MCQs on India's Economy: GDP, RBI, and Growth

1.

What is a likely immediate implication of the RBI maintaining a status quo on key policy rates in July 2026 for commercial banks?

A Stable lending and borrowing rates for banks

B A significant increase in the cost of funds for banks

C Mandatory reduction in interest rates on deposits

D Direct intervention in stock market operations

2.

Which body within the Reserve Bank of India is responsible for deciding on the key policy rates, such as the Repo Rate, in July 2026?

A Monetary Policy Committee (MPC)

B Central Board of Directors

C Financial Stability and Development Council (FSDC)

D Department of Economic and Policy Research (DEPR)

3.

The Reserve Bank of India (RBI) maintaining a status quo on key policy rates in July 2026 primarily indicates its focus on which of the following?

A Managing inflation within the target band

B Stimulating immediate economic growth at any cost

C Increasing government borrowing

D Devaluing the Indian Rupee

4.

A key international agency's projection for India's GDP growth in 2026, often cited in economic reports, would typically highlight which of the following?

A India as the fastest-growing major economy

B A significant contraction due to global slowdown

C Dependence solely on agricultural output

D A decline in foreign direct investment (FDI)

5.

Which government initiative is likely to play a crucial role in boosting India's manufacturing output and contributing to GDP growth in 2026?

A Production Linked Incentive (PLI) schemes

B Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

C National Food Security Act (NFSA)

D Pradhan Mantri Jan Dhan Yojana (PMJDY)

6.

What is a primary factor expected to drive India's strong GDP growth in 2026?

A Robust domestic consumption and investment

B Significant decline in global crude oil prices

C Stagnation in the manufacturing sector

D Decrease in government capital expenditure

Economy & Business MCQs - 2026-07-28