Economy & Business MCQs - 2026-06-24

By boosting exports, the government aims to earn more foreign exchange, which helps in improving the trade balance (exports minus imports) and reducing the current account deficit, thereby strengthening the economy.

High logistics costs, including transportation and warehousing, along with infrastructure bottlenecks, significantly increase the cost of Indian exports, reducing their competitiveness in international markets.

The RoDTEP scheme was introduced to replace MEIS and aims to refund various embedded taxes and duties that were not previously rebated, thereby making Indian exports more competitive.

A cautious stance implies that the RBI is closely monitoring economic indicators and is prepared to adjust its liquidity operations as needed, without committing to an aggressive easing or tightening.

The Reverse Repo Rate is the rate at which the RBI borrows money from commercial banks, effectively absorbing excess liquidity from the system.

The primary objective of RBI's liquidity management is to ensure price stability, which involves managing inflation by controlling the money supply in the economy.