Economy & Business MCQs

The Monetary Policy Committee (MPC) is a six-member committee headed by the RBI Governor that is entrusted with the task of fixing the benchmark interest rate (repo rate) in India.

The primary objective of the RBI's monetary policy, including setting the Repo Rate, is to maintain price stability (control inflation) while keeping in mind the objective of growth. It also manages liquidity in the banking system.

The topic explicitly states that the RBI maintains the Repo Rate at 6.5%.

The Mid-Year Economic Review for FY 2026-27 confirmed the government's commitment to achieving a fiscal deficit of 5.2% of GDP for the fiscal year.

While real estate contributes to the economy, the Mid-Year Review for FY 2026-27 primarily emphasized the strong performance of manufacturing, services, and a resilient agriculture sector as key growth drivers.

The Mid-Year Economic Review for FY 2026-27 projected a GDP growth rate of 7.2% for the full fiscal year, citing robust domestic demand and improved global economic conditions.

The primary objective of the RBI's monetary policy is to maintain price stability while having due regard to the objective of growth. This principle underpins decisions made in policy reviews.

The 'withdrawal of accommodation' stance aims to gradually reduce the excess liquidity in the system to ensure that inflation progressively aligns with the target, while still supporting economic growth.

The RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.50% in its September 2026 review.

A PLI scheme for green energy components would focus on incentivizing the manufacturing of parts used in renewable energy technologies like solar panels and wind turbines.