Economy and Business Current Affairs MCQs

1.

Which of the following is a tool that the RBI might use to manage liquidity in the banking system?

A Fiscal Deficit Management

B Open Market Operations (OMOs)

C Government Bond Issuance

D Taxation Policy

2.

A 'cautious liquidity stance' by the RBI typically implies that the central bank is likely to:

A Inject a large amount of liquidity into the system

B Absorb excess liquidity from the system

C Significantly reduce policy interest rates

D Encourage banks to lend aggressively

3.

In September 2026, the Reserve Bank of India (RBI) maintained a cautious liquidity stance. What is the primary objective of RBI's liquidity management?

A To increase inflation rapidly

B To ensure price stability and support economic growth

C To devalue the Indian Rupee

D To encourage excessive borrowing by commercial banks

4.

A sustained strong Manufacturing PMI reading, as observed in August 2026, is generally a positive indicator for which of the following?

A Inflationary pressures

B Economic growth and employment

C Government debt levels

D Interest rate hikes

5.

Which organization is typically responsible for compiling and releasing the Manufacturing PMI data for India?

A Reserve Bank of India (RBI)

B National Statistical Office (NSO)

C S&P Global

D Ministry of Finance

6.

In August 2026, India's Manufacturing Purchasing Managers' Index (PMI) remained strong. What does a PMI reading above 50 generally indicate?

A A contraction in manufacturing activity

B No change in manufacturing activity

C An expansion in manufacturing activity

D A stagnation in manufacturing output

Economy & Business MCQs - 2026-09-01