Economy and Business Current Affairs MCQs

1.

The new manufacturing incentives announced in 2026 are expected to have a positive impact on which of the following sectors?

A Primarily the informal service sector.

B Sectors like electronics, automotive, pharmaceuticals, and textiles.

C Only the financial services sector.

D The agricultural export sector.

2.

Which of the following types of incentives are commonly offered under government manufacturing schemes to attract investment?

A Increased import duties on raw materials.

B Production-Linked Incentives (PLI), tax breaks, and subsidies.

C Restrictions on foreign direct investment (FDI).

D Mandatory technology transfer to state-owned enterprises.

3.

In 2026, what is a likely primary goal of the government's new manufacturing incentive schemes?

A To reduce India's reliance on imported goods and boost domestic production.

B To encourage the service sector to expand its global reach.

C To increase the government's tax revenue in the short term.

D To promote the export of agricultural products.

4.

A cautious liquidity stance by the RBI in 2026 could lead to which of the following consequences for the banking sector?

A Increased availability of credit at lower interest rates.

B Higher borrowing costs for banks and potentially for customers.

C A significant decrease in the Net Interest Margins (NIMs) of banks.

D Encouragement for banks to take on higher risks for better returns.

5.

Which of the following tools is most likely used by the RBI to manage liquidity and maintain its cautious stance in 2026?

A Quantitative Easing (QE).

B Open Market Operations (OMOs) and Reverse Repurchase Agreements (Reverse REPO).

C Direct lending to public sector undertakings.

D Reduction in the Cash Reserve Ratio (CRR) for all banks.

6.

As of early 2026, what is the primary objective of the Reserve Bank of India's (RBI) cautious liquidity stance?

A To stimulate economic growth by increasing money supply.

B To control inflation and maintain price stability.

C To encourage banks to lend more to the private sector.

D To reduce the government's fiscal deficit.

Economy & Business MCQs - 2026-08-30