Economy & Business Current Affairs MCQs for UPSC, SSC, Banking Exams

1.

What is a significant economic impact of a strong industrial sector performance?

A Increased reliance on imports

B Reduced job creation

C Enhanced competitiveness, job creation, and reduced import dependence

D Lower contribution to GDP

2.

What is the role of Production Linked Incentive (PLI) schemes?

A To reduce import duties

B To provide subsidies for research and development

C To boost production in key manufacturing sectors

D To regulate market prices

3.

Which segments within the industrial sector are showing particular strength according to recent reports?

A Mining and quarrying

B Electricity and gas supply

C Capital goods and durable consumer goods

D Agriculture and allied industries

4.

Which index measures the growth of the industrial sector in India?

A Consumer Price Index (CPI)

B Wholesale Price Index (WPI)

C Index of Industrial Production (IIP)

D Gross Domestic Product (GDP)

5.

What is a key government initiative aimed at boosting domestic manufacturing in India?

A Digital India

B Make in India

C Skill India

D Startup India

6.

Why is a stable inflation environment crucial for the economy?

A It encourages speculative investments

B It leads to higher interest rates for borrowers

C It supports investment decisions, consumer spending, and economic predictability

D It benefits only large corporations

7.

What does the RBI's 'withdrawal of accommodation' policy signify?

A An expansionary monetary policy

B A stance aimed at reducing liquidity in the system

C A focus on increasing borrowing

D A signal for immediate interest rate cuts

8.

Which factor is contributing to the moderation of headline inflation in India?

A Rising global energy prices

B Increased domestic demand outpacing supply

C Better food supply management and stable global energy prices

D Depreciation of the Indian Rupee

9.

What is the current stance of the RBI's Monetary Policy Committee (MPC) on the policy repo rate?

A To significantly reduce the repo rate

B To maintain the current policy repo rate

C To rapidly increase the repo rate

D To abolish the policy repo rate

10.

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

A To maintain inflation above 6%

B To ensure inflation progressively aligns with the target of 4%

C To allow inflation to fluctuate freely

D To keep inflation below 2%

Economy & Business MCQs - 2026-04-12