MCQs: RBI Policy & Manufacturing PMI

1.

Which of the following is NOT a component used to calculate the Manufacturing PMI?

A New Orders

B Output/Production

C Employment

D Stock Market Index

2.

Which organization compiles and releases the Manufacturing PMI data for India?

A Reserve Bank of India

B Ministry of Finance

C S&P Global

D NITI Aayog

3.

What does a Manufacturing PMI reading above 50 indicate?

A Economic contraction

B Economic expansion

C No change in economic activity

D High inflation only

4.

Which inflation target range is the RBI mandated to maintain under the flexible inflation targeting framework?

A 3% (+/- 2%)

B 4% (+/- 2%)

C 5% (+/- 1%)

D 2% (+/- 2%)

5.

What is the primary objective of the RBI maintaining a high repo rate amidst inflationary concerns?

A To increase liquidity in the market

B To curb excess demand and control inflation

C To devalue the Indian Rupee

D To encourage government borrowing

6.

Which committee is responsible for deciding the Repo Rate in India?

A Monetary Policy Committee (MPC)

B Financial Stability and Development Council (FSDC)

C Economic Advisory Council

D Public Debt Management Cell

Economy & Business MCQs - 2026-10-16