MCQs on India's Economic Outlook: GDP, RBI, and Sectors

1.

What does a high PMI reading generally suggest about the manufacturing sector?

A Decreasing new orders and output

B Improving business conditions and output

C Rising unemployment

D Falling prices of raw materials

2.

For how long has the manufacturing sector's expansion been the strongest, as indicated by the PMI reaching an 18-month high?

A 6 months

B 12 months

C 18 months

D 24 months

3.

What does the recent Purchasing Managers' Index (PMI) data for the manufacturing sector indicate?

A A contraction in manufacturing activity

B A slowdown in manufacturing growth

C A robust expansion in manufacturing

D Stagnation in the manufacturing sector

4.

The term 'status quo' in the context of RBI's monetary policy means:

A A significant reduction in interest rates

B An increase in the cash reserve ratio

C Keeping the existing policy rates unchanged

D Implementing new monetary tools

5.

What primary concern influenced the RBI's decision to maintain the status quo on monetary policy?

A High inflation rates

B Concerns about economic growth

C Appreciation of the Indian Rupee

D Decreasing foreign exchange reserves

6.

In its recent monetary policy review, what decision did the Reserve Bank of India (RBI) take regarding its key policy rates?

A Increased the repo rate

B Decreased the reverse repo rate

C Maintained the status quo

D Introduced a new lending facility

7.

What does the projection of India's GDP growth exceeding 7.5% in FY 2026-27 signify for the Indian economy?

A Economic slowdown

B Robust economic expansion

C Stagnant growth

D Recessionary trends

8.

Which financial year is being referred to when projecting India's GDP growth to exceed 7.5%?

A FY 2024-25

B FY 2025-26

C FY 2026-27

D FY 2027-28

9.

According to recent projections for FY 2026-27, India's GDP growth is expected to exceed what percentage?

A 6.5%

B 7.0%

C 7.5%

D 8.0%

Economy & Business MCQs - 2026-09-14