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MCQs - 2026-03

2781.
What is the primary role of the RBI in managing inflation?
A To actively increase inflation for economic stimulus
B To maintain price stability through monetary policy
C To encourage borrowing without regard to inflation
D To focus solely on economic growth without considering price levels
2782.
The stabilization of inflation is considered a significant achievement because it:
A Leads to economic instability
B Provides a predictable economic environment
C Increases the cost of borrowing
D Discourages international trade
2783.
Which of the following categories has seen moderate increases in prices, according to the article?
A Food and beverages
B Housing and healthcare
C Clothing and footwear
D Transportation
2784.
The article suggests that inflation has remained within:
A Unpredictable levels
B Unmanageable limits
C Manageable limits
D Record high levels
2785.
Which government measures have been key to achieving favorable inflation outcomes?
A Increasing import duties on essential goods
B Proactive management of food inflation and efficient logistics
C Reducing subsidies on agricultural inputs
D Limiting the production of essential commodities
2786.
A controlled inflation environment is crucial for:
A Decreasing consumer spending
B Discouraging investment
C Boosting consumer spending and encouraging investment
D Reducing export competitiveness
2787.
How has the RBI responded to the stable inflation environment?
A Aggressively increasing interest rates
B Maintaining a balanced approach to monetary policy
C Reducing the money supply significantly
D Encouraging higher inflation for growth
2788.
Which of the following factors has NOT been cited as influencing the CPI moderation?
A Stable food prices
B Rising global commodity prices
C Effective supply-side management
D Easing global commodity prices
2789.
What is a significant benefit of the stabilized inflation rate?
A Increased uncertainty for businesses
B Relief to consumers and a stable economic planning environment
C Reduced consumer spending
D Decreased competitiveness of Indian exports
2790.
What was the approximate inflation rate in India during FY 2025-26?
A 3.0%
B 4.5%
C 5.5%
D 6.0%