Economy & Business MCQs

The Monetary Policy Committee (MPC) is a statutory body of the RBI tasked with fixing the benchmark interest rate (repo rate) to achieve the inflation target.

The primary mandate of the RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth. Inflation control is crucial for achieving price stability.

Maintaining 'status quo' in monetary policy means that the central bank decides to keep the existing policy rates, such as the repo rate, unchanged.

Increased household consumption and private investment are direct components and strong indicators of robust domestic demand, signaling confidence and spending within the economy.

Robust domestic demand primarily refers to the total demand for goods and services within a country, which is largely driven by private consumption (household spending) and government spending (public consumption and investment).

The topic explicitly states 'Robust Domestic Demand' as a key factor contributing to India's strong GDP growth. Domestic demand includes private consumption and investment.

Increased global demand for Indian goods, improved product quality, competitive pricing, and favorable trade agreements can all contribute to exceeding export expectations.

Higher-than-expected exports lead to increased foreign exchange inflows, boost economic growth, and can help improve the trade balance.

India's merchandise exports in April 2026 surpassed the anticipated levels, indicating a strong performance in the global trade arena.

Sectors like manufacturing, services (including IT and finance), and technology typically attract significant FDI due to their growth potential and contribution to economic development.