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

191.

What is the primary purpose of the 'cooling-off' period introduced by RBI in its digital lending guidelines?

A To allow lenders to assess the borrower's creditworthiness more thoroughly.

B To provide a window for borrowers to exit the loan by paying the principal and proportionate APR without penalty.

C To facilitate faster processing of loan applications by digital lenders.

D To enable the RBI to review the terms and conditions of digital loans.

192.

Under the Reserve Bank of India's (RBI) digital lending guidelines, which entity is primarily responsible for all loan disbursements and repayments?

A Lending Service Providers (LSPs)

B Payment Gateways

C Regulated Entities (REs)

D Third-party aggregators

193.

The Monetary Policy Committee (MPC) of the Reserve Bank of India, responsible for setting the repo rate, consists of how many members?

A Five members, all from the RBI.

B Six members, three from the RBI and three external members appointed by the Government of India.

C Seven members, four from the RBI and three external members.

D Eight members, including the Union Finance Minister.

194.

What does the RBI's decision to maintain the repo rate at 6.5% for the seventh consecutive time typically indicate about its monetary policy stance?

A An accommodative stance, signaling future rate cuts.

B A hawkish stance, indicating further rate hikes are imminent.

C A neutral stance, suggesting a pause in the rate cycle to assess economic conditions.

D A dovish stance, prioritizing growth over inflation control.

195.

The Reserve Bank of India's Monetary Policy Committee (MPC) maintaining the repo rate at 6.5% for the seventh consecutive time primarily aligns with which of its mandated objectives?

A Promoting rapid economic growth

B Ensuring price stability

C Managing the government's fiscal deficit

D Stabilizing the Indian Rupee's exchange rate

196.

What is the current inflation target mandated for the Reserve Bank of India (RBI) by the Government of India, as of 2026?

A 2% with a band of +/- 1%.

B 4% with a band of +/- 2%.

C 6% with a band of +/- 2%.

D 8% with no specific band.

197.

Amidst global economic volatility in 2026, which of the following factors is most likely to contribute to inflationary pressures in India?

A A significant decrease in global crude oil prices.

B A robust monsoon leading to record agricultural output.

C Supply chain disruptions and elevated international commodity prices.

D A sustained appreciation of the Indian Rupee against major currencies.

198.

What is the primary monetary policy tool the Reserve Bank of India (RBI) uses to manage inflationary trends in the Indian economy as of 2026?

A Fiscal policy adjustments by the government.

B Adjusting the Repo Rate.

C Direct price controls on essential commodities.

D Increasing government spending on infrastructure projects.

199.

As of 2026, which of the following sectors is NOT among the key sectors covered under the enhanced Production Linked Incentive (PLI) scheme?

A Automobiles and Auto Components.

B Advanced Chemistry Cell (ACC) Battery.

C Textiles and Apparel.

D Primary Agricultural Produce Export.

200.

How does the Production Linked Incentive (PLI) scheme typically incentivize manufacturers?

A By offering interest-free loans for setting up new factories.

B By providing a percentage of incremental sales from products manufactured in India.

C By granting direct tax exemptions to all participating companies.

D By subsidizing the cost of imported machinery for manufacturing.

Economy & Business MCQs