Economy and Business Current Affairs MCQs - May 2026

Current Affairs & MCQs

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1.

Which of the following is a key characteristic of green bonds, often verified by third-party assurance?

A High coupon rates compared to conventional bonds.

B The use of proceeds for specific, environmentally beneficial projects.

C Guaranteed principal repayment by the government.

D Short maturity periods.

2.

A surge in corporate green bond issuance indicates:

A Increased investor demand for sustainable investments.

B Corporations are shifting away from environmental responsibility.

C A decrease in the availability of traditional financing options.

D Reduced focus on climate change mitigation by businesses.

3.

What is the primary purpose of a green bond issued by a corporation?

A To finance general corporate activities and working capital.

B To fund projects with positive environmental and/or climate benefits.

C To repay existing corporate debt.

D To invest in stock market ventures.

4.

A 'cautious liquidity stance' by the RBI typically implies:

A The RBI is actively injecting large amounts of liquidity into the system.

B The RBI is likely to withdraw liquidity or keep it tight.

C The RBI is focused solely on increasing credit availability.

D The RBI is not concerned about inflation.

5.

Which of the following tools can the RBI use to manage liquidity in the economy?

A Repo Rate and Reverse Repo Rate

B Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

C Open Market Operations (OMOs)

D All of the above

6.

What is the primary objective of the RBI's cautious liquidity stance?

A To stimulate economic growth by increasing money supply.

B To control inflation and maintain financial stability.

C To encourage banks to lend more to the private sector.

D To reduce the government's borrowing costs.