Economy & Business MCQs: RBI, PLI Scheme, Inflation

1.

Which of the following is a significant factor that can influence India's inflation rate, particularly food inflation, and is often monitored by the RBI?

A Global crude oil prices.

B Monsoon performance and agricultural output.

C Stock market index movements.

D Foreign exchange reserves.

2.

If India's inflation rate remains stable around 4.5% by 2026, what would be a likely stance of the Reserve Bank of India's Monetary Policy Committee (MPC) regarding interest rates, assuming other economic factors are stable?

A Aggressive rate hikes to curb inflation further.

B Significant rate cuts to stimulate economic growth.

C Maintaining a neutral or accommodative stance, given the inflation is within the target band.

D Implementing quantitative easing measures to inject liquidity.

3.

What is the current medium-term inflation target set by the Reserve Bank of India (RBI) for India, which helps in maintaining stability around 4.5%?

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

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

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

D 8% with a band of +/- 1%

4.

Which of the following is NOT among the key sectors covered under the Production Linked Incentive (PLI) scheme as of 2026?

A Automobiles and Auto Components

B Textile Products (MMF segment and Technical Textiles)

C Pharmaceuticals Drugs

D Unorganized Retail (Kirana Stores)

5.

How do the PLI schemes typically incentivize manufacturers to boost production and achieve scale?

A By offering direct subsidies on the purchase of raw materials.

B By providing incentives based on incremental sales/production over a base year.

C By imposing high tariffs on domestically produced goods.

D By mandating specific employment quotas for new hires.

6.

What is the primary objective of the Production Linked Incentive (PLI) scheme in India, which has seen extended benefits by 2026?

A To provide incentives for increasing domestic manufacturing and exports across key sectors.

B To promote imports and reduce reliance on domestic production.

C To discourage foreign investment in India's manufacturing sector.

D To focus solely on agricultural output and food processing industries.

7.

Which entities are primarily brought under the regulatory ambit of the RBI's enhanced digital lending framework?

A Only individual borrowers and their credit scores.

B Only technology platforms providing digital interfaces.

C Regulated Entities (REs) and their associated Lending Service Providers (LSPs).

D Only payment banks and non-banking financial companies (NBFCs).

8.

As per the RBI's digital lending guidelines, how should the loan disbursement and repayment be handled between the borrower and the Regulated Entity (RE)?

A Directly between the borrower and the RE, without any pass-through involvement of a Lending Service Provider (LSP).

B Through the Lending Service Provider (LSP) to the borrower's account.

C Via a third-party payment gateway chosen by the LSP, with funds routed through the LSP's account.

D In cash directly from the LSP to the borrower.

9.

What is a key objective of the RBI's enhanced digital lending framework, operational by 2026?

A Ensuring consumer protection and responsible lending practices.

B Promoting unregulated lending to boost credit growth.

C Encouraging predatory lending practices by FinTech companies.

D Limiting access to credit for small and medium-sized enterprises.

Economy & Business MCQs - 2026-07-25