MCQs - 2026-08

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.

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.

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.

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.

India's 'Act East Policy' is the overarching framework for its engagement with ASEAN and other East Asian countries, focusing on connectivity and economic ties.

Maritime security in the Indo-Pacific and cooperation in the rapidly growing digital economy were central themes of the 2026 India-ASEAN Strategic Dialogue.

Accelerating the deployment of renewable energy sources is a critical component of the G7's strategy to combat climate change and is a major focus of the 2026 initiative.

The G7 committed to mobilizing $1 trillion in climate finance by 2030 through the Green Transition Partnership.

The 'Green Transition Partnership' was announced by G7 leaders in 2026 to accelerate climate action and finance in developing nations.

Russia has historically expressed concerns about sanctions and their impact on global stability, making it a plausible abstainer in such a scenario in 2026.