Economy & Business MCQs

31.

A stable interest rate environment, as maintained by the RBI, primarily provides predictability for which of the following?

A Government expenditure

B Foreign exchange rates

C Business investment decisions

D Agricultural output

32.

What is the target band for inflation that the RBI aims to maintain?

A 2% +/- 1%

B 4% +/- 2%

C 6% +/- 2%

D 5% +/- 1%

33.

Which of the following are mentioned as potential upside risks to inflation that the MPC remains wary of?

A 1. Unpredictable weather patterns affecting food prices 2. Global energy price fluctuations 3. Impact of fiscal policies 4. Strong domestic demand

B 1, 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4 only

34.

As of April 2026, what is the likely stance of the RBI's Monetary Policy Committee (MPC)?

A Aggressive rate hikes to curb inflation

B Significant rate cuts to stimulate growth

C Maintaining a cautious 'withdrawal of accommodation' stance with stable policy rates

D Focusing solely on boosting liquidity in the banking system

35.

What was the primary objective of the RBI's aggressive interest rate hikes starting in 2022?

A To boost export competitiveness

B To combat surging inflation

C To encourage foreign direct investment

D To stimulate domestic consumption

36.

The Production Linked Incentive (PLI) schemes are primarily aimed at boosting which sector in India?

A Agriculture

B Services

C Manufacturing

D Mining

37.

Which of the following global challenges are mentioned as a backdrop to India's economic growth?

A 1. Geopolitical tensions 2. Elevated global inflation 3. General slowdown in major developed economies 4. Rapid technological advancements in competitor nations

B 1, 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4 only

38.

Consider the following statements regarding the 'Impact/Significance' of India's economic growth: 1. It is crucial for job creation and poverty reduction. 2. It enhances India's attractiveness as a global investment destination. 3. It is instrumental in achieving India's goal of becoming a developed nation by 2047. Which of the statements given above are correct?

A 1 and 2 only

B 2 and 3 only

C 1 and 3 only

D 1, 2 and 3

39.

What is India's projected GDP growth range for FY26, as per the current context in April 2026?

A 4.5% to 5.5%

B 5.8% to 6.2%

C 6.8% to 7.2%

D 7.5% to 8.0%

40.

Which of the following are identified as primary drivers of India's economic growth in the post-pandemic era, as of April 2026?

A 1. Robust domestic demand 2. Significant government capital expenditure 3. Strategic policy reforms 4. High global commodity prices

B 1, 2 and 3 only

C 1, 2 and 4 only

D 1, 3 and 4 only

Economy & Business MCQs - 2026-04-06