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

191.

What was the primary decision of the RBI's Monetary Policy Committee (MPC) in its April 10, 2026 review?

A Increased the repo rate by 25 basis points.

B Decreased the repo rate by 25 basis points.

C Maintained the repo rate at 6.50%.

D Announced a special liquidity injection.

192.

What does the RBI's watchful approach to monetary policy indicate?

A A lack of concern for future economic trends

B Readiness to act if inflationary pressures resurface, ensuring macroeconomic stability

C A commitment to only supporting export-oriented industries

D A focus solely on managing foreign exchange reserves

193.

What is the potential impact of maintaining the current repo rate on the economy?

A It will likely lead to higher inflation and reduced investment

B It aims to control inflation while fostering economic growth and encouraging borrowing

C It will primarily benefit exporters by weakening the rupee

D It will lead to a contraction in the services sector

194.

Which factors are contributing to the moderation of inflation in India?

A Rising global commodity prices and supply chain disruptions

B Improved supply-side measures and stable global commodity prices

C Increased domestic demand and currency depreciation

D Reduced government spending and higher import duties

195.

What has been the recent stance of the RBI's Monetary Policy Committee (MPC) regarding the policy repo rate?

A Increased the repo rate significantly

B Decreased the repo rate to stimulate growth

C Maintained a cautious stance, keeping the repo rate unchanged

D Introduced a new variable repo rate mechanism

196.

What is the primary mandate of the Reserve Bank of India (RBI) concerning monetary policy?

A To exclusively focus on economic growth

B To maintain price stability while keeping growth in mind

C To control the exchange rate of the Indian Rupee

D To manage government debt exclusively

197.

Which fiscal year does the projection for India's GDP growth primarily refer to?

A FY25

B FY26

C FY27

D FY28

198.

What is a potential positive impact of sustained high GDP growth for India?

A Increased unemployment and lower per capita income

B Reduced foreign direct investment

C Increased employment opportunities and higher per capita income

D Decreased government fiscal space

199.

The 'Make in India' initiative and PLI schemes are expected to boost which sector?

A Agriculture

B Services

C Manufacturing

D Retail

200.

Which of the following factors are expected to drive India's GDP growth in FY27?

A Primarily export-led growth and reduced domestic consumption

B Sustained domestic consumption and increased government capital expenditure

C Decline in manufacturing output and reliance on foreign aid

D Reduced investment in infrastructure and services sector slowdown

Economy & Business MCQs