MCQs - 2026-04

'Withdrawal of accommodation' is a phrase used by the RBI to signal a gradual reduction in the amount of money available in the system, moving towards tighter liquidity.

The repo rate is the rate at which commercial banks borrow money from the RBI. Maintaining it means the cost of this borrowing remains stable.

The RBI's inflation targeting framework aims to keep Consumer Price Index (CPI) inflation within the range of 2% to 6%.

Given the need to balance inflation control and growth support, the MPC is expected to maintain the status quo on the repo rate.

While commodity exports can play a role, a heavy dependence on volatile commodity exports is not typically seen as a stable driver of sustained economic expansion for India, which relies more on domestic demand and services.

Higher GDP growth generally correlates with increased economic activity, leading to more job opportunities and a reduction in poverty levels.

The IMF's mandate includes providing macroeconomic forecasts and offering financial assistance to member countries facing economic difficulties.

Strong domestic demand is consistently identified as a primary driver of India's economic growth by institutions like the IMF.

The IMF has projected India's GDP growth rate for FY27 to be around 6.5% in its latest World Economic Outlook report.

The guidelines highlight the importance of genomic sequencing for rapid identification of resistant strains and for informing public health interventions.