UPSC/SSC/Banking MCQs: RBI Lending, Manufacturing, Forex Reserves

1.

What is a common reason cited in 2026 for the significant increase in India's foreign exchange reserves?

A A sharp decline in exports.

B Increased foreign institutional investment (FII) inflows and robust remittances.

C Reduced foreign direct investment (FDI).

D A widening current account deficit.

2.

A record high in foreign exchange reserves in 2026 generally indicates a strong position for the Indian economy. What is one of the key benefits of having substantial foreign exchange reserves?

A Increased vulnerability to external economic shocks.

B Ability to manage currency volatility and meet import needs.

C Reduced capacity for foreign investment.

D Higher inflation rates.

3.

In 2026, India's foreign exchange reserves have touched a record high. What is a primary component of India's foreign exchange reserves?

A Domestic currency (Indian Rupees).

B Gold and foreign currency assets.

C Government bonds denominated in Indian Rupees.

D Cryptocurrencies held by the RBI.

4.

Besides financial incentives, what other measure might the government consider in 2026 to support the manufacturing sector's growth?

A Reducing the availability of skilled labor.

B Streamlining regulatory processes and improving infrastructure.

C Increasing the complexity of land acquisition laws.

D Discouraging technological adoption.

5.

The government's focus on boosting the manufacturing sector in 2026 is often linked to which broader economic objective?

A Increasing reliance on imported goods.

B Reducing the services sector's contribution to GDP.

C Achieving 'Atmanirbhar Bharat' (Self-Reliant India) and creating employment.

D Decreasing foreign direct investment.

6.

In 2026, the Indian government is considering new incentives to boost the manufacturing sector. Which of the following is a likely component of such an incentive scheme, aimed at enhancing domestic production?

A Increasing import duties on all raw materials.

B Providing Production Linked Incentives (PLI) for specific manufacturing sectors.

C Reducing subsidies for research and development.

D Imposing stricter environmental regulations without any support measures.

7.

A significant aspect of the RBI's 2026 digital lending norms is the prohibition of certain practices. Which of the following is explicitly prohibited for digital lending entities under these norms?

A Collecting loan amounts through UPI.

B Charging interest rates below the repo rate.

C Automated top-up loans without explicit consent.

D Disclosing loan terms in regional languages.

8.

As per the RBI's tightened digital lending norms in 2026, which entity is primarily responsible for ensuring that all loan disbursals and repayments are executed only through bank accounts of the digital lending entity and its customers?

A The borrower's employer.

B The digital lending entity.

C The Credit Information Companies (CICs).

D The Ministry of Finance.

9.

In 2026, the Reserve Bank of India (RBI) tightened digital lending norms. Which of the following is a key objective of these revised norms aimed at consumer protection?

A To encourage the proliferation of unregulated digital lending apps.

B To ensure transparency in fees and charges, and prevent predatory lending practices.

C To reduce the overall credit availability in the economy.

D To allow lending to customers without any prior KYC verification.

Economy & Business MCQs - 2026-08-18