Economy and Business MCQs: July 2026 Current Affairs Practice

121.

The decision by the RBI's Monetary Policy Committee (MPC) to maintain the repo rate at 6.50% for the seventh consecutive review in 2026 reflects which of the following economic conditions?

A High and persistent inflation requiring tighter monetary policy.

B Slowing economic growth necessitating rate cuts.

C A balanced approach to manage inflation while supporting growth.

D Deflationary pressures in the economy.

122.

What is the primary objective of the RBI in maintaining the repo rate at its current level, as indicated by the latest MPC review in 2026?

A To stimulate economic growth aggressively.

B To ensure inflation remains within the target range.

C To increase the value of the Indian Rupee.

D To reduce the government's borrowing costs.

123.

As of the latest Monetary Policy Committee (MPC) review in 2026, the Reserve Bank of India (RBI) has maintained the repo rate at what percentage for the seventh consecutive time?

A 6.25%

B 6.50%

C 6.75%

D 6.00%

124.

Which of the following sectors is a major contributor to India's GDP?

A Services Sector

B Mining and Quarrying

C Electricity and Gas

D Fishing

125.

What does 'Q2' refer to in the context of India's financial year GDP reporting?

A April to June

B July to September

C October to December

D January to March

126.

Which organization releases the official GDP growth data for India?

A Reserve Bank of India (RBI)

B National Statistical Office (NSO)

C NITI Aayog

D Ministry of Finance

127.

Which of the following is a common feature of export promotion schemes in India?

A High import duties on raw materials

B Duty drawbacks or tax remissions

C Restrictions on export volume

D Mandatory domestic consumption quotas

128.

What is the main goal of an Export Promotion Scheme?

A To increase imports of luxury goods

B To reduce the country's foreign exchange reserves

C To enhance the competitiveness of domestic goods in the international market

D To discourage domestic manufacturing

129.

Which ministry is primarily responsible for formulating India's Foreign Trade Policy?

A Ministry of Finance

B Ministry of Commerce and Industry

C Ministry of External Affairs

D Ministry of Micro, Small and Medium Enterprises

130.

Which instrument is used by the RBI to absorb liquidity from the banking system?

A Repo Rate

B Reverse Repo Rate

C Bank Rate

D Marginal Standing Facility

Economy & Business MCQs