Economy & Business MCQs - 2026-08-29

Interest subvention on export credit (e.g., pre-shipment and post-shipment credit) is a common incentive provided by the government to reduce the cost of borrowing for exporters, making their products more competitive. Other common incentives include duty remission schemes and tax benefits.

The Ministry of Commerce and Industry is the nodal ministry responsible for India's foreign trade policy, including the formulation and implementation of various schemes to promote exports.

Government schemes to boost exports are designed to make domestic products more competitive in international markets, thereby increasing India's share in global trade and earning foreign exchange.

Maintaining a "status quo" means that the Monetary Policy Committee has decided to keep the key policy rates, such as the repo rate, reverse repo rate, and bank rate, unchanged from their previous levels.

The primary objective of the MPC is to maintain price stability while keeping in mind the objective of growth. The current inflation target is 4% with a band of +/- 2%.

The Monetary Policy Committee (MPC) consists of six members: three officials from the RBI and three external members nominated by the Government of India. This structure is mandated by the RBI Act, 1934.