UPSC/SSC/Banking MCQs: RBI Lending, Manufacturing, Inflation

1.

If India's inflation rate continues to rise marginally in 2026, what is a potential consequence for consumers?

A Increased purchasing power of their savings.

B Reduced real value of money and decreased purchasing power.

C Lower prices for essential goods and services.

D Greater incentive to save money in bank accounts.

2.

A marginal increase in India's inflation rate in 2026 could be attributed to several factors. Which of the following is a common cause of demand-pull inflation?

A A significant decrease in consumer spending.

B An increase in the supply of goods and services.

C Increased government spending or a surge in private investment.

D A decrease in aggregate demand.

3.

In early 2026, India's inflation rate, as measured by the Consumer Price Index (CPI), showed a marginal increase. What is the typical primary tool used by the Reserve Bank of India (RBI) to manage inflation?

A Fiscal Deficit Management

B Monetary Policy Tools (e.g., Repo Rate)

C Direct Price Controls

D Export-Import Policy Adjustments

4.

Which of the following policy measures, considered by the government in 2026, would directly support the development of advanced manufacturing capabilities?

A Imposing stricter environmental regulations without providing compliance support.

B Investing in R&D and providing tax credits for technology adoption.

C Reducing funding for skill development programs.

D Discouraging collaborations between industry and academia.

5.

The government's focus on boosting the manufacturing sector in 2026 is likely aligned with which national economic objective?

A Increasing reliance on imported goods.

B Reducing unemployment and promoting 'Make in India'.

C Decreasing foreign direct investment (FDI).

D Promoting a service-dominated economy at the expense of manufacturing.

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 promoting domestic production?

A Increased import duties on essential raw materials.

B Reduction in corporate tax rates for manufacturing units.

C Mandatory export quotas for all manufactured goods.

D Abolition of all subsidies for the sector.

7.

According to the RBI's 2026 framework for digital lending, what is the prescribed cooling-off period for a borrower to withdraw from a loan agreement without penalty?

A 24 hours

B 48 hours

C 7 days

D 14 days

8.

The RBI's 2026 guidelines on digital lending aim to protect borrowers. Which of these is a key objective related to data privacy and security?

A Allowing LSPs to collect borrower data for marketing purposes without consent.

B Ensuring that DLAs do not store sensitive customer data on their servers.

C Requiring explicit consent from borrowers before collecting any personal data.

D Permitting data sharing with third-party credit bureaus without borrower knowledge.

9.

As per the latest guidelines issued by the Reserve Bank of India (RBI) in 2026 for digital lending platforms, which of the following is NOT a mandatory requirement for a Digital Lending App (DLA)?

A Disclosure of all-in-cost of loan to the borrower.

B Appointment of a Chief Compliance Officer (CCO) by the Lending Service Provider (LSP).

C Mandatory registration of all Lending Service Providers (LSPs) with the RBI.

D Prohibition of automatic credit limit enhancement without explicit consent.

Economy & Business MCQs - 2026-08-20