Economy and Business Current Affairs MCQs

41.

Which of the following is a common and effective method for the government to fund large-scale infrastructure projects?

A Public-Private Partnerships (PPPs)

B Reducing all social welfare schemes to reallocate funds

C Increasing subsidies for consumers across all sectors

D Decreasing corporate taxes significantly to encourage private funding only

42.

A major infrastructure investment plan by the government typically aims to achieve which of the following objectives?

A Enhance productivity, improve logistics, and boost overall economic competitiveness

B Primarily reduce the fiscal deficit through immediate revenue generation

C Increase direct foreign investment only in the financial sector

D Decrease employment opportunities in traditional sectors

43.

When the RBI adopts a tight monetary policy to combat inflation, what is a likely consequence for the economy?

A Higher interest rates and reduced liquidity

B Lower interest rates and increased liquidity

C Increased government spending and fiscal deficit

D Reduced tax rates to stimulate demand

44.

What is the primary mandate of the Monetary Policy Committee (MPC) of the RBI, especially when inflation control is the focus?

A Maintain price stability while keeping in mind the objective of growth

B Promote economic growth at any cost

C Manage foreign exchange reserves exclusively

D Regulate the banking sector's day-to-day operations

45.

In its latest monetary policy review, if the RBI aims to control inflation, what action is it most likely to take regarding the Repo Rate?

A Increase the Repo Rate

B Decrease the Repo Rate

C Keep the Repo Rate unchanged

D Introduce a new type of interest rate

46.

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

47.

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

48.

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

49.

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

50.

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

Economy & Business MCQs