MCQs: RBI Monetary Policy & Green Hydrogen PLI (Oct 2026)

1.

Which of the following is NOT a direct benefit expected from the implementation of the PLI Scheme for Green Hydrogen?

A Reduction in fossil fuel imports.

B Creation of new employment opportunities.

C Increase in crude oil production.

D Contribution to India's decarbonization goals.

2.

What is the primary objective of the Production Linked Incentive (PLI) Scheme for the Green Hydrogen Sector?

A To promote the import of green hydrogen technology.

B To incentivize domestic manufacturing of electrolysers and production of green hydrogen.

C To provide subsidies for fossil fuel-based hydrogen production.

D To establish international collaborations for nuclear energy.

3.

The recently launched PLI Scheme for the Green Hydrogen Sector is a component of which larger national initiative?

A National Solar Mission

B National Green Hydrogen Mission

C National Electric Mobility Mission

D National Biofuel Policy

4.

Which body is primarily responsible for determining the policy repo rate in India?

A The Ministry of Finance

B The Indian Banks' Association (IBA)

C The Monetary Policy Committee (MPC)

D The Securities and Exchange Board of India (SEBI)

5.

Given the RBI's decision to maintain the Repo Rate at 6.5% amidst inflation concerns, what is the likely immediate impact on commercial banks' borrowing costs from the RBI?

A They will increase significantly.

B They will decrease significantly.

C They will remain unchanged.

D They will become negative.

6.

What does the term 'Repo Rate' primarily refer to in the context of the Reserve Bank of India's monetary policy?

A The rate at which commercial banks lend money to the RBI.

B The rate at which the RBI lends money to commercial banks.

C The rate at which commercial banks lend money to their customers.

D The rate at which the government borrows from the RBI.

Economy & Business MCQs - 2026-10-06