Economy & Business MCQs: RBI Policy and Inflation Oct 2026

1.

If retail inflation in October 2026 shows a declining trend, what is a likely consequence for consumers?

A Reduced purchasing power

B Increased cost of living

C Higher savings potential

D Decreased demand for essential goods

2.

Which category of goods and services typically has the largest weightage in India's Consumer Price Index (CPI) basket?

A Fuel and Light

B Food and Beverages

C Clothing and Footwear

D Housing

3.

As per the October 2026 update, what was the primary trend observed in India's retail inflation (CPI)?

A Significant decrease

B Steady increase

C Moderation or stabilization

D Volatile fluctuations

4.

Maintaining the repo rate at 6.5% in October 2026 is generally indicative of the RBI's stance on which of the following?

A Aggressive monetary easing

B Tightening of liquidity

C A balanced approach to manage inflation and growth

D Focus on currency depreciation

5.

Which committee of the RBI is responsible for deciding the repo rate in its bi-monthly policy reviews?

A Board for Financial Supervision (BFS)

B Monetary Policy Committee (MPC)

C Advisory Committee on Capital Markets

D Standing Committee on Finance

6.

In its October 2026 policy review, the Reserve Bank of India (RBI) decided to maintain the repo rate at what percentage?

A 6.25%

B 6.50%

C 6.75%

D 7.00%

Economy & Business MCQs - 2026-10-15