MCQs: Indian Economy & Business Current Affairs (Sept 2026)

1.

If India's retail inflation eases slightly, what is a potential positive impact on the economy?

A Increased purchasing power for consumers.

B Higher interest rates by commercial banks.

C Reduced foreign direct investment (FDI).

D Decreased exports due to higher domestic prices.

2.

What is the current inflation target range set by the Government of India for the Reserve Bank of India, which guides its monetary policy decisions?

A 2% ± 1%

B 4% ± 2%

C 6% ± 2%

D 5% ± 1%

3.

Which index is primarily used to measure India's retail inflation, as reported in August 2026?

A Wholesale Price Index (WPI)

B Producer Price Index (PPI)

C Consumer Price Index (CPI)

D Services Price Index (SPI)

4.

If the RBI maintains the repo rate, what is its immediate impact on the cost of borrowing for commercial banks from the central bank?

A The cost of borrowing remains stable.

B The cost of borrowing increases significantly.

C The cost of borrowing decreases significantly.

D Commercial banks are prohibited from borrowing from the RBI.

5.

Which body within the Reserve Bank of India is primarily responsible for deciding the repo rate and other key policy rates?

A Financial Stability and Development Council (FSDC)

B Monetary Policy Committee (MPC)

C Central Board of Directors of RBI

D Department of Economic Policy and Research (DEPR)

6.

What is the primary objective of the Reserve Bank of India (RBI) when it maintains the repo rate amidst global economic uncertainties?

A To ensure price stability and support economic growth.

B To increase government revenue through higher interest earnings.

C To directly control the stock market fluctuations.

D To encourage excessive borrowing by commercial banks.

Economy & Business MCQs - 2026-09-03