UPSC/SSC/Banking MCQs: RBI Repo Rate Decision & Inflation

1.

The Monetary Policy Committee (MPC) of the Reserve Bank of India, responsible for setting the repo rate, consists of how many members?

A Five members, all from the RBI.

B Six members, three from the RBI and three external members appointed by the Government of India.

C Seven members, four from the RBI and three external members.

D Eight members, including the Union Finance Minister.

2.

What does the RBI's decision to maintain the repo rate at 6.5% for the seventh consecutive time typically indicate about its monetary policy stance?

A An accommodative stance, signaling future rate cuts.

B A hawkish stance, indicating further rate hikes are imminent.

C A neutral stance, suggesting a pause in the rate cycle to assess economic conditions.

D A dovish stance, prioritizing growth over inflation control.

3.

The Reserve Bank of India's Monetary Policy Committee (MPC) maintaining the repo rate at 6.5% for the seventh consecutive time primarily aligns with which of its mandated objectives?

A Promoting rapid economic growth

B Ensuring price stability

C Managing the government's fiscal deficit

D Stabilizing the Indian Rupee's exchange rate

Economy & Business MCQs - 2026-08-04