Facility (MSF)

D A single policy rate for all liquidity operations

183.

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

A To increase inflation

B To manage systemic liquidity effectively

C To reduce interest rates

D To encourage excessive borrowing

184.

What does a PMI reading above 50 generally indicate for a manufacturing sector?

A Contraction in activity

B No change in activity

C Expansion in activity

D Stagnation

185.

Which of the following factors contributed to the record high manufacturing PMI in India in May 2026?

A Decline in new orders and production

B Increase in input costs and subdued demand

C Robust growth in new orders and production

D Reduction in export sales

186.

What was the Purchasing Managers' Index (PMI) for India's manufacturing sector in May 2026, as reported to be a record high?

A 61.7

B 63.7

C 62.7

D 60.7

187.

Which government agency is primarily responsible for releasing official GDP data for India?

A Reserve Bank of India (RBI)

B Ministry of Finance

C National Statistical Office (NSO)

D Securities and Exchange Board of India (SEBI)

188.

When India's GDP growth exceeds expectations, it generally indicates:

A A slowdown in economic activity.

B Increased economic resilience and potential for higher future growth.

C A need for tighter monetary policy to cool down the economy.

D A decrease in employment opportunities.

189.

India's Gross Domestic Product (GDP) growth in the fourth quarter (Q4) of the financial year (FY) 2025-26 has surpassed initial projections. Which of the following is a likely contributing factor to this robust growth?

A A significant decline in agricultural output due to adverse weather conditions.

B Strong performance in the services sector and increased capital expenditure.

C A sharp contraction in manufacturing due to supply chain disruptions.

D Reduced consumer spending due to high inflation.

190.

What is the repo rate?

A The rate at which commercial banks lend to the public.

B The rate at which the RBI lends to commercial banks against government securities.

C The rate at which commercial banks lend to each other overnight.

D The rate at which the RBI borrows from the government.

Economy & Business MCQs