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

261.

What is the primary role of the International Monetary Fund (IMF) in relation to national economies?

A To provide direct loans for infrastructure projects

B To set international trade tariffs

C To provide macroeconomic forecasts and financial assistance

D To regulate domestic stock markets

262.

Which of the following is a key factor contributing to India's projected GDP growth for FY27, as per typical IMF analyses?

A Declining domestic consumption

B Reduced government spending

C Strong domestic demand

D Decreasing foreign direct investment

263.

According to the latest IMF projections for FY27, what is the anticipated GDP growth rate for India?

A Around 5.5%

B Around 6.5%

C Around 7.5%

D Around 6.0%

264.

What is the purpose of 'Regulatory Sandbox' initiatives in the banking sector?

A To restrict new fintech solutions from entering the market.

B To allow new fintech solutions to be tested in a controlled environment.

C To enforce strict regulations on traditional banks only.

D To provide direct financial aid to struggling banks.

265.

What is the primary benefit of a stronger banking system with reduced NPAs?

A Reduced government expenditure on social welfare schemes

B Robust credit growth to support economic expansion

C Increased foreign exchange reserves without any trade impact

D Decreased competition among banks

266.

Which of the following are examples of digital transformation in the banking sector mentioned in the passage?

A 1. Widespread adoption of digital lending platforms 2. Expansion of neo-banks 3. Increased use of AI/ML for fraud detection 4. Reintroduction of physical passbooks for all accounts

B 1, 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4 only

267.

As of April 2026, what is the status of Gross NPAs (GNPAs) and Net NPAs (NNPAs) across scheduled commercial banks?

A They have increased significantly.

B They have remained stagnant.

C They have reached multi-year lows.

D They are only a concern for private sector banks.

268.

Which of the following measures were undertaken to address the high levels of Non-Performing Assets (NPAs) in the Indian banking sector?

A 1. Recapitalization of Public Sector Banks (PSBs) 2. Implementation of the Insolvency and Bankruptcy Code (IBC) 3. Stringent asset quality reviews 4. Reducing interest rates on all loans

B 1, 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4 only

269.

What is a strategic implication of India's enhanced role in global supply chains?

A Increased vulnerability to external supply shocks

B Reduced geopolitical importance

C Enhanced geopolitical importance and reduced vulnerability to external supply shocks

D Exclusive focus on domestic market consumption

270.

India's growing role in global supply chain diversification primarily boosts which government initiative?

A Digital India

B Swachh Bharat Abhiyan

C Make in India

D Smart Cities Mission

Economy & Business MCQs