Economy & Business MCQs

Enhanced disclosure requirements ensure that investors have access to comprehensive and timely information about the issuer's financial health and associated risks, which is crucial for informed decision-making and investor protection.

SEBI's stricter regulations are typically aimed at improving market efficiency, transparency, and liquidity, thereby fostering greater investor confidence and participation in the corporate bond market.

The RBI guidelines strictly prohibit the automatic increase in credit limits without the explicit consent of the borrower to prevent unsolicited debt and protect consumers from financial distress.

The Regulated Entity (RE) and its Lending Service Providers (LSPs) are primarily responsible for grievance redressal under the RBI's digital lending framework. Customers should first approach the RE/LSP for their complaints.

RBI's enhanced digital lending guidelines primarily aim to protect consumers by ensuring transparency in all aspects of digital loans, including interest rates, fees, and other terms, and to prevent predatory lending practices.

An improved global economic outlook, leading to higher export demand and increased foreign investment, is considered a potential upside risk that could boost India's GDP growth beyond current projections.

The services sector, encompassing IT, financial services, and trade, is projected to be the primary driver of India's GDP growth in Q2 FY2027, reflecting its increasing share in the economy.

Various economic agencies and the government have projected India's GDP growth for Q2 FY2027 to be around 7.2%, driven by robust domestic demand and improving global economic conditions.

The RBI's mandate is to keep inflation within the target range of 4% with a +/- 2% tolerance band, aiming for price stability. The September 2026 review reiterated this commitment.

The Monetary Policy Committee (MPC) is mandated by the Reserve Bank of India Act, 1934, to determine the policy repo rate required to meet the inflation target while considering the objective of maintaining price stability.