Economy & Business MCQs

SEBI's proposed stricter regulations for AIFs in 2026 are largely driven by concerns regarding the lack of transparency in certain AIF operations and the potential for mis-selling complex investment products to unsuspecting investors.

The Reserve Bank of India (RBI) is the central banking institution responsible for regulating and supervising the banking and financial system in India, including digital lending platforms. Therefore, it is responsible for enforcing its own guidelines.

The cooling-off period mandated by the RBI in 2026 aims to give borrowers a window to re-evaluate their decision, understand all terms and conditions, and ensure they are not making a hasty commitment, thereby preventing potential financial distress.

The RBI's 2026 guidelines mandate that Digital Lending Apps (DLAs) must clearly disclose all-in-one pricing, appoint a Chief Compliance Officer, and mention the lending service provider (LSP). However, a certificate of registration from RBI is not a direct requirement for the DLA itself, but rather for the entities operating as lenders or intermediaries.

Tightening monetary policy (e.g., by increasing interest rates) makes borrowing more expensive, which can reduce investment and consumption, leading to a deceleration of economic growth in the short term.

The Repo Rate is a key policy rate through which the RBI influences liquidity and interest rates in the economy to manage inflation.

The primary objective of RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth.

GDP growth projections are provided by a range of entities including central banks (like RBI), international organizations (like IMF, World Bank), government bodies, and private financial institutions/rating agencies.

Strong domestic demand, driven by consumption and investment, is a significant contributor to India's GDP growth.

'Robust expansion' signifies a strong and healthy increase in economic activity, leading to high GDP growth.