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MCQs - 2026-04

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3631.
Which of the following is a key objective of India's recent e-commerce policy reforms?
A To exclusively promote large e-commerce marketplaces.
B To ensure fair competition, consumer protection, and data privacy.
C To discourage the use of digital payments.
D To limit the participation of small and medium-sized enterprises (SMEs).
3632.
What does it mean for the RBI to 'anchor inflation expectations'?
A To encourage people to expect higher inflation.
B To influence public and business expectations about future inflation to keep them stable and aligned with the target.
C To ignore public expectations about inflation.
D To allow inflation expectations to rise unchecked.
3633.
The RBI's target band for Consumer Price Index (CPI) inflation in India is currently:
A 0-2%
B 2-6%
C 4-8%
D 6-10%
3634.
Persistent high inflation can lead to which of the following consequences?
A Increased purchasing power of money
B Erosion of purchasing power and reduced savings
C Stimulation of long-term investment
D Economic stability
3635.
Which of the following is a key tool used by the RBI to manage liquidity and influence interest rates in the economy?
A Fiscal Deficit
B Repo Rate
C Gross Domestic Product (GDP)
D Balance of Trade
3636.
What is the primary objective of the Reserve Bank of India (RBI) regarding inflation?
A To maintain a high rate of inflation to stimulate spending.
B To ensure price stability by keeping inflation within a target band.
C To encourage deflation to increase purchasing power.
D To allow inflation to fluctuate freely without intervention.
3637.
A more resilient supply chain for India can lead to:
A Increased inflationary pressures
B Reduced availability of essential goods
C Greater economic independence and reduced vulnerability to single-country risks
D Decreased job creation
3638.
What is a potential challenge for India in fully capitalizing on its strategic positioning in global supply chains?
A Excessive foreign investment
B Need for further improvements in logistics and reduction of regulatory hurdles
C Over-reliance on domestic demand
D Lack of government support
3639.
Sectors like electronics manufacturing, pharmaceuticals, and automotive components are witnessing increased interest in India due to the global shift towards supply chain resilience. This indicates:
A A decline in global demand for these products.
B India's potential to become a significant player in these global value chains.
C A move away from manufacturing these goods globally.
D Increased reliance on single-country sourcing for these sectors.
3640.
Which of the following is a key factor contributing to India's attractiveness as a diversified manufacturing hub?
A Limited domestic market size
B Complex regulatory environment
C Proactive government policies like PLI schemes and infrastructure development
D Lack of a skilled workforce
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