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MCQs - 2026-04

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English
4651.
While overall inflation is stable, which categories have seen moderate price increases?
A Food and beverages
B Transportation and fuel
C Education and healthcare
D Clothing and footwear
4652.
Which of the following factors contributed to the stabilization of inflation?
A Volatile global commodity prices
B Effective monetary policy measures by the RBI and a good monsoon season
C Rising food prices due to poor monsoon
D Increased government spending without control
4653.
The RBI's mandated target band for inflation is:
A 1-4%
B 2-6%
C 3-7%
D 4-8%
4654.
What is the approximate inflation rate in India for FY 2025-26, as measured by CPI?
A 3.0%
B 4.5%
C 5.5%
D 6.5%
4655.
What does 'fiscal space' refer to in this context?
A Limited ability of the government to spend
B The flexibility of the government to increase spending or cut taxes
C The amount of debt the government can accumulate
D The total revenue collected by the government
4656.
What is the projected trend for the fiscal deficit in the subsequent fiscal year?
A To increase significantly
B To remain the same
C To be even lower
D To become a surplus
4657.
The government's focus on fiscal prudence indicates a commitment to:
A Increasing the national debt
B Sustainable levels of deficit and debt
C Uncontrolled government spending
D Reducing investment in infrastructure
4658.
What does 'fiscal consolidation' refer to?
A Increasing government spending without limit
B Reducing the government's budget deficit and debt
C Increasing taxes significantly
D Borrowing excessively
4659.
A reduced fiscal deficit can potentially lead to:
A A downgrade in sovereign credit rating
B A better sovereign credit rating
C Increased borrowing costs for the government
D Reduced fiscal space
4660.
An improved fiscal position is expected to enhance:
A Government debt levels
B Macroeconomic stability
C Inflationary pressures
D Currency depreciation