Economy and Business Practice MCQs for Competitive Exams

1.

What is the effective corporate tax rate for existing domestic companies that opt for the regime under Section 115BAA (without exemptions)?

A 15%

B 25%

C 22% (plus applicable surcharge and cess)

D 30%

2.

What is the primary goal of the government in reviewing and simplifying the corporate tax framework for manufacturing?

A To discourage foreign direct investment

B To increase the complexity of tax compliance

C To boost domestic production and make India a global manufacturing hub

D To phase out the 'Make in India' initiative

3.

Under which section of the Income Tax Act was the 15% concessional corporate tax rate introduced for new domestic manufacturing companies?

A Section 115BAA

B Section 115BAB

C Section 80IA

D Section 10AA

4.

When the RBI maintains a 'Withdrawal of Accommodation' stance, it implies:

A Reducing the money supply to control inflation

B Increasing the money supply to boost consumption

C Keeping interest rates at the lowest possible level

D Eliminating all taxes on banking transactions

5.

Which of the following best describes the 'Repo Rate'?

A The rate at which RBI borrows money from commercial banks

B The rate at which commercial banks lend to the public

C The rate at which RBI lends money to commercial banks against securities

D The rate of interest on government bonds

6.

What is the primary objective of the RBI's Monetary Policy Committee (MPC) when it decides to maintain the repo rate at a constant level?

A To increase the fiscal deficit

B To ensure price stability while supporting growth

C To decrease the foreign exchange reserves

D To encourage commercial banks to lend at higher rates

Economy & Business MCQs - 2026-04-16