Daily Quiz — 29 Jun 2026

1. Q1.According to the article on West Asia's economic easing, what has materially reduced upside inflation risk to the RBI's FY27 forecast?

   Reopening of the Strait of HormuzDecline in global crude oil productionReduction in shipping costsIncrease in domestic food supplies
   Explanation: The article explicitly states that the reopening of the Strait of Hormuz has materially reduced upside inflation risk to the RBI's 5.1% FY27 forecast, though energy prices remain elevated due to damaged Gulf infrastructure.

2. Q2.What is the size of the Credit Guarantee Scheme for Microfinance Institutions 2.0, and what percentage of defaults does it cover?

   ₹20,000 crore covering 80% of defaults₹15,000 crore covering 75% of defaults₹25,000 crore covering 90% of defaults₹10,000 crore covering 60% of defaults
   Explanation: The Financial Express article clearly states that the government's Credit Guarantee Scheme for Microfinance Institutions 2.0 is worth ₹20,000 crore and covers up to 80% of defaults on loans to small MFIs.

3. Q3.According to the BIS warning on AI financing, what macroeconomic concern is the artificial intelligence investment boom creating in financial markets?

   Stretched asset valuations and compressed risk premiaExcessive deposit withdrawals from banksRapid decline in foreign exchange reservesCollapse in real estate valuations
   Explanation: The BIS article warns that the AI investment boom is creating stretched asset valuations, compressed risk premia, and increasingly leveraged financing structures that pose systemic financial risks, requiring macroprudential policy action.

4. Q4.What is the size of the umbrella line of credit that India has extended to Seychelles, and in which currency is it denominated?

   ₹1,250 crore denominated in Indian rupees₹1,000 crore denominated in US dollars₹1,500 crore denominated in special drawing rights$1.25 billion denominated in US dollars
   Explanation: The Economic Times article states that India and Seychelles concluded a ₹1,250 crore umbrella line of credit agreement denominated in rupees to fund priority development projects.

5. Q5.What rating and target price has Motilal Oswal assigned to Tata Capital, and what is the key reason cited for the Neutral rating despite strong AUM growth?

   Neutral rating at ₹390 target; meaningful re-rating requires sustained improvement in ROA and ROEBuy rating at ₹450 target; strong AUM growth guarantees upsideSell rating at ₹350 target; AUM growth is unsustainableNeutral rating at ₹390 target; loan book concentration in unsecured segments
   Explanation: Motilal Oswal initiated coverage on Tata Capital with a Neutral rating and ₹390 target price. While the non-bank lender shows strong 29% AUM CAGR, the brokerage notes that meaningful re-rating requires sustained improvement in return on assets and equity, implying current valuation does not justify a higher rating despite growth metrics.

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