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

171.

What does it mean when retail inflation shows signs of moderation in August 2026?

A The rate at which prices are increasing is slowing down.

B Prices of goods and services are falling significantly.

C Inflation has completely stopped.

D The cost of living has decreased.

172.

Maintaining the repo rate at 6.5% in August 2026 is generally indicative of the RBI's stance on which of the following?

A Aggressive monetary easing to boost growth

B Tightening monetary policy to control inflation

C A neutral stance, balancing growth and inflation concerns

D Focusing solely on exchange rate stability

173.

Which committee of the RBI is responsible for deciding the repo rate in its bi-monthly policy reviews?

A Financial Stability and Development Council (FSDC)

B Monetary Policy Committee (MPC)

C Securities and Exchange Board of India (SEBI)

D Reserve Bank of India Board

174.

In its August 2026 policy review, the Reserve Bank of India (RBI) decided to maintain the repo rate at what percentage?

A 6.25%

B 6.50%

C 6.75%

D 7.00%

175.

What does the term 'Repo Rate' signify in the context of the Reserve Bank of India's monetary policy?

A The rate at which commercial banks borrow money from the RBI by selling securities with an agreement to repurchase them.

B The rate at which the RBI borrows money from commercial banks.

C The rate at which commercial banks lend money to their customers.

D The rate at which the government borrows money from the public.

176.

Maintaining the Repo Rate at 6.50% for the seventh consecutive time primarily reflects the RBI's focus on which of the following objectives?

A Ensuring price stability while supporting growth.

B Boosting exports through a weaker rupee.

C Increasing government revenue through higher taxes.

D Reducing the fiscal deficit significantly.

177.

As per the recent announcement, what is the current Repo Rate maintained by the Reserve Bank of India (RBI) for the seventh consecutive time?

A 6.50%

B 6.25%

C 6.75%

D 7.00%

178.

A projected GDP growth of 7.0% for FY 2026-27 by the RBI suggests what about the overall economic environment in India?

A The economy is expected to face a recession.

B The economy is anticipated to experience moderate to strong expansion.

C Economic activity is projected to stagnate.

D There are significant concerns about external economic shocks.

179.

What factors are likely contributing to the RBI's optimistic projection of 7.0% GDP growth for FY 2026-27?

A A significant slowdown in global manufacturing.

B Robust domestic demand, increased capital expenditure, and improved rural demand.

C A sharp decline in government spending.

D Reduced agricultural output due to adverse weather conditions.

180.

According to the Reserve Bank of India's projections in 2026, what is the anticipated GDP growth rate for the Financial Year 2026-27?

A 6.5%

B 7.0%

C 7.5%

D 6.8%

Economy & Business MCQs