Economy & Business MCQs - 2026-08-13

India's Foreign Trade Policy aims to facilitate trade, reduce transaction costs, and create a supportive and enabling environment for businesses to enhance India's share in global trade and boost exports.

Diversification of the export basket and gaining access to new markets reduces reliance on specific products or regions, making exports more resilient and opening new avenues for growth. Rupee appreciation, global slowdown, and higher tariffs would generally hinder exports.

The RoDTEP scheme aims to refund various embedded central, state, and local duties/taxes that are not rebated under other schemes, thereby making Indian exports more competitive in the global market.

Category I AIFs are those which invest in start-ups, SMEs, social ventures, infrastructure, etc., and are generally considered to be 'socially desirable' by the government, often receiving incentives.

Mandating independent valuation of AIF assets is a common regulatory measure to enhance transparency, ensure fair pricing, and improve governance, thereby protecting investors.

SEBI's proposals for stricter AIF regulations are primarily aimed at safeguarding investor interests, improving governance, and increasing transparency in the operations of these funds.

A key requirement of the RBI's digital lending guidelines is the mandatory disclosure of the Annual Percentage Rate (APR) to the borrower upfront, ensuring transparency in the cost of the loan.

The Regulated Entity (RE), such as a bank or NBFC, on whose balance sheet the loan is booked, bears the ultimate responsibility for all aspects of the loan, including recovery, even if Lending Service Providers (LSPs) are involved.

The primary objective of the RBI's digital lending framework is to protect borrowers from unfair practices, enhance transparency, and ensure the orderly growth of the digital lending ecosystem.