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MCQs - 2026-07

691.
If corporate sector investment in infrastructure rises in Q2 2026, what does this often signal about the business environment and future economic outlook?
A A lack of confidence in long-term economic prospects.
B Expectations of future economic growth and demand.
C A preference for short-term, speculative investments.
D A contraction in the manufacturing sector.
692.
An increase in corporate infrastructure investment in Q2 2026 is generally considered positive for the economy. Which of the following is a likely positive impact?
A Increased inflation due to higher demand for raw materials.
B Job creation and boost to ancillary industries.
C Reduced demand for logistics and transportation services.
D A decrease in overall economic productivity.
693.
In the second quarter (Q2) of 2026, there was a notable increase in infrastructure investment by the corporate sector. What is a primary driver for such increased investment in infrastructure?
A A decline in global commodity prices, making construction cheaper.
B Government initiatives and policy support for infrastructure development.
C A decrease in demand for infrastructure services.
D Reduced availability of skilled labor in the construction sector.
694.
In the context of 2026, if the RBI maintains the repo rate despite inflationary pressures, what is a likely consequence for the broader economy?
A A significant decrease in consumer spending due to higher borrowing costs.
B Increased liquidity in the banking system, potentially leading to higher inflation.
C A stable or slightly elevated cost of borrowing for businesses and consumers.
D A sharp appreciation of the Indian Rupee against major currencies.
695.
When the RBI maintains the repo rate, it implies that the Monetary Policy Committee (MPC) believes the current monetary stance is appropriate for managing inflation and economic stability in 2026. What is the repo rate typically used for?
A To directly control the exchange rate of the Indian Rupee.
B To influence the cost of borrowing for commercial banks from the RBI.
C To manage the government's debt issuance.
D To set the minimum lending rate for all financial institutions.
696.
In 2026, the Reserve Bank of India (RBI) decided to maintain the repo rate. What is the primary reason cited for this decision, considering ongoing inflationary pressures?
A To stimulate economic growth by making borrowing cheaper.
B To combat persistent inflationary pressures and anchor inflation expectations.
C To increase foreign direct investment inflows.
D To reduce the fiscal deficit of the government.
697.
Which multilateral forum serves as a key platform for India and ASEAN member states to discuss defence and security cooperation, including maritime security challenges in the Indo-Pacific?
A SAARC
B BIMSTEC
C ADMM-Plus
D IORA
698.
Which Indian initiative, often highlighted in dialogues with ASEAN, emphasizes maritime security, economic growth, and cooperation for all in the Indo-Pacific region?
A Act East Policy
B SAGAR (Security and Growth for All in the Region)
C Look West Policy
D Mausam Project
699.
In the context of the India-ASEAN Strategic Dialogue, what is the current level of partnership between India and ASEAN, which was upgraded in recent years?
A Sectoral Dialogue Partnership
B Comprehensive Strategic Partnership
C Strategic Partnership
D Enhanced Partnership
700.
A key aspect of the G7's focus on climate resilience, as consistently emphasized in recent summits, includes:
A Promoting fossil fuel investments
B Developing early warning systems and adaptation measures
C Reducing aid to climate-vulnerable nations
D Discontinuing renewable energy research
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