MCQs on RBI Monetary Policy & India's Q4 FY26 GDP

1.

Which government agency is primarily responsible for releasing official GDP data for India?

A Reserve Bank of India (RBI)

B Ministry of Finance

C National Statistical Office (NSO)

D Securities and Exchange Board of India (SEBI)

2.

When India's GDP growth exceeds expectations, it generally indicates:

A A slowdown in economic activity.

B Increased economic resilience and potential for higher future growth.

C A need for tighter monetary policy to cool down the economy.

D A decrease in employment opportunities.

3.

India's Gross Domestic Product (GDP) growth in the fourth quarter (Q4) of the financial year (FY) 2025-26 has surpassed initial projections. Which of the following is a likely contributing factor to this robust growth?

A A significant decline in agricultural output due to adverse weather conditions.

B Strong performance in the services sector and increased capital expenditure.

C A sharp contraction in manufacturing due to supply chain disruptions.

D Reduced consumer spending due to high inflation.

4.

What is the repo rate?

A The rate at which commercial banks lend to the public.

B The rate at which the RBI lends to commercial banks against government securities.

C The rate at which commercial banks lend to each other overnight.

D The rate at which the RBI borrows from the government.

5.

When the RBI's Monetary Policy Committee (MPC) decides to maintain the repo rate, it implies a stance that is generally considered:

A Accommodative

B Hawkish

C Neutral or Calibrated

D Dovish

6.

The Reserve Bank of India's Monetary Policy Committee (MPC) recently decided to keep the repo rate unchanged. What is the primary objective of maintaining the repo rate at its current level?

A To stimulate economic growth by making borrowing cheaper.

B To control inflation and ensure price stability.

C To increase foreign direct investment inflows.

D To reduce the fiscal deficit of the government.

Economy & Business MCQs - 2026-05-03