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

121.

What is the current policy repo rate maintained by the RBI?

A 6.00%

B 6.25%

C 6.50%

D 6.75%

122.

Which of the following remained elevated despite the overall easing of inflation in March 2024?

A Food prices

B Fuel prices

C Housing and clothing inflation

D Transportation costs

123.

What is a potential impact of moderating inflation on monetary policy?

A It may lead to an increase in the policy repo rate.

B It strengthens the case for maintaining an accommodative stance.

C It necessitates a tightening of monetary policy.

D It has no significant impact on monetary policy.

124.

What is the primary indicator used to measure India's retail inflation?

A Wholesale Price Index (WPI)

B Gross Domestic Product (GDP)

C Consumer Price Index (CPI)

D Index of Industrial Production (IIP)

125.

Which category primarily contributed to the easing of inflation in March 2024?

A Housing

B Clothing

C Food and beverages

D Fuel and light

126.

What was India's retail inflation rate in March 2024?

A 5.09%

B 4.83%

C 4.50%

D 5.25%

127.

What is one of the primary objectives of the government's emphasis on capital expenditure?

A To reduce the fiscal deficit by cutting spending.

B To drive economic growth and create jobs.

C To increase subsidies for various sectors.

D To control inflation through monetary measures.

128.

What long-term benefit is expected from the government's sustained capital expenditure push?

A Increased reliance on imports.

B Reduced national debt.

C Improved productivity and a stronger foundation for sustainable economic growth.

D Decreased foreign investment.

129.

What is a direct impact of increased government capital expenditure on core industries?

A Decreased demand for raw materials.

B Boosted demand for sectors like cement, steel, and construction equipment.

C Shift in focus from manufacturing to services.

D Reduction in overall industrial output.

130.

Which of the following ministries were highlighted for robust utilization of allocated funds for capital expenditure?

A Ministry of Health and Family Welfare

B Ministry of Education and Skill Development

C Ministry of Road Transport & Highways and Railways

D Ministry of External Affairs and Culture

Economy & Business MCQs