Which international organization regularly releases projections for India's GDP growth and global economic outlook?
A World Health Organization (WHO)
B International Monetary Fund (IMF)
C United Nations Educational, Scientific and Cultural Organization (UNESCO)
D World Trade Organization (WTO)
Answer: B
The International Monetary Fund (IMF) is a key international organization that regularly publishes economic forecasts, including GDP growth projections for various countries like India, as part of its World Economic Outlook reports.
62.
Which of the following is a major component of India's Gross Domestic Product (GDP) by the expenditure method?
A Foreign exchange reserves
B Government final consumption expenditure
C Public debt
D Inflation rate
Answer: B
The expenditure method of calculating GDP includes Consumption (C), Investment (I), Government Spending (G), and Net Exports (X-M). Government final consumption expenditure falls under 'G'.
63.
What does 'FY27' typically refer to in the context of India's economic data?
A Financial Year 2027 (January 2027 - December 2027)
B Fiscal Year 2026-2027 (April 2026 - March 2027)
C Fiscal Year 2027-2028 (April 2027 - March 2028)
D Financial Year 2026 (April 2025 - March 2026)
Answer: B
In India, the fiscal year (FY) runs from April 1st to March 31st. Therefore, FY27 refers to the period from April 1, 2026, to March 31, 2027.
64.
A new government scheme aimed at boosting MSME exports would most likely include provisions for which of the following?
A Subsidizing imports of luxury goods
B Providing credit guarantees and market development assistance for exporters
C Increasing domestic consumption through tax cuts
D Focusing solely on large-scale industrial production
Answer: B
Schemes to boost MSME exports typically focus on addressing their specific challenges, such as providing easier access to credit, offering credit guarantees, and supporting market development activities like participation in international trade fairs and market research.
65.
Which government body in India is primarily responsible for formulating and implementing foreign trade policy, including measures to promote exports?
A NITI Aayog
B Ministry of Finance
C Directorate General of Foreign Trade (DGFT)
D Reserve Bank of India (RBI)
Answer: C
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, is the nodal agency responsible for formulating and implementing the Foreign Trade Policy (FTP) and related procedures to promote exports and regulate imports.
66.
Which of the following is a common challenge faced by Micro, Small, and Medium Enterprises (MSMEs) in India when attempting to export their products?
A Excessive domestic demand
B Lack of access to export finance and market information
C Surplus of skilled labor
D Over-reliance on advanced technology
Answer: B
MSMEs often struggle with limited access to affordable export finance, lack of awareness about international markets, and complex export procedures, which hinder their ability to compete globally.
67.
If the RBI decides to increase the Repo Rate in its monetary policy review, what is the likely immediate impact on commercial banks' cost of borrowing from the RBI?
A It will decrease.
B It will increase.
C It will remain unchanged.
D It will become volatile.
Answer: B
The Repo Rate is the rate at which commercial banks borrow money from the RBI. An increase in the Repo Rate directly makes borrowing more expensive for commercial banks, which in turn can lead to higher lending rates for consumers and businesses.
68.
Which of the following is a quantitative tool used by the RBI to control liquidity in the economy?
A Moral Suasion
B Cash Reserve Ratio (CRR)
C Direct Action
D Credit Rationing
Answer: B
The Cash Reserve Ratio (CRR) is a quantitative tool where commercial banks are required to keep a certain percentage of their net demand and time liabilities as reserves with the RBI, directly impacting the liquidity available for lending.
69.
What is the primary objective of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) as mandated by law?
A To maintain price stability while keeping in mind the objective of growth.
B To ensure high economic growth at any cost.
C To manage the government's fiscal deficit.
D To regulate the foreign exchange market exclusively.
Answer: A
The primary objective of the MPC, as per the RBI Act, 1934, is to maintain price stability while keeping in mind the objective of growth. This is achieved by targeting a specific inflation rate.
70.
A significant outcome of the 2026 India-ASEAN Strategic Dialogue was the agreement to establish a joint working group on a specific issue. Which issue was it?
A Cybersecurity threats
B Space debris management
C Pandemic preparedness
D Sustainable tourism
Answer: A
Recognizing the growing digital landscape, India and ASEAN agreed to form a joint working group to address cybersecurity threats and enhance digital cooperation in 2026.
