MCQs on Economy & Business: RBI, GDP, PLI Scheme (June 2026)

1.

A key benefit of the PLI scheme for advanced electronics manufacturing is expected to be:

A Increased reliance on imports

B Decreased employment opportunities

C Enhanced self-reliance and global competitiveness

D Reduced foreign exchange reserves

2.

The PLI scheme for Advanced Electronics Manufacturing primarily aims to promote which of the following?

A Textile production

B Food processing

C Semiconductor and display fabrication

D Automobile components

3.

What is the primary objective of the Production Linked Incentive (PLI) scheme?

A To reduce import duties on raw materials.

B To provide subsidies for agricultural exports.

C To boost domestic manufacturing and exports by offering incentives on incremental sales.

D To encourage foreign direct investment in the service sector.

4.

In India, the financial year (FY) typically runs from which month to which month?

A January to December

B April to March

C July to June

D October to September

5.

Which of the following is a key component of 'domestic demand' that drives GDP growth?

A Net Exports

B Government Consumption Expenditure

C Foreign Direct Investment

D External Borrowings

6.

Which of the following best defines Gross Domestic Product (GDP)?

A Total value of goods and services produced by a country's citizens anywhere in the world.

B Total value of goods and services produced within a country's geographical boundaries in a specific period.

C Total value of exports minus imports.

D Total government expenditure in a fiscal year.

7.

What is the primary inflation target mandated for the Monetary Policy Committee (MPC) by the Government of India?

A 2% with a band of +/- 1%

B 4% with a band of +/- 2%

C 6% with a band of +/- 2%

D 5% with a band of +/- 1%

8.

What does maintaining the Repo Rate primarily signal about the RBI's stance on liquidity and inflation?

A Tightening monetary policy

B Easing monetary policy

C Neutral monetary policy

D Expansionary fiscal policy

9.

Who heads the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A RBI Governor

B Finance Minister

C Prime Minister

D Chief Economic Advisor

Economy & Business MCQs - 2026-06-27