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

The Correct Answer is 50 bps.

In News

• RBI cuts repo rate to 5.5%, shifts policy stance to neutral.

Key Points

• RBI’s Monetary Policy Committee (MPC) reduced the policy repo rate by 50 basis points to 5.5%.

• The Standing Deposit Facility (SDF) rate is now 5.25%.

• The Marginal Standing Facility (MSF) rate and the Bank Rate are adjusted to 5.75%.

• The move is expected to lower External Benchmark Lending Rates (EBLR).

• Banks may reduce their lending rates accordingly.

• The next MPC meeting is scheduled from August 4–6, 2025.

The Correct Answer is 4.8%.

In News

• Govt. meets 4.8% fiscal deficit target for 2024-25.

Key Points

• Fiscal Deficit for FY 2024–25 stood at ₹15.77 lakh crore, 4.8% of GDP, meeting the government's target.

• Total revenue: ₹30.78 lakh crore.

• Net tax revenue: ₹24.99 lakh crore (97.7% of target).

• Disinvestment earnings: ₹10,131 crore, significantly below target.

• Total expenditure: ₹46.55 lakh crore (97.8% of revised estimate).

• Capital expenditure: ₹10.52 lakh crore (long-term investments).

• Revenue expenditure: ₹36.03 lakh crore.

• Fiscal Deficit formula:
  Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Creating Capital Receipts)

The correct answer is Both PayPal and Worldline.

In News

• PayPal and Worldline received in-principle approval from the Reserve Bank of India (RBI) to operate as cross-border payment aggregators.

Key Points

• RBI Approval: Both PayPal and Worldline received RBI approval to facilitate cross-border online transactions.
• Cross-border Payments: This enables the companies to handle imports and exports of goods and services in India.
• Regulatory Change: RBI mandated separate approval for cross-border payment aggregators after October 2024.
• Business Opportunity: The move is crucial for tapping into India's large remittance and freelance service sectors.

Additional Information

• Payment Aggregator License: Previously, cross-border payment companies operated with an Online Payment Gateway Service Provider (OPGSP) license.
• Impact: The RBI approval boosts the global payment network for businesses in India, including large enterprises and freelancers.
• Freelance Sector: India is a hub for freelancers, making the cross-border payment space highly lucrative.
• Regulatory Framework: The Payment and Settlement Systems Act, 2007, governs the approval process for payment aggregators.

The correct answer is Canara Bank.

In News

• Canara Bank, a state-owned institution, recently waived the average monthly balance (AMB) requirement for all its savings bank accounts, effective 1 June 2025.

Key Points

• No Minimum Balance: Canara Bank customers will not be charged for failing to maintain a minimum balance in their savings accounts from 1 June 2025.
• Policy Change: The policy removes penalties and fees associated with failing to maintain the average monthly balance (AMB).
• What is AMB: AMB is the lowest amount a customer must maintain in their account each month to avoid penalties.
• Other Banks: The announcement does not apply to private banks like HDFC, Axis, or SBI, which still have AMB requirements.

Additional Information

• Penalty-Free Accounts: Canara Bank now offers penalty-free savings accounts for customers not maintaining the AMB.
• Customer Benefit: This change is expected to benefit many customers who struggled with maintaining the AMB.
• Banking Trends: While many banks have AMB requirements, Canara Bank’s move sets a precedent for customer-friendly banking policies.

Canara Bank:

• Canara Bank is an Indian public sector bank based in Bangalore, India.
• Established in 1906 at Mangalore by Ammembal Subba Rao Pai.

The Correct Answer is ​₹2.01 lakh crore.

In News

• India’s GST collections in May surge over 16% to ₹2.01 lakh crore.

Key Points

• May 2025 GST collection: ₹2.01 lakh crore.

• Crossed the ₹2 lakh crore mark for the second consecutive month.

• Growth: 16.4% higher than ₹1.72 lakh crore in May 2024.

• April 2025: Record high GST collection of ₹2.37 lakh crore.

• Shows strong economic activity and compliance levels.

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.