Economy & Business MCQs

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), is responsible for collecting, compiling, and releasing GDP data in India.

The Monetary Policy Committee (MPC) is mandated to meet at least four times a year, but typically meets six times a year, i.e., bi-monthly, to review the monetary policy.

The Monetary Policy Committee (MPC) consists of six members: three officials from the Reserve Bank of India and three external members nominated by the Government of India.

The primary objective of the Monetary Policy Committee (MPC) of the Reserve Bank of India is to maintain price stability while keeping in mind the objective of growth. The inflation target is currently set at 4% with a tolerance band of +/- 2%.

Companies invest heavily in infrastructure when they anticipate future economic expansion, increased demand for goods and services, and a favorable environment for long-term returns on their capital.

Infrastructure projects are labor-intensive and require a vast supply chain, leading to significant job creation and growth in related sectors like cement, steel, and transportation.

Government policies, incentives, and public-private partnerships are crucial for encouraging corporate investment in infrastructure projects, which often require significant capital and long gestation periods.

Maintaining the repo rate suggests that borrowing costs are not expected to decrease significantly. This implies that businesses and consumers will continue to face current borrowing costs, which might be elevated due to inflationary concerns.

The repo rate is the rate at which the RBI lends money to commercial banks. Changes in the repo rate influence the cost of funds for banks, which in turn affects lending rates across the economy.

The RBI often maintains interest rates, even when growth is a concern, if inflation remains above its target. Keeping the repo rate steady helps to manage inflation expectations and prevent prices from rising further.