MCQs: Economy & Business Current Affairs (Oct 2026)

1.

The Indian government's Production Linked Incentive (PLI) schemes, launched across various sectors, are primarily aimed at boosting which aspect of industrial performance?

A Reducing import dependency and enhancing domestic manufacturing

B Increasing agricultural output

C Stabilizing commodity prices

D Promoting financial literacy

2.

Among the three broad sectors that constitute the Index of Industrial Production (IIP) in India, which sector holds the highest weightage?

A Mining

B Manufacturing

C Electricity

D Construction

3.

Which of the following indices is primarily used to measure the performance of India's industrial sector?

A Consumer Price Index (CPI)

B Wholesale Price Index (WPI)

C Index of Industrial Production (IIP)

D Purchasing Managers' Index (PMI)

4.

What is the current medium-term inflation target set by the Government of India for the Reserve Bank of India, which the MPC is mandated to achieve?

A 2% with a band of +/- 1%

B 4% with a band of +/- 2%

C 6% with a band of +/- 2%

D 5% with a band of +/- 1%

5.

In early 2026, if the Reserve Bank of India's Monetary Policy Committee (MPC) maintains a "withdrawal of accommodation" stance, what does it primarily signal regarding its future policy direction?

A Likelihood of further rate hikes

B Expectation of rate cuts

C Neutral stance

D Focus on liquidity injection

6.

What is the primary objective of the Reserve Bank of India's Monetary Policy Committee (MPC) as per its mandate?

A Price stability

B Economic growth

C Exchange rate management

D Financial inclusion

Economy & Business MCQs - 2026-10-03