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

81.

The Indian government has recently launched a new export incentive scheme specifically aimed at boosting exports from which sector?

A Large-scale manufacturing industries

B Micro, Small and Medium Enterprises (MSMEs)

C Agricultural sector

D Service sector startups

82.

The decision to maintain the repo rate at 6.5% in August 2026 was taken by which body of the Reserve Bank of India?

A Board of Directors

B Executive Committee

C Monetary Policy Committee (MPC)

D Financial Stability and Development Council (FSDC)

83.

What is the primary objective of maintaining the repo rate at 6.5% by the RBI in August 2026, as per its policy review?

A To stimulate economic growth aggressively.

B To control inflation and ensure price stability.

C To increase the value of the Indian Rupee.

D To reduce the government's borrowing costs.

84.

In its August 2026 Monetary Policy Committee (MPC) meeting, 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%

85.

If India's inflation rate continues to rise marginally in 2026, what is a potential consequence for consumers?

A Increased purchasing power of their savings.

B Reduced real value of money and decreased purchasing power.

C Lower prices for essential goods and services.

D Greater incentive to save money in bank accounts.

86.

A marginal increase in India's inflation rate in 2026 could be attributed to several factors. Which of the following is a common cause of demand-pull inflation?

A A significant decrease in consumer spending.

B An increase in the supply of goods and services.

C Increased government spending or a surge in private investment.

D A decrease in aggregate demand.

87.

In early 2026, India's inflation rate, as measured by the Consumer Price Index (CPI), showed a marginal increase. What is the typical primary tool used by the Reserve Bank of India (RBI) to manage inflation?

A Fiscal Deficit Management

B Monetary Policy Tools (e.g., Repo Rate)

C Direct Price Controls

D Export-Import Policy Adjustments

88.

Which of the following policy measures, considered by the government in 2026, would directly support the development of advanced manufacturing capabilities?

A Imposing stricter environmental regulations without providing compliance support.

B Investing in R&D and providing tax credits for technology adoption.

C Reducing funding for skill development programs.

D Discouraging collaborations between industry and academia.

89.

The government's focus on boosting the manufacturing sector in 2026 is likely aligned with which national economic objective?

A Increasing reliance on imported goods.

B Reducing unemployment and promoting 'Make in India'.

C Decreasing foreign direct investment (FDI).

D Promoting a service-dominated economy at the expense of manufacturing.

90.

In 2026, the Indian government is considering new incentives to boost the manufacturing sector. Which of the following is a likely component of such an incentive scheme, aimed at promoting domestic production?

A Increased import duties on essential raw materials.

B Reduction in corporate tax rates for manufacturing units.

C Mandatory export quotas for all manufactured goods.

D Abolition of all subsidies for the sector.

Economy & Business MCQs