Economy & Business MCQs

The PLI scheme aims to attract investments in the manufacturing of advanced chemistry cell (ACC) batteries and other green technology products, thereby boosting domestic production and exports.

The Repo Rate, Reverse Repo Rate, and Bank Rate are key policy rates announced by the RBI. The Prime Lending Rate is determined by individual banks based on their cost of funds and market conditions.

The RBI Act mandates the MPC to set the policy repo rate to achieve the primary objective of price stability while ensuring that the objective of growth is not neglected.

Open Market Operations (OMO) involve the buying and selling of government securities by the RBI to inject or absorb liquidity from the banking system, directly influencing interest rates and inflation.

Increased investment in manufacturing often leads to the expansion of production facilities, which in turn creates more jobs and employment opportunities.

Production-Linked Incentive (PLI) schemes are a popular government strategy to boost domestic manufacturing by providing incentives based on incremental sales of manufactured goods.

Boosting domestic manufacturing and investment aims to make the country more self-reliant, create jobs, and improve its position in the global economy.

The RBI primarily uses the Consumer Price Index (CPI) for its monetary policy decisions and inflation targeting, as it reflects the prices of goods and services consumed by households.

The RBI's primary mandate includes maintaining price stability, which means closely monitoring inflation, especially during periods of economic recovery when demand can push prices up.