If India's inflation rate continues to rise marginally in 2026, what is a potential consequence for consumers?
A Increased purchasing power of their savings.
B Reduced real value of money and decreased purchasing power.
C Lower prices for essential goods and services.
D Greater incentive to save money in bank accounts.
Answer: B
Inflation erodes the purchasing power of money. When prices rise, each unit of currency buys fewer goods and services, meaning consumers can afford less with the same amount of money. This reduces the real value of their savings and income.
62.
A marginal increase in India's inflation rate in 2026 could be attributed to several factors. Which of the following is a common cause of demand-pull inflation?
A A significant decrease in consumer spending.
B An increase in the supply of goods and services.
C Increased government spending or a surge in private investment.
D A decrease in aggregate demand.
Answer: C
Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply. Increased government spending or a surge in private investment can lead to higher overall demand, pushing prices up.
63.
In early 2026, India's inflation rate, as measured by the Consumer Price Index (CPI), showed a marginal increase. What is the typical primary tool used by the Reserve Bank of India (RBI) to manage inflation?
A Fiscal Deficit Management
B Monetary Policy Tools (e.g., Repo Rate)
C Direct Price Controls
D Export-Import Policy Adjustments
Answer: B
The RBI primarily uses monetary policy tools, such as adjusting the repo rate, reverse repo rate, and cash reserve ratio, to influence liquidity and credit conditions in the economy, thereby managing inflation.
64.
Which of the following policy measures, considered by the government in 2026, would directly support the development of advanced manufacturing capabilities?
A Imposing stricter environmental regulations without providing compliance support.
B Investing in R&D and providing tax credits for technology adoption.
C Reducing funding for skill development programs.
D Discouraging collaborations between industry and academia.
Answer: B
Investing in Research and Development (R&D) and offering tax credits for adopting new technologies are crucial for fostering innovation and developing advanced manufacturing capabilities. The other options would likely hinder such development.
65.
The government's focus on boosting the manufacturing sector in 2026 is likely aligned with which national economic objective?
A Increasing reliance on imported goods.
B Reducing unemployment and promoting 'Make in India'.
C Decreasing foreign direct investment (FDI).
D Promoting a service-dominated economy at the expense of manufacturing.
Answer: B
Boosting the manufacturing sector is a key strategy to create jobs, reduce unemployment, and enhance domestic value addition, which are central to the 'Make in India' initiative and broader economic growth.
66.
In 2026, the Indian government is considering new incentives to boost the manufacturing sector. Which of the following is a likely component of such an incentive scheme, aimed at promoting domestic production?
A Increased import duties on essential raw materials.
B Reduction in corporate tax rates for manufacturing units.
C Mandatory export quotas for all manufactured goods.
D Abolition of all subsidies for the sector.
Answer: B
Reducing corporate tax rates for manufacturing units is a common and effective incentive to encourage investment and expansion in the sector, thereby boosting domestic production. Increased import duties on raw materials would likely hinder manufacturing, while mandatory export quotas and abolition of subsidies would be counterproductive.
67.
According to the RBI's 2026 framework for digital lending, what is the prescribed cooling-off period for a borrower to withdraw from a loan agreement without penalty?
A 24 hours
B 48 hours
C 7 days
D 14 days
Answer: B
The RBI's 2026 guidelines mandate a cooling-off period of 48 hours for borrowers to withdraw from a digital loan agreement without incurring any penalty, providing them with a window to reconsider their decision.
68.
The RBI's 2026 guidelines on digital lending aim to protect borrowers. Which of these is a key objective related to data privacy and security?
A Allowing LSPs to collect borrower data for marketing purposes without consent.
B Ensuring that DLAs do not store sensitive customer data on their servers.
C Requiring explicit consent from borrowers before collecting any personal data.
D Permitting data sharing with third-party credit bureaus without borrower knowledge.
Answer: C
A core principle of the RBI's 2026 digital lending guidelines is enhanced data privacy. Lenders must obtain explicit consent from borrowers before collecting any personal data, ensuring transparency and control over their information.
69.
As per the latest guidelines issued by the Reserve Bank of India (RBI) in 2026 for digital lending platforms, which of the following is NOT a mandatory requirement for a Digital Lending App (DLA)?
A Disclosure of all-in-cost of loan to the borrower.
B Appointment of a Chief Compliance Officer (CCO) by the Lending Service Provider (LSP).
C Mandatory registration of all Lending Service Providers (LSPs) with the RBI.
D Prohibition of automatic credit limit enhancement without explicit consent.
Answer: B
The RBI's 2026 guidelines mandate that Lending Service Providers (LSPs) must appoint a Chief Compliance Officer (CCO) responsible for ensuring adherence to regulatory requirements. Therefore, the appointment of a CCO is a mandatory requirement, making option B incorrect.
70.
The ASEAN Summit's discussions on regional economic integration often include the implementation and expansion of major free trade agreements. Which of the following is a significant agreement involving ASEAN that aims to foster broader regional economic ties?
A North American Free Trade Agreement (NAFTA)
B Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
C Regional Comprehensive Economic Partnership (RCEP)
D European Union (EU) single market
Answer: C
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. It is the world's largest trade bloc and a key focus for ASEAN's broader economic integration efforts.
