UPSC/SSC/Banking MCQs: RBI, SEBI, Manufacturing

1.

A sustained surge in the manufacturing sector typically leads to which of the following economic benefits for a country like India?

A Increased import dependence and higher trade deficit.

B Higher unemployment rates and reduced GDP growth.

C Job creation, increased exports, and enhanced GDP contribution.

D Decreased foreign exchange reserves and capital outflow.

2.

Which government initiative has been instrumental in boosting domestic manufacturing and attracting investments across various sectors in India?

A Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

B Production Linked Incentive (PLI) Scheme

C Pradhan Mantri Jan Dhan Yojana (PMJDY)

D National Health Mission (NHM)

3.

Which two factors are primarily credited for the recent surge in India's manufacturing sector?

A Declining global trade and reduced foreign direct investment.

B Strong domestic demand and supportive government policies.

C Increased reliance on imported raw materials and skilled labor shortage.

D High inflation rates and a depreciating rupee.

4.

Alternative Investment Funds (AIFs) in India are primarily characterized as:

A Publicly traded mutual funds regulated by IRDAI.

B Privately pooled investment vehicles investing in diverse assets.

C Government-backed pension funds for public sector employees.

D Retail investment schemes for small individual investors.

5.

Which of the following is a key area where SEBI is likely to introduce stricter norms for AIFs, particularly concerning investor protection?

A Mandating AIFs to invest only in government securities.

B Requiring direct payout of distributions to investors and enhanced disclosure of fees and expenses.

C Eliminating the need for AIFs to register with SEBI.

D Allowing AIFs to lend directly to retail customers.

6.

What is a primary reason for SEBI considering stricter norms for Alternative Investment Funds (AIFs)?

A To encourage more retail investors into AIFs.

B Concerns over transparency, valuation practices, and potential for evergreening of loans.

C To reduce the overall capital available for startups.

D To align Indian AIF regulations with global cryptocurrency norms.

7.

A key provision in the RBI's digital lending guidelines to enhance borrower protection is the introduction of a 'cooling-off period'. What does this period allow borrowers to do?

A Negotiate a lower interest rate with the lender.

B Exit the loan by repaying the principal without penalty.

C Apply for an additional top-up loan.

D Extend the loan tenure without extra charges.

8.

According to RBI's digital lending guidelines, which entity is primarily responsible for all loan disbursements and repayments?

A Loan Service Providers (LSPs)

B Digital Lending Apps (DLAs)

C Regulated Entities (REs)

D Payment Gateways

9.

What is the primary objective of the RBI's new digital lending guidelines?

A To promote rapid growth of digital lending platforms.

B To ensure fair practices and protect borrowers from predatory lending.

C To restrict foreign investment in digital lending.

D To mandate a uniform interest rate across all digital loans.

Economy & Business MCQs - 2026-07-26