In July 2026, what is the prevailing monetary policy stance adopted by the Reserve Bank of India (RBI) to manage inflation and support economic growth?
A Aggressively accommodative, with a focus on lowering interest rates.
B Neutral, with no strong bias towards either tightening or easing.
C Calibrated tightening, with a focus on bringing inflation within the target band.
D Reverse repo focused, aiming to absorb excess liquidity.
Answer: C
As of July 2026, the RBI's Monetary Policy Committee (MPC) has maintained a stance of 'Calibrated Tightening'. This approach aims to balance the need to control inflation, which might still be above the desired target, with the objective of not stifling economic growth.
112.
What is the projected trend for India's retail inflation in the latter half of 2026, based on the July 2026 figures and prevailing economic conditions?
A A sharp increase due to anticipated monsoon failures impacting food supply.
B A gradual decline as supply chain disruptions are expected to fully resolve.
C Continued volatility with potential for both upward and downward movements, heavily influenced by food prices and global factors.
D A steady plateauing around the 5% mark, indicating a stable economic environment.
Answer: C
The July 2026 inflation data, combined with ongoing global uncertainties and the seasonal impact on food prices, suggests that retail inflation is likely to remain volatile in the second half of 2026. While some factors might push it down, food price fluctuations and external shocks remain key risks.
113.
Considering the retail inflation data for July 2026, which sector has shown a notable moderation in price rise, contributing to a slight easing of the overall inflation rate?
A Housing and rent prices.
B Fuel and light prices.
C Healthcare services.
D Clothing and footwear.
Answer: B
Data for July 2026 suggests that the fuel and light component of the CPI basket has experienced some moderation, possibly due to stable global energy markets or specific government interventions, helping to slightly offset the pressures from other categories.
114.
As per the latest available data for July 2026, what has been the primary driver contributing to the recent fluctuations in India's retail inflation (CPI)?
A A significant decrease in global crude oil prices.
B Persistent high food inflation, particularly in vegetables and pulses.
C A sharp decline in manufactured goods prices due to supply chain improvements.
D Government subsidies leading to a reduction in essential commodity prices.
Answer: B
In July 2026, reports indicate that food inflation, especially for items like vegetables and pulses, has remained a significant concern, exerting upward pressure on the overall Consumer Price Index (CPI). While other factors might play a role, food prices have been the most consistent contributor to inflationary trends.
115.
What kind of benefits might a new export promotion scheme offer to businesses?
A Subsidies on domestic sales
B Tax incentives and duty drawbacks
C Restrictions on import of raw materials
D Increased regulatory compliance burden
Answer: B
Export promotion schemes often include benefits like tax exemptions, reduced duties on imported inputs for manufacturing exports, and other financial incentives to make Indian products more competitive globally.
116.
Which ministry is typically responsible for launching and overseeing export promotion schemes in India?
A Ministry of Finance
B Ministry of Commerce and Industry
C Ministry of External Affairs
D Ministry of Home Affairs
Answer: B
The Ministry of Commerce and Industry, through its departments like the Department of Commerce, is the nodal ministry for formulating and implementing policies related to trade and export promotion.
117.
The Indian government has recently launched a new export promotion scheme in 2026. What is the primary aim of this scheme?
A To reduce imports into India
B To boost India's merchandise and service exports
C To increase domestic consumption
D To attract foreign direct investment
Answer: B
The new export promotion scheme launched in 2026 is designed to provide incentives and support to Indian exporters, thereby increasing the country's overall export performance in both goods and services.
118.
What is the primary objective of maintaining a stable repo rate by the RBI?
A To increase bank profits
B To control inflation and support economic growth
C To encourage foreign investment
D To reduce government borrowing costs
Answer: B
The RBI uses the repo rate as a tool to manage liquidity in the economy, aiming to control inflation and ensure price stability, while also considering the need for economic growth.
119.
Which body is responsible for deciding the policy repo rate in India?
A Securities and Exchange Board of India (SEBI)
B Monetary Policy Committee (MPC) of RBI
C Finance Ministry of India
D NITI Aayog
Answer: B
The Monetary Policy Committee (MPC) is empowered by the RBI Act, 1934, to determine the policy repo rate required to meet the inflation target while keeping in mind the objective of growth.
120.
As of the latest Monetary Policy Committee (MPC) meeting in 2026, what is the current status of the repo rate?
A Maintained at the previous level
B Increased by 25 basis points
C Decreased by 25 basis points
D Increased by 50 basis points
Answer: A
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the policy repo rate unchanged in its recent meeting in 2026, maintaining the status quo.
