MCQs on India's Economy: GDP, Inflation, RBI Policy

131.

What was the trend observed in the government's capital expenditure for FY 2025-26?

A It significantly decreased compared to previous years.

B It remained stagnant, failing to meet targets.

C It surpassed its revised estimates.

D It was primarily directed towards social welfare schemes.

132.

What is a crucial factor highlighted for improving India's overall export performance?

A Reducing domestic consumption.

B Increasing reliance on a single export market.

C Sustained policy support and market diversification efforts.

D Imposing higher tariffs on imported goods.

133.

What was the trend observed in India's trade deficit for March 2026?

A It narrowed significantly.

B It remained unchanged.

C It widened slightly.

D It turned into a surplus.

134.

What was a key challenge faced by traditional export sectors like textiles in March 2026?

A Shortage of skilled labor.

B Increased domestic consumption.

C Subdued global demand and increased competition.

D New government regulations restricting exports.

135.

Which of the following sectors demonstrated robust performance in India's exports during March 2026?

A Textiles and Gems & Jewellery

B Leather products and Handicrafts

C Electronics and Pharmaceuticals

D Agricultural commodities and Marine products

136.

What was the approximate year-on-year growth rate for India's merchandise exports in March 2026?

A 1.5%

B 3.5%

C 5.0%

D 7.5%

137.

What is a potential short-term impact of the RBI's decision to hold interest rates steady?

A Significant boost in consumer spending due to cheaper loans.

B Increased foreign direct investment due to higher returns.

C Sustained higher borrowing costs for businesses and consumers.

D Rapid depreciation of the Indian Rupee.

138.

How many consecutive times has the MPC maintained the repo rate at 6.50% as of its April 2026 review?

A Five times

B Six times

C Seven times

D Eight times

139.

What is the primary objective of the RBI's Monetary Policy Committee (MPC)?

A To maximize government revenue through taxation.

B To maintain price stability while supporting economic growth.

C To manage the foreign exchange reserves exclusively.

D To regulate the stock market operations.

140.

Which of the following was cited as a key reason for the MPC's decision to maintain the repo rate?

A Significant decline in global crude oil prices.

B Persistent core inflation and global uncertainties.

C Robust growth in agricultural output.

D Strong appreciation of the Indian Rupee against major currencies.

Economy & Business MCQs