MCQs on India's Economy: GDP, RBI Policy & Inflation (July 2026)

1.

If the RBI tightens its monetary policy to control inflation, what is a likely short-term impact on economic growth?

A Acceleration of growth

B Deceleration of growth

C No impact on growth

D Increased foreign investment

2.

Which of the following is a key monetary policy tool used by the RBI to manage inflation?

A Fiscal policy

B Government spending

C Repo Rate adjustment

D Tax reforms

3.

What is the primary objective of the Reserve Bank of India's (RBI) monetary policy, especially when focusing on inflation management?

A Price stability

B Maximizing employment

C Promoting exports

D Reducing fiscal deficit

4.

Projections for India's GDP growth, such as for Q1 FY27, are typically released by which of the following entities?

A Reserve Bank of India (RBI)

B International Monetary Fund (IMF)

C Various financial institutions and rating agencies

D All of the above

5.

Which of the following factors is generally considered a key driver for robust GDP growth in India?

A Strong domestic demand

B High crude oil prices

C Weak global trade

D Reduced government spending

6.

What does 'robust expansion' in India's Q1 FY27 GDP growth projections primarily indicate?

A High economic growth

B Stagnant growth

C Declining growth

D Moderate growth

Economy & Business MCQs - 2026-07-03