Economy & Business MCQs

11.

The potential regulation of Artificial Intelligence (AI) in e-commerce is being considered due to concerns about:

A Reduced personalization of services.

B Algorithmic bias and unfair advertising practices.

C Decreased efficiency of online platforms.

D Limited use of data analytics.

12.

The integration of Small and Medium-sized Enterprises (SMEs) into the e-commerce ecosystem is expected to:

A Reduce their market reach.

B Increase financial inclusion and economic participation.

C Limit their access to digital tools.

D Decrease overall e-commerce growth.

13.

What is the significance of 'data localization' in the context of e-commerce policy?

A Storing user data in servers located outside the country.

B Requiring that data collected within India be stored on servers located within India.

C Allowing unrestricted access to user data by foreign entities.

D Eliminating the need for data privacy regulations.

14.

The regulations on 'deep discounting' in e-commerce are primarily intended to:

A Encourage aggressive price wars among all sellers.

B Harm smaller sellers and promote monopolies.

C Create a level playing field and prevent unfair advantages for large platforms.

D Increase the overall cost of goods for consumers.

15.

Which of the following is a key objective of India's recent e-commerce policy reforms?

A To exclusively promote large e-commerce marketplaces.

B To ensure fair competition, consumer protection, and data privacy.

C To discourage the use of digital payments.

D To limit the participation of small and medium-sized enterprises (SMEs).

16.

What does it mean for the RBI to 'anchor inflation expectations'?

A To encourage people to expect higher inflation.

B To influence public and business expectations about future inflation to keep them stable and aligned with the target.

C To ignore public expectations about inflation.

D To allow inflation expectations to rise unchecked.

17.

The RBI's target band for Consumer Price Index (CPI) inflation in India is currently:

A 0-2%

B 2-6%

C 4-8%

D 6-10%

18.

Persistent high inflation can lead to which of the following consequences?

A Increased purchasing power of money

B Erosion of purchasing power and reduced savings

C Stimulation of long-term investment

D Economic stability

19.

Which of the following is a key tool used by the RBI to manage liquidity and influence interest rates in the economy?

A Fiscal Deficit

B Repo Rate

C Gross Domestic Product (GDP)

D Balance of Trade

20.

What is the primary objective of the Reserve Bank of India (RBI) regarding inflation?

A To maintain a high rate of inflation to stimulate spending.

B To ensure price stability by keeping inflation within a target band.

C To encourage deflation to increase purchasing power.

D To allow inflation to fluctuate freely without intervention.

Economy & Business MCQs - 2026-04-04