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

181.

The decision to keep the repo rate unchanged for the seventh consecutive time indicates the Monetary Policy Committee's assessment of which economic factor?

A A significant decrease in global commodity prices.

B Persistent inflationary pressures and the need for continued vigilance.

C A sharp decline in the country's foreign exchange reserves.

D A robust and self-sustaining recovery in domestic demand.

182.

What is the primary objective of the RBI in maintaining the repo rate at its current level for an extended period?

A To stimulate rapid economic expansion.

B To control inflation while supporting growth.

C To encourage foreign direct investment.

D To reduce the fiscal deficit.

183.

As of the latest Monetary Policy Committee (MPC) meeting in 2026, the Reserve Bank of India (RBI) has maintained the repo rate at what percentage for the seventh consecutive time?

A 6.25%

B 6.50%

C 6.75%

D 7.00%

184.

When aggregate demand in an economy outpaces aggregate supply, leading to a general rise in prices, this phenomenon is known as:

A Cost-push inflation

B Stagflation

C Demand-pull inflation

D Hyperinflation

185.

Which of the following is a quantitative tool used by the Reserve Bank of India (RBI) to control inflation?

A Moral Suasion

B Direct Action

C Repo Rate

D Selective Credit Control

186.

What is the primary objective of the Reserve Bank of India's (RBI) monetary policy framework?

A To maximize employment opportunities in the country.

B To maintain exchange rate stability of the Indian Rupee.

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

D To manage the government's public debt effectively.

187.

Which of the following sectors has been a significant beneficiary and early success story under the Production Linked Incentive (PLI) scheme, particularly in boosting domestic production and exports?

A Tourism and Hospitality

B Information Technology Services

C Mobile Phone Manufacturing

D Renewable Energy Generation

188.

Under the PLI scheme, incentives are typically provided based on which of the following criteria?

A The total capital investment made by the company in a financial year.

B The number of new employees hired by the manufacturing unit.

C Incremental sales of manufactured goods over a base year.

D The amount of research and development expenditure incurred by the company.

189.

What is the primary objective of the Production Linked Incentive (PLI) scheme launched by the Indian government?

A To reduce the fiscal deficit by cutting government expenditure.

B To promote agricultural exports and ensure food security.

C To boost domestic manufacturing, create jobs, and make Indian industries globally competitive.

D To regulate foreign direct investment (FDI) in critical sectors.

190.

Which of the following statements is true regarding First Loss Default Guarantee (FLDG) arrangements under RBI's revised digital lending guidelines?

A FLDG is completely prohibited for all digital lending activities.

B FLDG is allowed only between banks and non-banking financial companies (NBFCs).

C FLDG is permitted between Regulated Entities and Lending Service Providers under specific conditions and limits.

D FLDG is mandatory for all digital loans to mitigate risk for lenders.

Economy & Business MCQs