Budget, RBI, banking, inflation, economic indicators
Questions & Answers
Test your understanding of this current affair.
1
Which institution in India is statutorily mandated to regulate monetary policy and set the benchmark repo rate under the RBI Act, 1934?
Answer:
Monetary Policy Committee (MPC) of the Reserve Bank of India
2
What is the primary retail inflation targeting framework mandated for the Reserve Bank of India by the Central Government?
Answer:
Maintain Consumer Price Index (CPI) inflation at 4% with a band of +/- 2%
3
What does the 'Central Bank Digital Currency (CBDC)' or 'e-Rupee' launched by the RBI represent?
Answer:
A sovereign digital currency issued by the Reserve Bank of India in digital form, legal tender equivalent to paper currency
4
Which technological payment platform developed by NPCI recorded milestone transaction volumes exceeding billions per month in India?
Answer:
Unified Payments Interface (UPI)
5
What is the primary purpose of the 'Cash Reserve Ratio (CRR)' maintained by commercial banks with the RBI?
Answer:
To maintain a specified percentage of total deposits as liquid cash reserves with the central bank to control liquidity and ensure safety
6
What does 'Statutory Liquidity Ratio (SLR)' require banks to hold prior to extending credit to customers?
Answer:
A specified percentage of liquid assets like gold, cash, or approved government securities
7
Which document presented annually by the Union Finance Minister outlines the government's estimated financial receipts and expenditures for the upcoming fiscal year?
Answer:
Union Budget (Annual Financial Statement under Article 112)
8
What does 'Fiscal Deficit' represent in the context of government budgetary management?
Answer:
The excess of total government expenditure over total non-borrowed receipts, indicating total borrowing requirements
9
Which index measures wholesale price inflation across commodities traded in primary, fuel, and manufactured product markets in India?
Answer:
Wholesale Price Index (WPI)
10
What is the primary objective of the 'Prompt Corrective Action (PCA)' framework applied by the RBI to commercial banks?
Answer:
To enable supervisory intervention and early corrective action against weak, undercapitalized, or distressed banks
11
Which organization compiles and releases the Index of Industrial Production (IIP) tracking manufacturing, mining, and electricity sectors in India?
Answer:
National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
12
What does 'GST Council' chaired by the Union Finance Minister and comprising state finance ministers decide upon?
Answer:
Goods and Services Tax rates, exemptions, tax thresholds, and administrative modalities across India
13
Which rate is charged by the Reserve Bank of India when it lends overnight funds to commercial banks without collateral?
Answer:
Standing Deposit Facility / Marginal Standing Facility (MSF) rate
14
What does 'Insolvency and Bankruptcy Code (IBC)' enacted in India primarily aim to resolve?
Answer:
Time-bound resolution of insolvency for corporate persons, partnerships, and individuals to revive businesses or liquidate efficiently
15
Which international rating agency frequently assesses India's sovereign credit rating and macroeconomic outlook?
Answer:
Moody's, S&P Global, and Fitch Ratings
16
What does the term 'Green Bonds' issued by the Government of India signify in public financial markets?
Answer:
Sovereign bonds issued to mobilize resources for environmentally sustainable and climate-friendly infrastructure projects
17
Which organization operates the Unified Payments Interface (UPI) infrastructure in India?
Answer:
National Payments Corporation of India (NPCI)
18
What is the primary function of the 'Monetary Policy Report (MPR)' published biannually by the RBI?
Answer:
To explain the macroeconomic assessment and inflation outlook guiding monetary policy decisions
19
What does 'Gross Domestic Product (GDP) Growth Rate' measure in macroeconomic analysis?
Answer:
The annual percentage change in the total monetary value of all goods and services produced within a country
20
Which financial sector regulator in India oversees mutual funds, stock exchanges, and portfolio managers?
Answer:
Securities and Exchange Board of India (SEBI)
21
What is the primary objective of the 'PM Mudra Yojana' regarding micro-entrepreneurs?
Answer:
To provide collateral-free institutional credit up to Rs. 10 lakh under Shishu, Kishore, and Tarun categories to small businesses
22
Which central bank interest rate acts as the benchmark rate for long-term lending by commercial banks in India?
Answer:
Bank Rate / Repo Rate framework
23
What does 'NPAs (Non-Performing Assets)' signify in commercial banking balance sheets?
Answer:
Loans or advances that are in default or arrears, where principal or interest payments have not been made for 90 days
24
Which organization compiles and releases the monthly GST revenue collection data in India?
Answer:
Ministry of Finance, Government of India
25
What is the primary objective of the 'Production Linked Incentive (PLI)' scheme across key manufacturing sectors?
Answer:
To boost domestic manufacturing capacity, attract investments, and enhance export competitiveness by offering financial incentives based on production
26
Which rate does the Reserve Bank of India charge when it provides overnight liquidity to banks against government securities?
Answer:
Repo Rate
27
What does the 'Reverse Repo Rate' signify in the RBI's liquidity management operations?
Answer:
The interest rate at which the RBI borrows funds from commercial banks or parks excess liquidity with itself
28
Which digital initiative launched by the Reserve Bank of India enables feature phone users to make digital payments without internet connectivity?
Answer:
UPI123Pay
29
What is the primary objective of the 'PM Jan Dhan Yojana (PMJDY)' regarding banking access in India?
Answer:
To ensure universal access to banking services with zero-balance savings accounts and overdraft facilities
30
Which international financial institution publishes the biannual 'Global Economic Prospects' report?
Answer:
The World Bank