Economy & Business MCQs

191.

What is the primary role of the RBI in managing inflation?

A To actively increase inflation for economic stimulus

B To maintain price stability through monetary policy

C To encourage borrowing without regard to inflation

D To focus solely on economic growth without considering price levels

192.

The stabilization of inflation is considered a significant achievement because it:

A Leads to economic instability

B Provides a predictable economic environment

C Increases the cost of borrowing

D Discourages international trade

193.

Which of the following categories has seen moderate increases in prices, according to the article?

A Food and beverages

B Housing and healthcare

C Clothing and footwear

D Transportation

194.

The article suggests that inflation has remained within:

A Unpredictable levels

B Unmanageable limits

C Manageable limits

D Record high levels

195.

Which government measures have been key to achieving favorable inflation outcomes?

A Increasing import duties on essential goods

B Proactive management of food inflation and efficient logistics

C Reducing subsidies on agricultural inputs

D Limiting the production of essential commodities

196.

A controlled inflation environment is crucial for:

A Decreasing consumer spending

B Discouraging investment

C Boosting consumer spending and encouraging investment

D Reducing export competitiveness

197.

How has the RBI responded to the stable inflation environment?

A Aggressively increasing interest rates

B Maintaining a balanced approach to monetary policy

C Reducing the money supply significantly

D Encouraging higher inflation for growth

198.

Which of the following factors has NOT been cited as influencing the CPI moderation?

A Stable food prices

B Rising global commodity prices

C Effective supply-side management

D Easing global commodity prices

199.

What is a significant benefit of the stabilized inflation rate?

A Increased uncertainty for businesses

B Relief to consumers and a stable economic planning environment

C Reduced consumer spending

D Decreased competitiveness of Indian exports

200.

What was the approximate inflation rate in India during FY 2025-26?

A 3.0%

B 4.5%

C 5.5%

D 6.0%