Economy & Business MCQs - 2026-09-18

Maintaining the repo rate when inflation is stable suggests that the RBI is comfortable with the current inflation trajectory and is likely prioritizing supporting economic growth, as there is no immediate need to either tighten (increase rates) or significantly loosen (decrease rates) monetary policy to manage prices.

The Monetary Policy Committee (MPC) is chaired by the Governor of the Reserve Bank of India. The MPC is entrusted with the task of fixing the policy repo rate to achieve the inflation target.

The Repo Rate is the rate at which commercial banks borrow money from the Reserve Bank of India. It is a key tool used by the RBI to control money supply, manage liquidity, and influence inflation in the economy.

Strong performance and growth in key productive sectors like manufacturing and services are crucial drivers for sustained GDP growth momentum in developing economies, as they contribute significantly to output, employment, and income.

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), is the primary agency responsible for compiling and releasing India's GDP data.

GDP growth momentum refers to the sustained upward trend in the rate at which a country's Gross Domestic Product is increasing, indicating robust and continuous economic expansion.