Economy and Business MCQs: July 2026 Current Affairs Practice

1.

The strong performance of the manufacturing sector in Q1 FY27 is expected to have a positive impact on which of the following?

A Inflation and interest rates.

B Unemployment and overall economic growth (GDP).

C Government fiscal deficit and public debt.

D Balance of payments and foreign direct investment (FDI).

2.

What factors are generally attributed to the strong growth in India's manufacturing sector in Q1 FY27?

A Decreased government spending and lower domestic demand.

B Increased investment, improved supply chains, and supportive government policies.

C Global economic slowdown and reduced export orders.

D Rising raw material costs and labor shortages.

3.

India's manufacturing sector has shown robust growth in the first quarter (Q1) of the fiscal year 2026-27. Which of the following is a key indicator of manufacturing sector performance?

A Purchasing Managers' Index (PMI)

B Consumer Price Index (CPI)

C Wholesale Price Index (WPI)

D Gross Domestic Product (GDP) Deflator

4.

How many members constitute the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A 5 members

B 6 members

C 7 members

D 8 members

5.

What is the primary objective of the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A To manage the country's foreign exchange reserves.

B To maintain price stability while keeping in mind the objective of inclusive growth.

C To regulate the issuance of currency notes.

D To oversee the functioning of public sector banks.

6.

The Reserve Bank of India's Monetary Policy Committee (MPC) recently decided to keep the repo rate unchanged. What is the current repo rate as of the latest announcement in 2026?

A 6.25%

B 6.50%

C 6.75%

D 6.00%

Economy & Business MCQs - 2026-07-31