Economy & Business MCQs - 2026-09-29

NEEDS_REVIEW

The Repo Rate is a key quantitative tool through which the RBI injects or absorbs liquidity in the banking system, influencing interest rates and credit availability. Moral suasion, direct action, and rationing of credit are qualitative tools.

The primary objective of the MPC is to maintain price stability, which is crucial for sustainable growth. The flexible inflation targeting framework mandates the RBI to keep inflation within a specified target band.

NEEDS_REVIEW

India's GDP growth is influenced by a multitude of factors. Monsoon performance impacts agriculture, global crude oil prices affect inflation and trade balance, and government capital expenditure boosts infrastructure and economic activity. All these are crucial for projections.

The Reserve Bank of India (RBI) regularly publishes its GDP growth projections as part of its monetary policy statements and other economic reports. While NSO provides official GDP estimates, RBI, IMF, World Bank, etc., provide forward-looking projections.