Economy & Business Current Affairs MCQs

1.

A steady growth in India's Industrial Production Index (IIP) generally indicates:

A A slowdown in the services sector.

B Increased economic activity and demand in the industrial sector.

C A decline in consumer spending.

D Reduced government investment in infrastructure.

2.

The Index of Industrial Production (IIP) is released by which government agency in India?

A Reserve Bank of India (RBI)

B Ministry of Finance

C National Statistical Office (NSO)

D Ministry of Commerce and Industry

3.

India's Index of Industrial Production (IIP) has shown steady growth. Which sector typically contributes the most to the IIP growth in India?

A Agriculture

B Services

C Manufacturing

D Construction

4.

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

A It will decrease significantly.

B It will remain unchanged.

C It will increase moderately.

D It will become zero.

5.

Which committee of the RBI is responsible for deciding the policy repo rate?

A Board for Financial Supervision (BFS)

B Monetary Policy Committee (MPC)

C Advisory Committee on Capital Account Management

D Standing Committee on Finance

6.

As of early 2026, the Reserve Bank of India (RBI) has maintained the repo rate. What is the primary reason cited by the RBI for this decision, considering ongoing inflationary pressures?

A To stimulate export growth and improve the trade balance.

B To anchor inflation expectations and ensure price stability.

C To reduce the cost of borrowing for public sector banks.

D To encourage foreign direct investment inflows.

Economy & Business MCQs - 2026-09-08