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MCQs - 2026-04

3101.
Which of the following is a key payment system developed in India that has revolutionized mobile-based transactions?
A SWIFT
B RTGS
C NEFT
D Unified Payments Interface (UPI)
3102.
The term 'withdrawal of accommodation' in monetary policy typically signifies:
A An expansionary monetary policy stance.
B A neutral monetary policy stance.
C A tightening monetary policy stance, aiming to reduce liquidity.
D A focus solely on increasing economic growth.
3103.
The current inflation target band for the RBI is generally considered to be:
A 0-2%
B 2-6%
C 4-8%
D 6-10%
3104.
If the RBI's MPC decides to increase the policy repo rate, what is the most likely immediate effect on the economy?
A Increased liquidity and lower borrowing costs.
B Reduced liquidity and higher borrowing costs for consumers and businesses.
C Stimulated investment and consumption.
D Decreased inflation due to increased money supply.
3105.
Which body is responsible for setting the policy repo rate in India?
A The Ministry of Finance.
B The Securities and Exchange Board of India (SEBI).
C The Monetary Policy Committee (MPC).
D The NITI Aayog.
3106.
The primary objective of the Reserve Bank of India (RBI) as per its mandate is to:
A Maximize economic growth at all costs.
B Maintain price stability while keeping in mind the objective of growth.
C Ensure a fixed exchange rate for the Indian Rupee.
D Regulate the stock market exclusively.
3107.
The target fiscal deficit of 4.5% of GDP by FY26 is significant for India primarily because it:
A Guarantees immediate economic growth of 10% annually.
B Signals fiscal discipline to investors and rating agencies.
C Eliminates the need for any government borrowing.
D Leads to a complete removal of indirect taxes.
3108.
Which of the following is a key strategy for the Indian government to achieve its fiscal consolidation targets?
A Increasing non-essential government expenditure.
B Reducing tax compliance and revenue collection.
C Improving tax compliance and managing expenditure prudently.
D Increasing reliance on deficit financing without any revenue augmentation.
3109.
A reduction in India's fiscal deficit is likely to lead to:
A Increased inflation and higher interest rates.
B Reduced government borrowing and potentially lower interest rates.
C Decreased foreign direct investment.
D Higher taxes on essential goods.
3110.
What does a fiscal deficit represent?
A The total revenue of the government in a financial year.
B The difference between government expenditure and its total revenue (excluding borrowings).
C The amount of money borrowed by the government from foreign countries.
D The surplus generated by public sector undertakings.