Green Hydrogen is produced through the electrolysis of water using renewable energy sources. Which of the following is NOT a key component for its sustainable production?
A Renewable energy (e.g., solar, wind)
B Electrolyzer technology
C Fossil fuels
D Water
Answer: C
Green Hydrogen's defining characteristic is its production using only renewable energy sources. Fossil fuels are used to produce grey or blue hydrogen, not green hydrogen. Therefore, fossil fuels are not a component of sustainable green hydrogen production.
72.
What is the primary objective of the Production Linked Incentive (PLI) scheme for Green Hydrogen manufacturing launched by the Government of India?
A To increase the import of hydrogen fuel.
B To promote domestic manufacturing and export of Green Hydrogen.
C To subsidize the consumption of fossil fuels.
D To discourage investment in renewable energy sources.
Answer: B
The PLI scheme aims to make India a global hub for Green Hydrogen production and export by incentivizing domestic manufacturing, thereby reducing import dependence and fostering technological advancements.
73.
When the RBI Monetary Policy Committee decides to maintain key rates, it signals a stance that is generally considered:
A Accommodative
B Hawkish
C Neutral
D Dovish
Answer: C
Maintaining key rates, especially when there are mixed signals about inflation and growth, often indicates a 'neutral' stance. An accommodative stance would involve rate cuts, while a hawkish stance would involve rate hikes to combat inflation. A dovish stance is similar to accommodative.
74.
Which of the following is a key policy rate that the RBI Monetary Policy Committee typically reviews and decides upon?
A Prime Lending Rate (PLR)
B Repo Rate
C Bank Rate
D Effective Annual Rate (EAR)
Answer: B
The Repo Rate is the rate at which the RBI lends money to commercial banks, and it is a primary tool used by the MPC to manage liquidity and influence interest rates in the economy. While Bank Rate is also a policy rate, the Repo Rate is more frequently adjusted and is central to the MPC's decisions.
75.
What is the primary objective of the Reserve Bank of India (RBI) when it maintains key interest rates, such as the repo rate, amidst global uncertainties?
A To stimulate economic growth by making borrowing cheaper.
B To control inflation and maintain price stability.
C To encourage foreign direct investment by offering higher returns.
D To reduce the government's fiscal deficit.
Answer: B
The primary mandate of the RBI's Monetary Policy Committee (MPC) is to maintain price stability while keeping in mind the objective of growth. Maintaining key rates helps in anchoring inflation expectations and preventing inflationary pressures from building up, especially during uncertain times.
76.
Which international financial institution often provides forecasts and analyses on India's economic growth prospects, contributing to the understanding of its performance in years like 2026?
A World Trade Organization (WTO)
B International Monetary Fund (IMF)
C North Atlantic Treaty Organization (NATO)
D Organization of the Petroleum Exporting Countries (OPEC)
Answer: B
The International Monetary Fund (IMF) regularly publishes World Economic Outlook reports that include forecasts and analyses for various countries, including India, providing insights into their economic growth prospects.
77.
What is a key demographic advantage that is expected to support India's economic growth trajectory in the medium term, including towards 2026?
A A rapidly aging population.
B A large and young working-age population.
C Declining literacy rates.
D High rates of outward migration of skilled labor.
Answer: B
India's large and young working-age population (demographic dividend) is a significant advantage, providing a strong labor force and consumer base to drive economic growth.
78.
Which of the following factors is widely considered a significant contributor to India's projected strong economic growth towards 2026?
A Declining domestic consumption and investment.
B Robust public capital expenditure and private sector investment.
C Over-reliance on agricultural exports.
D Stagnation in the manufacturing sector.
Answer: B
Strong public capital expenditure, coupled with a revival in private sector investment, is expected to be a key driver of India's economic growth.
79.
According to the RBI's digital lending guidelines, what is the significance of the 'cooling-off period' or 'look-up period' for borrowers?
A It allows borrowers to apply for another loan immediately after repayment.
B It provides borrowers with an option to exit the loan by paying the principal and proportionate annual percentage rate (APR) without penalty.
C It is a mandatory waiting period before the loan amount is disbursed.
D It refers to the time taken for the loan application to be processed.
Answer: B
The 'cooling-off period' allows borrowers to exit a loan by repaying the principal and proportionate APR without any penalty within a specified period, typically a few days, if they decide they no longer need the loan.
80.
The primary objective behind the Reserve Bank of India (RBI) tightening digital lending norms is to address which of the following concerns?
A To increase the overall volume of digital lending in the economy.
B To promote foreign investment in the digital lending sector.
C To mitigate concerns related to unethical lending practices, data privacy, and exorbitant interest rates.
D To reduce the operational costs for digital lending platforms.
Answer: C
The RBI tightened norms to address issues like predatory lending, lack of transparency, data privacy breaches, and high-interest rates charged by some digital lenders, thereby safeguarding borrowers.
