Economy & Business MCQs

By maintaining a high repo rate, the RBI makes borrowing costlier, which reduces money supply in the economy, thereby curbing demand-pull inflation.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, responsible for fixing the benchmark interest rate (repo rate) in India.

A declining inflation rate means that prices are rising at a slower pace, which generally leads to increased purchasing power and potentially higher savings for consumers.

Food and Beverages constitute a significant portion of the CPI basket, making their price movements highly influential on overall retail inflation.

NEEDS_REVIEW

Keeping the repo rate unchanged often signifies the RBI's attempt to balance the need to control inflation with supporting economic growth, indicating a neutral or balanced monetary policy stance.

The Monetary Policy Committee (MPC) is mandated by the RBI Act, 1934, to determine the policy repo rate required to meet the inflation target.

The RBI's Monetary Policy Committee (MPC) in its October 2026 review decided to keep the policy repo rate unchanged at 6.5%.

Digital credit platforms often incorporate advanced technologies like blockchain to ensure security, transparency, and efficiency in the lending process, which is crucial for MSMEs.

The digital platform aims to leverage technology to expedite the loan application and approval process, thereby reducing the time taken for MSMEs to access credit.