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Economy & Business MCQs - 2026-04-02

21.
The National Payments Corporation of India (NPCI) plays a crucial role in:
A Setting interest rates for commercial banks.
B Regulating the stock market.
C Developing and operating retail payment systems like UPI and RuPay.
D Issuing new currency notes.
22.
What does CBDC stand for in the context of digital currencies?
A Centralized Bank Digital Currency
B Commercial Bank Digital Currency
C Central Bank Digital Currency
D Community Bank Digital Currency
23.
Which of the following is a significant challenge facing India's digital payments ecosystem?
A Excessive government regulation hindering innovation.
B Low adoption rates among the urban population.
C Cybersecurity threats and the digital divide.
D Lack of interoperability between payment systems.
24.
The primary objective of initiatives like 'Digital India' in the context of payments is to:
A Increase the circulation of physical currency.
B Promote digital literacy and access to digital services, including payments.
C Restrict online financial transactions.
D Encourage the use of cheques for all transactions.
25.
Which of the following is a key payment system developed in India that has revolutionized mobile-based transactions?
A SWIFT
B RTGS
C NEFT
D Unified Payments Interface (UPI)
26.
The term 'withdrawal of accommodation' in monetary policy typically signifies:
A An expansionary monetary policy stance.
B A neutral monetary policy stance.
C A tightening monetary policy stance, aiming to reduce liquidity.
D A focus solely on increasing economic growth.
27.
The current inflation target band for the RBI is generally considered to be:
A 0-2%
B 2-6%
C 4-8%
D 6-10%
28.
If the RBI's MPC decides to increase the policy repo rate, what is the most likely immediate effect on the economy?
A Increased liquidity and lower borrowing costs.
B Reduced liquidity and higher borrowing costs for consumers and businesses.
C Stimulated investment and consumption.
D Decreased inflation due to increased money supply.
29.
Which body is responsible for setting the policy repo rate in India?
A The Ministry of Finance.
B The Securities and Exchange Board of India (SEBI).
C The Monetary Policy Committee (MPC).
D The NITI Aayog.
30.
The primary objective of the Reserve Bank of India (RBI) as per its mandate is to:
A Maximize economic growth at all costs.
B Maintain price stability while keeping in mind the objective of growth.
C Ensure a fixed exchange rate for the Indian Rupee.
D Regulate the stock market exclusively.