MCQs: RBI Monetary Policy & India's Economic Growth

1.

Which factor is a major driver of India's GDP growth in recent quarters?

A High dependence on agricultural exports

B Robust domestic consumption and infrastructure spending

C Complete reliance on foreign direct investment

D Stagnation in the service sector

2.

GDP growth projections are primarily used by policymakers to:

A Determine the stock market closing price

B Plan fiscal policy and budget allocations

C Fix the international currency exchange rate

D Regulate private sector hiring

3.

Which organization typically releases the official GDP growth data for India?

A Reserve Bank of India

B National Statistical Office (NSO)

C NITI Aayog

D Ministry of Finance

4.

The Repo Rate is the rate at which:

A RBI lends money to commercial banks

B Commercial banks lend money to RBI

C Government borrows from the public

D Banks lend to retail customers

5.

What happens to the liquidity in the banking system when the RBI maintains the repo rate?

A Liquidity increases significantly

B Liquidity decreases significantly

C Liquidity remains relatively stable

D Liquidity is completely withdrawn

6.

Which committee is responsible for deciding the Repo Rate in India?

A Financial Stability and Development Council

B Monetary Policy Committee

C Economic Advisory Council

D Securities and Exchange Board of India

Economy & Business MCQs - 2026-06-22