UPSC/SSC/Banking MCQs: RBI, Economy, Inflation

111.

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.

112.

How many members constitute the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI)?

A Six

B Five

C Seven

D Eight

113.

What is the primary objective of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC)?

A To achieve price stability while keeping in mind the objective of growth.

B To maximize government revenue through taxation.

C To regulate the stock market and ensure investor protection.

D To manage foreign exchange reserves for trade balance.

114.

As of the latest Monetary Policy Committee (MPC) review in 2026, what is the current Repo Rate maintained by the Reserve Bank of India (RBI)?

A 6.50%

B 6.25%

C 6.75%

D 7.00%

115.

The RBI's decision to conduct Open Market Operations in August 2026 indicated a stance aimed at:

A Tightening monetary policy

B Easing monetary policy

C Maintaining status quo in monetary policy

D Implementing fiscal stimulus

116.

What was the primary objective of the RBI's liquidity management strategy in August 2026?

A To curb inflation by absorbing excess liquidity

B To stimulate economic growth by injecting liquidity

C To maintain the stability of the Indian Rupee

D To reduce the government's borrowing costs

117.

In August 2026, the Reserve Bank of India (RBI) primarily used which of the following tools to manage liquidity in the banking system?

A Open Market Operations (OMOs)

B Cash Reserve Ratio (CRR) adjustments

C Statutory Liquidity Ratio (SLR) adjustments

D Reverse Repurchase Agreements (Reverse Repo)

118.

Compared to July 2026, the retail inflation rate in August 2026 showed a:

A Significant increase

B Slight decrease

C No significant change

D Sharp decline

119.

Which category contributed the most to the retail inflation in August 2026, as indicated by the CPI data?

A Food and Beverages

B Housing

C Transport and Communication

D Clothing and Footwear

120.

As per the latest data released in September 2026, what was the approximate year-on-year retail inflation rate (CPI) in India for August 2026?

A 4.8%

B 5.2%

C 5.5%

D 4.5%

Economy & Business MCQs