Economy & Business MCQs

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.

Strong domestic demand and government-led capital expenditure (infrastructure) are currently the primary engines of India's economic growth.

GDP projections help the government in estimating tax revenues and planning expenditure for the upcoming fiscal periods.

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation, is responsible for calculating and releasing GDP data.

Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.

Maintaining the repo rate indicates a neutral stance, aiming to keep liquidity conditions stable to balance inflation and growth.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, tasked with fixing the benchmark policy interest rate.

Manufacturing has the highest weightage in the IIP, accounting for approximately 77.6% of the total index.

The current base year for the Index of Industrial Production (IIP) in India is 2011-12.