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MCQs 2026

121.
Why is a stable inflation environment crucial for the economy?
A It encourages speculative investments
B It leads to higher interest rates for borrowers
C It supports investment decisions, consumer spending, and economic predictability
D It benefits only large corporations
122.
What does the RBI's 'withdrawal of accommodation' policy signify?
A An expansionary monetary policy
B A stance aimed at reducing liquidity in the system
C A focus on increasing borrowing
D A signal for immediate interest rate cuts
123.
Which factor is contributing to the moderation of headline inflation in India?
A Rising global energy prices
B Increased domestic demand outpacing supply
C Better food supply management and stable global energy prices
D Depreciation of the Indian Rupee
124.
What is the current stance of the RBI's Monetary Policy Committee (MPC) on the policy repo rate?
A To significantly reduce the repo rate
B To maintain the current policy repo rate
C To rapidly increase the repo rate
D To abolish the policy repo rate
125.
What is the primary objective of the Reserve Bank of India (RBI) regarding inflation?
A To maintain inflation above 6%
B To ensure inflation progressively aligns with the target of 4%
C To allow inflation to fluctuate freely
D To keep inflation below 2%
126.
How does India's economic growth contribute to the global economy?
A By increasing global inflation
B By becoming a major consumer market and investment destination
C By reducing global trade volumes
D By exporting low-value goods
127.
Which sectors are identified as key contributors to India's economic expansion?
A Agriculture and mining
B Manufacturing and services
C Textiles and construction
D IT and healthcare
128.
What is a significant impact of sustained GDP growth on India?
A Decreased per capita income and reduced employment
B Increased reliance on foreign aid and lower investment
C Enhanced per capita income, job creation, and attraction of foreign investment
D Stagnation in key economic sectors and reduced business opportunities
129.
Which factors are primarily driving India's projected GDP growth in FY27?
A Declining exports and reduced government spending
B Strong domestic consumption and increased capital expenditure
C Lower inflation and stable global commodity prices
D Increased foreign debt and reduced private investment
130.
What is the projected GDP growth rate for India in FY27 by major economic agencies?
A Approximately 6.0-6.5%
B Approximately 7.0-7.5%
C Approximately 8.0-8.5%
D Approximately 5.5-6.0%