Economy & Business MCQs

1.

A credible fiscal consolidation path is likely to:

A Reduce investor confidence

B Lead to a downgrade in sovereign credit rating

C Enhance investor confidence and potentially improve credit rating

D Increase the risk of inflation

2.

Which of the following is a key strategy for achieving fiscal consolidation?

A Increasing non-essential government expenditure

B Reducing tax revenues

C Controlling non-essential expenditure and increasing tax compliance

D Increasing reliance on borrowings

3.

A lower fiscal deficit generally leads to:

A Increased government borrowing

B Higher interest rates

C Reduced upward pressure on interest rates

D Stifled economic growth due to austerity

4.

The fiscal deficit is defined as the difference between the government's total expenditure and its total revenue, excluding:

A Tax revenue

B Non-tax revenue

C Borrowings

D Disinvestment proceeds

5.

What is the projected fiscal deficit for India in FY27, as a percentage of GDP?

A Around 4.0-4.5%

B Around 5.0-5.5%

C Around 6.0-6.5%

D Around 3.0-3.5%

6.

The emergence of a strong startup ecosystem contributes to India's economy by:

A Increasing dependence on foreign technology

B Driving innovation, job creation, and economic diversification

C Reducing competition for established companies

D Limiting access to new products and services

7.

Compared to previous years, funding rounds in 2026 are becoming more selective, with investors focusing on:

A Hyper-growth at any cost

B Sustainable business models and profitability

C Unproven business ideas

D High marketing expenditure

8.

The 'Startup India' initiative is primarily aimed at:

A Promoting traditional industries

B Fostering innovation and entrepreneurship

C Regulating foreign investment

D Increasing government bureaucracy

9.

Which of the following sectors is currently attracting significant investor interest in India's startup ecosystem?

A Traditional brick-and-mortar retail

B Deep tech, AI, and climate tech

C Print media and publishing

D Physical video rental stores

10.

What is the valuation threshold for a startup to be recognized as a 'unicorn'?

A $100 million

B $500 million

C $1 billion

D $5 billion

Economy & Business MCQs - 2026-04-07