Economy & Business Current Affairs MCQs

1.

Government initiatives like Production Linked Incentive (PLI) schemes are designed to boost manufacturing resilience by:

A Increasing import duties on finished goods.

B Providing financial incentives for increased production and exports.

C Reducing the overall tax burden on all businesses.

D Simplifying labor laws to facilitate easier hiring and firing.

2.

Which of the following indicators would typically reflect the resilience of India's manufacturing sector in early 2026?

A A consistent decrease in factory output.

B A rise in the Purchasing Managers' Index (PMI) for manufacturing.

C A decline in new orders and export growth.

D Increased inventory levels indicating sluggish sales.

3.

In early 2026, the resilience shown by India's manufacturing sector is most likely attributed to which of the following factors?

A A significant decline in global demand for manufactured goods.

B Strong domestic demand and government policy support.

C A sharp increase in input costs due to supply chain disruptions.

D Reduced investment in infrastructure and technology.

4.

A 'cautious liquidity stance' by the RBI generally implies that the central bank is aiming to:

A Increase the money supply significantly to boost consumption.

B Keep the availability of credit relatively tight.

C Encourage banks to lend aggressively without much scrutiny.

D Reduce the policy rates to stimulate investment.

5.

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

A Open Market Operations (OMO) for selling government securities.

B Reduction in the Cash Reserve Ratio (CRR).

C Lowering the Reverse Repo Rate.

D Direct lending to public sector undertakings.

6.

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

A To stimulate rapid economic growth by injecting excess liquidity.

B To control inflation and maintain financial stability.

C To encourage increased borrowing by commercial banks.

D To reduce the repo rate to boost investment.

Economy & Business MCQs - 2026-10-26