Economy and Business MCQs: July 2026 Current Affairs Practice

31.

What is the primary objective of maintaining the repo rate at the current level by the RBI, as per recent policy statements in early 2026?

A To stimulate economic growth by reducing borrowing costs.

B To control inflation and anchor inflation expectations.

C To increase liquidity in the banking system.

D To manage the exchange rate of the Indian Rupee.

32.

Which committee of the RBI is responsible for deciding the repo rate?

A Monetary Policy Committee (MPC)

B Financial Stability and Development Council (FSDC)

C Advisory Committee on Capital Markets

D Board for Financial Supervision (BFS)

33.

As of early 2026, the Reserve Bank of India (RBI) has maintained the repo rate at what level amidst persistent inflationary concerns?

A 6.50%

B 6.75%

C 6.25%

D 6.00%

34.

A sustained surge in the manufacturing sector typically leads to which of the following economic benefits for a country like India?

A Increased import dependence and higher trade deficit.

B Higher unemployment rates and reduced GDP growth.

C Job creation, increased exports, and enhanced GDP contribution.

D Decreased foreign exchange reserves and capital outflow.

35.

Which government initiative has been instrumental in boosting domestic manufacturing and attracting investments across various sectors in India?

A Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

B Production Linked Incentive (PLI) Scheme

C Pradhan Mantri Jan Dhan Yojana (PMJDY)

D National Health Mission (NHM)

36.

Which two factors are primarily credited for the recent surge in India's manufacturing sector?

A Declining global trade and reduced foreign direct investment.

B Strong domestic demand and supportive government policies.

C Increased reliance on imported raw materials and skilled labor shortage.

D High inflation rates and a depreciating rupee.

37.

Alternative Investment Funds (AIFs) in India are primarily characterized as:

A Publicly traded mutual funds regulated by IRDAI.

B Privately pooled investment vehicles investing in diverse assets.

C Government-backed pension funds for public sector employees.

D Retail investment schemes for small individual investors.

38.

Which of the following is a key area where SEBI is likely to introduce stricter norms for AIFs, particularly concerning investor protection?

A Mandating AIFs to invest only in government securities.

B Requiring direct payout of distributions to investors and enhanced disclosure of fees and expenses.

C Eliminating the need for AIFs to register with SEBI.

D Allowing AIFs to lend directly to retail customers.

39.

What is a primary reason for SEBI considering stricter norms for Alternative Investment Funds (AIFs)?

A To encourage more retail investors into AIFs.

B Concerns over transparency, valuation practices, and potential for evergreening of loans.

C To reduce the overall capital available for startups.

D To align Indian AIF regulations with global cryptocurrency norms.

40.

A key provision in the RBI's digital lending guidelines to enhance borrower protection is the introduction of a 'cooling-off period'. What does this period allow borrowers to do?

A Negotiate a lower interest rate with the lender.

B Exit the loan by repaying the principal without penalty.

C Apply for an additional top-up loan.

D Extend the loan tenure without extra charges.

Economy & Business MCQs