What is the role of the Reserve Bank of India (RBI) in monetary policy?

Controlling the money supply through interest rates Setting foreign exchange rates Regulating the stock market Managing government debt

What is the impact of high interest rates on corporate borrowing and economic growth?

High interest rates encourage borrowing and accelerate economic growth. High interest rates discourage borrowing and slow down economic growth. High interest rates have no significant impact on borrowing or economic growth. High interest rates lead to increased inflation and economic instability.

Which of the following is a key RBI rate that influences borrowing costs for banks?

Repo Rate Reverse Repo Rate Cash Reserve Ratio (CRR) Inflation Rate

What does an increase in the Cash Reserve Ratio (CRR) indicate for the economy?

Increased money supply and economic growth Reduced money supply and potential economic slowdown No significant impact on the money supply or economy Increased inflation and reduced purchasing power

What is the primary objective of the Index of Industrial Production (IIP)?

To measure inflation trends in the economy To assess business sentiment and economic outlook To track the progress of the industrial sector To monitor changes in consumer spending patterns

What does a Purchasing Managers' Index (PMI) reading above 50 signify?

Economic expansion and growth Economic contraction and slowdown Economic stagnation with no significant change Increased inflation and rising prices

How does the stock market typically react to corporate earnings that exceed street expectations?

The stock price tends to increase. The stock price tends to decrease. The stock price remains relatively stable. The stock price becomes highly volatile.