Business and Economy MCQ Quiz - Objective Question with Answer for Business and Economy - Download Free PDF

The Correct Answer is ​Nirmala Sitharaman.

In News

• FSDC Meeting: FM Sitharaman Emphasises Citizen-Centric Refund Process for Unclaimed Financial Assets.

Key Points

• Union Finance Minister Nirmala Sitharaman chaired the 29th Financial Stability and Development Council (FSDC) meeting in Mumbai.

• Emphasis was laid on citizens’ interest and a smooth refund process.

• Key topics discussed included:

  • Improving macro-financial stability

  • Streamlining and digitising KYC norms, especially for NRIs

  • Reducing unclaimed financial assets

  • Strengthening cybersecurity

  • Enhancing investment flows

  • Using the Account Aggregator Network effectively

• A call for stronger inter-agency coordination to develop India’s financial ecosystem.

The Correct Answer is ​January 16, 2025.

In News

• RBI Discontinues Daily VRR Auctions Amid Rs 3 Lakh Crore Liquidity Surplus.

Key Points

• The Reserve Bank of India (RBI) has discontinued daily Variable Rate Repo (VRR) auctions starting June 10, 2025.

• Reason: There is a liquidity surplus in the banking system, around ₹2.75–3 lakh crore.

• Daily VRR auctions were started on January 16, 2025 to handle short-term liquidity tightness.

• Low demand was seen recently — only ₹3,711 crore borrowed on June 9 and ₹3,853 crore on June 10, against ₹25,000 crore offered.

• RBI recently cut the Cash Reserve Ratio (CRR) by 100 basis points, expected to release ₹2.5 lakh crore in phases.

• Other tools like 14-day VRR, Open Market Operations (OMO), and Standing Deposit Facility (SDF) will continue to be used for liquidity management.

The correct answer is 37%.

Key Points

• India's Female Labour Force Participation Rate (LFPR) rose to 37% in 2022-2023 from 23.3% in 2017-2018, showing significant progress.
• The increase in FLFPR is largely driven by rural India, highlighting the growing role of women in the rural economy.
• Educational and skill development initiatives, alongside government programs like PM Jan Dhan Yojana, have contributed to this rise.
• Despite this rise, India's FLFPR is still lower than the global average, indicating room for further improvement in female labor force participation.

Additional Information

• Pradhan Mantri Jan Dhan Yojana (PMJDY)
  PMJDY has helped open 52.3 crore bank accounts, with over 55% of these accounts held by women, contributing to their financial inclusion.
• Deendayal Antyodaya Yojana - NRLM
  The NRLM, which covers over 89 million women under 8.3 million Self-Help Groups (SHGs), empowers women through financial independence and social empowerment.
• Women Entrepreneurship
  The Start-up and Stand-up India initiatives have significantly boosted female entrepreneurship, with 68% of loans under PM Mudra Yojana and 77.7% under Stand-Up India going to women.
• Digital India
  Over 53% of beneficiaries in the Prime Minister's Rural Digital Literacy Campaign (PMGDISHA) are women, enhancing their digital literacy and access to online opportunities.

The correct answer is 2 and 3.

In News

• Shri T. Rabi Sankar has been reappointed for a period of one year, effective from May 3, 2025.
• His responsibilities cover critical areas such as foreign exchange management, digital payment systems, and currency management.
• He also serves as the Chairman of the Institute for Development & Research in Banking Technology (IDRBT).

Key Points

• The reappointment ensures continuity in leadership at the RBI, particularly in crucial areas like digital payments and foreign exchange management.
• Shri Sankar plays an essential role in RBI’s digital and financial infrastructure, alongside his responsibilities at IDRBT.
• He is expected to provide valuable expertise and stability in his reappointed role, enhancing RBI's operational efficiency.
• His reappointment is in line with ensuring stability within the RBI leadership, with responsibilities across several significant areas of banking.

Additional Information

• RBI Leadership
  • Leadership continuity in central banking is crucial for maintaining financial stability and ensuring effective policy implementation.
• IDRBT
  • The IDRBT plays a crucial role in research and development in banking technology, impacting banking sector advancements.
• Foreign Exchange Management
  • Foreign exchange management is essential for ensuring the stability of India's currency and financial systems.

The correct answer is 1 and 2.

In News

• Headline inflation in March 2025 moderated to 3.3%, which was the lowest in 67 months, primarily due to moderating food prices.
• The RBI’s Standing Deposit Facility (SDF) has become a key tool for liquidity management, replacing the fixed-rate reverse repo to address liquidity deficits.
• The Rural Consumer Confidence Survey (RCCS) now covers 100 districts, not 250, with 9,000 households sampled in total.

Key Points

• The low headline inflation in March 2025 reflects successful monetary management and improved food prices.
• The SDF is increasingly used by RBI to manage liquidity efficiently in the Indian banking system.
• The RCCS data provides a valuable gauge of rural sentiment, indicating optimism despite inflationary concerns.
• Inflation and rural consumer sentiment are important indicators for policymakers, influencing decisions on interest rates and fiscal policy.

Additional Information

• SDF
  • The Standing Deposit Facility (SDF) is an overnight deposit tool introduced by RBI to provide a collateral-free liquidity management mechanism for banks.
• Inflation Management
  • Effective inflation management is crucial to ensure economic stability and maintain consumer purchasing power.
• Rural Consumer Confidence
  • RCCS measures rural households' perceptions of the economy, inflation, income levels, and employment.

The correct answer is 974 crore.

Key Points

• The central government has allocated Rs 3062.60 crore for the financial year 2022-23, an increase of Rs 305.58 crore.
• In the previous financial year, the government had allocated Rs 2596.14 crore for sports, which was later revised to Rs 2757.02 crore. 
• The financial allocation towards the Khelo India programme, which got Rs 657.71 crore in the last budget, was increased to Rs 974 crore.

Additional Information

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is the National Payments Corporation of India.

• ​​Taking the first step towards having a digital currency in the country, PM Modi will launch an electronic voucher-based digital payment system “e-RUPI”.
• The platform, which has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority, will be a person-specific and purpose-specific payments system

Key Points

• e-RUPI:
  • e-RUPI is a cashless and contactless digital payments medium, which will be delivered to the mobile phones of beneficiaries in form of an SMS string or a QR code. 
  • This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking. 
  • e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

Important Points

• significance of e-RUPI
  • The government is already working on developing a central bank digital currency and the launch of e-RUPI could potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital currency. 
  • In effect, e-RUPI is still backed by the existing Indian rupee as the underlying asset and the specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system.
  • Also, the ubiquitousness of e-RUPI in the future will depend on the end-use cases.
  • On the other hand, central bank digital currency or CBDC — digital currencies issued by a central bank that generally take on a digital form of the nation’s existing fiat currency

The correct answer is  PM's Development Initiative for North-East (PM-DevINE).

Key Points

• A new scheme, Prime Minister's Development Initiative for North-East, PM-DevINE has been announced by the Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2022-23 on 01 February 2022.
• The PM-DevINE will be implemented through the North-Eastern Council.
• An initial allocation of Rs 1,500 crore will be made for the new scheme.
• It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the North-East

The correct answer is Vijaya Bank and Dena Bank.

Key Points 

• Bank of Baroda became the third largest bank after the amalgamation.
• State Bank of India (SBI) and ICICI Bank are the largest banks in India.
• The government of India proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda on 17th September 2018.
• Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda after the amalgamation.
• It was the first-ever three-way consolidation of banks in India.
• The Government of India nationalized the Bank of Baroda on 19 July 1969.
• The headquarters of the Bank of Baroda is located at Vadodara in Gujarat.

Additional Information

• Syndicate bank merged with Canara Bank In 2019.
• Allahabad Bank merged with Indian bank In 2019.
•  Andhra Bank and Corporation Bank merged with Union Bank of India in 2019.

• Amazon became the second to hit $900 billion market capitalisation after Apple.
• Amazon is an e-Commerce company based in Seattle in the United State of America.
• Its founder Jeff Bezos is the richest person on the earth.

The correct answer is Ease of Doing Business.

Key Points

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is Digital Sansad App.

Key Points

• The Parliament has launched a new app, Digital Sansad, that will make it easier for people to follow proceedings in Parliament, and also their own lawmakers.
• In addition, it will also help members of parliament access services such as checking personal updates.
• In the future, the MPs can log in for attendance, give questions for the Question Hour, or submit notices for debates.

The correct answer is option 4.

In News

• PIB News: President of India presents the National Panchayat Awards and inaugurates the National Conference on Incentivization of Panchayats.

Key PointsGS NIRNAY mobile app:

• The GS NIRNAY, National Initiative for Rural India to Navigate, InnovAte and Resolve PanchaYat decisions, a mobile application of the Ministry of Panchayati Raj. Hence option 4 is correct.
• It is aimed at empowering rural communities during the National Conference.
• It enables easy access to critical information discussed during a Gram Sabha; acting as a means of verification of facts where necessary or in case of queries that may arise regarding the resolutions undertaken during the Gram Sabha.
• This would bring in more transparency and increase efficiency in the functioning of Panchayats, which play a vital role in decentralized participatory democracy.

The correct answer is India.

Key Points

• India has the highest number of bank branches in the world.
• India is leading in the list prepared by the number of bank branches in the world based on an IMF report published in 2015.
• India has more than 1.2 lakh bank branches.
• China has the second-largest number of bank branches in the world with over 95,680 bank branches.
• Colombia stood in the third position on the list with over 94,074 bank branches.
• RBI data published in 2016 shows that India now has over 1.3 lakh bank branches.
• There only 13.54 bank branches per 1 lakh adults in India while compared to its population size.

Additional Information

• The Bank of Hindustan is the first bank in India.
• Punjab National Bank is the first complete indigenous bank in India.
• City Union Bank is the first private bank in India.

The correct answer is the International Monetary Fund.

Key Points

Rapid Financing Instrument (RFI) :

• It provides rapid financial assistance, which is available to all member countries facing an urgent balance of payments need.
• It was created as part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries.
• It replaced the IMF’s previous emergency assistance policy and can be used in a wide range of circumstances.

Rapid Credit Facility (RCF) :

• It provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex-post conditionality where a full-fledged economic program is neither necessary nor feasible.
• It was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis.

There are three windows under RCF:

• A regular window for urgent BoP needs to be caused by a wide range of sources including domestic instability, emergencies and fragility;
• An exogenous shock window for urgent BoP needs to be caused by a sudden, exogenous shock; and
• A large natural disaster window for urgent BoP needs arising from natural disasters where damage is assessed to be equivalent to or exceeding 20 percent of the member’s GDP.
• Access under the RCF is subject to annual and cumulative limits, with higher access limits applying for the large natural disaster window.
• For non-PRGT eligible countries, a similar Rapid Financing Instrument (RFI) is available for higher-income countries.Hence, Option 2 is correct.

Additional Information

• International Monetary Fund (IMF):
  • The formation of the IMF was initiated in 1944 at the Bretton Woods Conference.
  • IMF came into operation on 27th December 1945 and is today an international organization that consists of 190 member countries.
  • Headquartered in Washington, D.C., IMF focuses on fostering global monetary cooperation, securing financial stability, and facilitating and promoting international trade, employment, and economic growth around the world.
  • The IMF is a specialized agency of the United Nations.