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MCQs 2026

31.
What factors contribute to India's attractiveness for sustained Foreign Direct Investment inflows?
A Limited market size and low consumer spending
B Complex regulatory environment and bureaucratic hurdles
C Large domestic market, skilled workforce, and government reforms
D Political instability and currency depreciation
32.
Which sectors in India have been major recipients of Foreign Direct Investment in the recent past?
A Agriculture and traditional handicrafts
B Manufacturing, services, and IT
C Mining and quarrying only
D Retail and hospitality exclusively
33.
What trend has India observed regarding Foreign Direct Investment (FDI) in the recent period leading up to 2026?
A Significant outflow of FDI
B Stagnant FDI levels
C Sustained inflow of FDI
D Volatile and unpredictable FDI
34.
What is the current policy repo rate as maintained by the RBI in 2026?
A 5.75%
B 6.00%
C 6.25%
D 6.50%
35.
What is the primary reason cited by the RBI for maintaining the current repo rate?
A To stimulate export growth
B To combat persistent inflation
C To encourage foreign investment
D To reduce the fiscal deficit
36.
As of the latest Monetary Policy Committee (MPC) meeting in 2026, what action has the Reserve Bank of India (RBI) taken regarding the repo rate?
A Increased the repo rate by 25 basis points
B Decreased the repo rate by 15 basis points
C Maintained the repo rate at its current level
D Removed the repo rate mechanism
37.
What are the primary drivers cited by the IMF for India's projected strong GDP growth in FY27?
A Decreasing inflation and stable global commodity prices
B Strong domestic demand and robust investment activity
C Reduced government spending and lower interest rates
D Export-led growth and favorable exchange rates
38.
Which international financial institution projected a robust GDP growth for India in FY27?
A World Bank
B International Monetary Fund (IMF)
C Asian Development Bank (ADB)
D Organisation for Economic Co-operation and Development (OECD)
39.
According to the IMF's projections for FY27 (ending March 2027), what is the anticipated GDP growth rate for India?
A 6.5%
B 7.0%
C 7.3%
D 6.8%
40.
The India-EU Trade and Technology Council (TTC) was established to:
A Coordinate approaches at the intersection of trade and technology
B Manage border security
C Regulate global oil prices
D Oversee humanitarian aid distribution
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