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Economy & Business

Rate decisions, regulatory changes and the economic numbers released in the last twelve months.

These questions change through the year. A question stays for twelve months; the story behind it stays in the weekly digest.

Read the current-affairs digests →

Group: Current AffairsUnder NTA's headingGeneral Knowledge, Current Affairs

The area names are NTA's. The chapters inside them are EduFarming's own division, not NTA's.

The questions

Practise this chapter

80 questions, each with its answer and a worked explanation. Do them timed, or read through.

Question 1

EasyOriginal question

At its meeting of 3 to 5 August 2026, what did the Monetary Policy Committee decide about the policy repo rate?

  1. ACut it by 25 basis points to 5.00 per cent
  2. BLeft it unchanged at 5.25 per cent
  3. CRaised it by 25 basis points to 5.50 per cent
  4. DLeft it unchanged at 6.50 per cent

Correct answer: B

Explanation

  1. The decision was unanimous, and the rate stayed at 5.25 per cent

  2. The stance was also kept neutral, which is a separate decision from the rate and is taken at the same meeting

Concept
The repo rate decision
Typical time
40 seconds
Written from
rbi.org.in

Question 2

HardOriginal question

With the repo rate at 5.25 per cent in August 2026, where did the standing deposit facility rate and the marginal standing facility rate stand?

  1. ABoth at 5.25 per cent
  2. BSDF at 5.00 per cent and MSF at 5.50 per cent
  3. CSDF at 5.50 per cent and MSF at 5.00 per cent
  4. DSDF at 4.75 per cent and MSF at 5.75 per cent

Correct answer: B

Explanation

  1. The two rates sit a quarter of a percentage point either side of the repo rate, which is what makes the liquidity adjustment facility a corridor rather than a single rate

  2. The floor is where banks park surplus funds and the ceiling is where they borrow, so the lower figure has to be the deposit side

  3. The Bank Rate moves with the ceiling, also at 5.50 per cent

Concept
The LAF corridor
Typical time
60 seconds
Written from
rbi.org.in

Question 3

MediumOriginal question

What did the Reserve Bank project for 2026-27 in its August 2026 statement?

  1. AReal GDP growth of 7.4 per cent and CPI inflation of 4.4 per cent
  2. BReal GDP growth of 5.0 per cent and CPI inflation of 6.7 per cent
  3. CReal GDP growth of 6.7 per cent and CPI inflation of 5.0 per cent
  4. DReal GDP growth of 6.4 per cent and CPI inflation of 4.3 per cent

Correct answer: C

Explanation

  1. Growth for the year was put at 6.7 per cent with risks evenly balanced, and headline inflation at 5.0 per cent

  2. Inflation had risen to 4.4 per cent in June 2026 after sixteen consecutive months below the target, which is the reading the projection was built on rather than the projection itself

  3. Core inflation was projected separately, at 4.3 per cent

Concept
Growth and inflation projections
Typical time
50 seconds
Written from
rbi.org.in

Question 4

MediumOriginal question

The Union Budget 2026-27 estimates the fiscal deficit at what share of GDP?

  1. A3.3 per cent
  2. B4.3 per cent
  3. C4.4 per cent
  4. D5.6 per cent

Correct answer: B

Explanation

  1. The Budget Estimate for 2026-27 is 4.3 per cent of GDP

  2. The Revised Estimate for 2025-26 was 4.4 per cent, the same as that year's Budget Estimate, so a paper can ask for either year and the two figures are close enough to be worth separating

  3. The 55.6 per cent figure in this area is the debt-to-GDP ratio, which is a stock and not a yearly flow

Concept
Fiscal deficit in the Budget
Typical time
50 seconds
Written from
pib.gov.in

Question 5

EasyOriginal question

By how much did India's real GDP grow in April to June 2026, the first quarter of 2026-27, according to the National Statistics Office?

  1. A7.8%
  2. B8.2%
  3. C10.3%
  4. D11.9%

Correct answer: A

Explanation

  1. Real GDP grew 7.8% in Q1 of 2026-27, against 6.9% in Q1 of 2025-26.

  2. 8.2% is real GVA, not GDP. 10.3% is nominal GDP, before prices are stripped out. 11.9% is the growth of gross fixed capital formation, the investment figure.

Worth noting

One press note carries all four numbers. The question turns on two words, real and GDP.

Concept
Q1 2026-27 real GDP growth
Typical time
40 seconds
Written from
mospi.gov.in

Question 6

MediumOriginal question

The GDP estimates for the first quarter of 2026-27 belong to the new national accounts series. What is its base year?

  1. A2011-12
  2. B2017-18
  3. C2020-21
  4. D2022-23

Correct answer: D

Explanation

  1. The National Statistics Office released the new series of annual and quarterly GDP estimates, with base year 2022-23, on 27 February 2026.

  2. The base year is the year whose prices constant-price figures are measured in. Real growth rates are worked out in those prices.

Concept
The base year of the new GDP series
Typical time
35 seconds
Written from
mospi.gov.in

Question 7

MediumOriginal question

According to the Reserve Bank's survey for 2025-26, which destination took the largest share of India's software services exports, and how large was that share?

  1. AEurope, with 54.1 per cent
  2. BThe United Kingdom, with 31.8 per cent
  3. CThe United States, with 54.1 per cent
  4. DThe United States, with 91.7 per cent

Correct answer: C

Explanation

  1. The United States stayed the main destination, with 54.1 per cent, followed by European countries with 31.8 per cent.

  2. 91.7 per cent is something else: the share delivered off-site, that is, from India, rather than at the client's location.

  3. Software services exports rose 8.2 per cent in 2025-26, to US$ 221.4 billion.

Concept
Where India's software exports go
Typical time
45 seconds
Written from
rbi.org.in

Question 8

EasyOriginal question

By how much did real GDP grow in July–September 2025, according to the estimate released in November 2025?

  1. A5.6 per cent
  2. B7.8 per cent
  3. C8.2 per cent
  4. D8.7 per cent

Correct answer: C

Explanation

  1. Real GDP growth in Q2 of 2025-26 was estimated at 8.2 per cent.

  2. 8.7 per cent is nominal growth, and 5.6 per cent the real growth of the same quarter a year before.

Concept
Q2 2025-26 GDP growth
Typical time
40 seconds
Written from
pib.gov.in

Question 9

MediumOriginal question

In the July–September 2025 GDP estimate, which sector grew fastest?

  1. ASecondary, at 8.1 per cent
  2. BTertiary, at 9.2 per cent
  3. CPrimary, at 9.1 per cent
  4. DConstruction, at 9.2 per cent

Correct answer: B

Explanation

  1. The tertiary sector grew 9.2 per cent, ahead of the secondary sector's 8.1 per cent.

  2. 9.1 per cent was manufacturing and 7.2 per cent construction, both within the secondary sector.

Concept
Sectoral growth, Q2 2025-26
Typical time
50 seconds
Written from
pib.gov.in

Question 10

HardOriginal question

The quarterly GDP estimates of November 2025 were computed at the prices of which base year?

  1. A2022-23
  2. B2004-05
  3. C2017-18
  4. D2011-12

Correct answer: D

Explanation

  1. The November 2025 press note gives constant prices as 2011-12 prices.

  2. A new series with base year 2022-23 came later, which is why quarters from 2026 are quoted on a different base.

Worth noting

Growth figures from before and after a base-year change are not on the same footing. Always check which series a number belongs to.

Concept
GDP base year in 2025
Typical time
65 seconds
Written from
pib.gov.in

Question 11

MediumOriginal question

What was India's real GDP growth for April–September 2025, the first half of 2025-26?

  1. A6.1 per cent
  2. B7.4 per cent
  3. C8.0 per cent
  4. D8.2 per cent

Correct answer: C

Explanation

  1. First-half growth was 8.0 per cent, against 6.1 per cent in the first half of 2024-25.

  2. 8.2 per cent is the second quarter alone.

Concept
H1 2025-26 GDP growth
Typical time
50 seconds
Written from
pib.gov.in

Question 12

EasyOriginal question

What did the Monetary Policy Committee do to the repo rate in December 2025?

  1. AHeld it at 5.50 per cent
  2. BCut it by 25 basis points to 5.25 per cent
  3. CCut it by 50 basis points to 5.00 per cent
  4. DRaised it to 5.75 per cent

Correct answer: B

Explanation

  1. The MPC cut the repo rate from 5.50 to 5.25 per cent, a 25 basis point cut.

  2. 5.00 per cent is where the standing deposit facility rate moved, not the repo rate.

Concept
Repo rate, December 2025
Typical time
40 seconds
Written from
rbi.org.in

Question 13

MediumOriginal question

How did the members of the Monetary Policy Committee vote on the December 2025 repo-rate decision?

  1. A4 to 2
  2. B5 to 1
  3. C3 to 3, with the Governor's casting vote
  4. DUnanimously, all six members

Correct answer: D

Explanation

  1. The resolution records that the MPC voted unanimously to reduce the repo rate.

  2. The committee has six members; the Governor has a casting vote only in a tie.

Concept
MPC vote, December 2025
Typical time
50 seconds
Written from
rbi.org.in

Question 14

MediumOriginal question

In December 2025 the Reserve Bank projected CPI inflation for 2025-26 at what level?

  1. A0.6 per cent
  2. B2.0 per cent
  3. C2.6 per cent
  4. D4.0 per cent

Correct answer: B

Explanation

  1. The projection was cut to 2.0 per cent, from 2.6 per cent in October.

  2. 0.6 per cent was the projection for October–December 2025 alone, and 4 per cent is the target, not a forecast.

Concept
RBI inflation projection, December 2025
Typical time
50 seconds
Written from
rbi.org.in

Question 15

HardOriginal question

Between October and December 2025, how did the Reserve Bank's GDP growth projection for 2025-26 move?

  1. AFrom 6.8 per cent up to 7.3 per cent
  2. BFrom 7.3 per cent down to 6.8 per cent
  3. CFrom 6.5 per cent up to 6.8 per cent
  4. DIt stayed at 7.0 per cent

Correct answer: A

Explanation

  1. October 2025 put growth at 6.8 per cent; December raised it to 7.3 per cent after a strong July–September quarter.

  2. 6.5 to 6.8 per cent was the earlier revision, made in October.

Worth noting

Rates were cut while the growth forecast went up. Low inflation, not weak growth, made room for the cut.

Concept
RBI growth projections, 2025-26
Typical time
65 seconds
Written from
rbi.org.in

Question 16

EasyOriginal question

What real GDP growth for 2025-26 did the Economic Survey 2025-26 report?

  1. A6.8 per cent
  2. B7.0 per cent
  3. C7.4 per cent
  4. D8.2 per cent

Correct answer: C

Explanation

  1. The Survey, following the first advance estimates, put 2025-26 growth at 7.4 per cent.

  2. About 7 per cent is its estimate of potential growth, and 8.2 per cent was a single quarter.

Concept
GDP growth in the Economic Survey 2025-26
Typical time
40 seconds
Written from
pib.gov.in

Question 17

MediumOriginal question

What growth range did the Economic Survey 2025-26 project for 2026-27?

  1. A6.3 to 6.8 per cent
  2. B7.4 to 7.8 per cent
  3. C6.8 to 7.2 per cent
  4. D6.0 to 6.5 per cent

Correct answer: C

Explanation

  1. The Survey projected real GDP growth of 6.8 to 7.2 per cent for 2026-27.

  2. 6.3 to 6.8 per cent was the previous year's Survey's projection for 2025-26.

Concept
Economic Survey projection for 2026-27
Typical time
50 seconds
Written from
pib.gov.in

Question 18

MediumOriginal question

According to the Economic Survey 2025-26, what did India's foreign exchange reserves stand at on 16 January 2026?

  1. AUSD 701.4 billion
  2. BUSD 387.6 billion
  3. CUSD 135.4 billion
  4. DUSD 550.0 billion

Correct answer: A

Explanation

  1. Reserves were USD 701.4 billion, covering 11 months of imports.

  2. USD 387.6 billion is services exports and USD 135.4 billion remittances.

Concept
Forex reserves, January 2026
Typical time
50 seconds
Written from
pib.gov.in

Question 19

HardOriginal question

To what level did banks' gross non-performing assets fall by September 2025, according to the Economic Survey 2025-26?

  1. A1.7 per cent, a record low
  2. B4.0 per cent, the RBI's comfort level
  3. C9.2 per cent, down from 11 per cent
  4. D2.2 per cent, a multi-decade low

Correct answer: D

Explanation

  1. Gross NPAs reached a multi-decade low of 2.2 per cent in September 2025.

  2. 1.7 per cent is average inflation for April–December 2025, and 9.2 per cent the Centre's revenue receipts as a share of GDP.

Concept
Bank asset quality, 2025
Typical time
65 seconds
Written from
pib.gov.in

Question 20

MediumOriginal question

The Economic Survey 2025-26 noted that India remained the world's largest recipient of what?

  1. AForeign direct investment
  2. BRemittances
  3. CDevelopment aid
  4. DCrude oil imports from Russia

Correct answer: B

Explanation

  1. Remittance inflows reached USD 135.4 billion in 2024-25, the largest in the world.

  2. Remittances are money sent home by Indians working abroad.

Concept
India and remittances
Typical time
50 seconds
Written from
pib.gov.in

Question 21

EasyOriginal question

How much public capital expenditure does the Union Budget 2026-27 provide for?

  1. A₹11.1 lakh crore
  2. B₹12.2 lakh crore
  3. C₹28.7 lakh crore
  4. D₹53.5 lakh crore

Correct answer: B

Explanation

  1. Public capital expenditure is raised to ₹12.2 lakh crore in 2026-27.

  2. ₹53.5 lakh crore is total expenditure and ₹28.7 lakh crore the Centre's net tax receipts.

Concept
Capital expenditure in Budget 2026-27
Typical time
40 seconds
Written from
pib.gov.in

Question 22

MediumOriginal question

What debt-to-GDP ratio does the Union Budget 2026-27 estimate for 2026-27?

  1. A50.0 per cent
  2. B55.6 per cent
  3. C56.1 per cent
  4. D60.0 per cent

Correct answer: B

Explanation

  1. Debt is estimated at 55.6 per cent of GDP in 2026-27, down from 56.1 per cent in the revised estimate for 2025-26.

  2. From 2026-27 the debt ratio, not the deficit alone, is the main fiscal anchor.

Concept
Debt-to-GDP in Budget 2026-27
Typical time
50 seconds
Written from
pib.gov.in

Question 23

MediumOriginal question

According to the Union Budget 2026-27, what was the fiscal deficit for 2025-26 in the revised estimate?

  1. A4.8 per cent of GDP, above budget
  2. B4.3 per cent of GDP, below budget
  3. C4.4 per cent of GDP, the same as budgeted
  4. D5.1 per cent of GDP

Correct answer: C

Explanation

  1. The revised estimate for 2025-26 kept the deficit at the budgeted 4.4 per cent of GDP.

  2. 4.3 per cent is the estimate for the new year, 2026-27.

Worth noting

A budget gives three years at once: last year's actuals, this year's revised estimate and next year's budget estimate. Check which one the question means.

Concept
Fiscal deficit, RE 2025-26
Typical time
50 seconds
Written from
pib.gov.in

Question 24

MediumOriginal question

The new dedicated freight corridor announced in the Union Budget 2026-27 will connect which two places?

  1. ALudhiana and Dankuni
  2. BDankuni and Surat
  3. CDadri and Jawaharlal Nehru Port
  4. DKharagpur and Vijayawada

Correct answer: B

Explanation

  1. The new corridor runs from Dankuni in the east to Surat in the west.

  2. Ludhiana–Dankuni is the existing Eastern corridor and Dadri–JNPT the existing Western one.

Concept
Freight corridor in Budget 2026-27
Typical time
50 seconds
Written from
pib.gov.in

Question 25

HardOriginal question

What was new about where the Union Budget 2026-27 was prepared?

  1. AIt was the first budget prepared in Kartavya Bhawan
  2. BIt was the first budget prepared in the new Parliament building
  3. CIt was the first budget prepared outside Delhi
  4. DIt was the first budget prepared in North Block

Correct answer: A

Explanation

  1. The highlights call it the first budget prepared in Kartavya Bhawan, where the Finance Ministry moved from North Block.

  2. It was built around three kartavyas: growth, aspirations and inclusion.

Concept
Budget 2026-27 and Kartavya Bhawan
Typical time
65 seconds
Written from
pib.gov.in

Question 26

EasyOriginal question

What did the Monetary Policy Committee decide at its meeting of 4–6 February 2026?

  1. ACut the repo rate to 5.00 per cent
  2. BRaised the repo rate to 5.50 per cent
  3. CKept the repo rate at 5.25 per cent
  4. DChanged the stance to accommodative

Correct answer: C

Explanation

  1. The MPC unanimously held the repo rate at 5.25 per cent and kept the stance neutral.

  2. 5.00 per cent is the SDF rate and 5.50 per cent the MSF rate, both unchanged.

Concept
Repo rate, February 2026
Typical time
40 seconds
Written from
rbi.org.in

Question 27

MediumOriginal question

In February 2026, at what rate did the marginal standing facility (MSF) stand?

  1. A5.00 per cent
  2. B5.25 per cent
  3. C5.50 per cent
  4. D6.00 per cent

Correct answer: C

Explanation

  1. The MSF rate and the Bank Rate were at 5.50 per cent, 25 basis points above the repo rate.

  2. The SDF sits 25 basis points below the repo rate, at 5.00 per cent.

Worth noting

The corridor is symmetric: SDF = repo − 0.25, MSF = repo + 0.25. Know the repo rate and you know all three.

Concept
The policy corridor
Typical time
50 seconds
Written from
rbi.org.in

Question 28

EasyOriginal question

The new GDP series released in February 2026 uses which base year?

  1. A2011-12
  2. B2024-25
  3. C2020-21
  4. D2022-23

Correct answer: D

Explanation

  1. The new series has base year 2022-23 and replaces the 2011-12 series.

  2. 2020-21 was a COVID year, which is why a later normal year was chosen.

Concept
New GDP base year
Typical time
40 seconds
Written from
pib.gov.in

Question 29

MediumOriginal question

On the new GDP series, what real growth was estimated for 2025-26?

  1. A7.1 per cent
  2. B7.4 per cent
  3. C7.6 per cent
  4. D8.6 per cent

Correct answer: C

Explanation

  1. The second advance estimate on the new series put 2025-26 growth at 7.6 per cent.

  2. 7.4 per cent was the earlier estimate on the old series; 8.6 per cent is nominal growth.

Concept
GDP growth 2025-26 on the new series
Typical time
50 seconds
Written from
pib.gov.in

Question 30

HardOriginal question

In the 2026 revision of base years, what is the new base year of the Consumer Price Index?

  1. A2022-23
  2. B2012
  3. C2024
  4. D2011-12

Correct answer: C

Explanation

  1. The CPI moves to base year 2024, while GDP and the IIP move to 2022-23.

  2. The CPI it replaced had base year 2012.

Concept
New CPI base year
Typical time
65 seconds
Written from
pib.gov.in

Question 31

MediumOriginal question

The new Consumer Price Index released in February 2026 has its weights based on which survey?

  1. AThe Periodic Labour Force Survey 2023-24
  2. BThe Household Consumption Expenditure Survey 2023-24
  3. CCensus 2011
  4. DThe National Family Health Survey-5

Correct answer: B

Explanation

  1. The basket and weights come from the Household Consumption Expenditure Survey 2023-24.

  2. What households actually buy decides what goes into a price index and how much it counts.

Concept
Basis of CPI 2024
Typical time
50 seconds
Written from
pib.gov.in

Question 32

HardOriginal question

How many divisions does the CPI on base 2024 group its items into?

  1. A6
  2. B8
  3. C12
  4. D24

Correct answer: C

Explanation

  1. The new series uses 12 divisions under COICOP 2018, in place of the old series' 6 groups.

  2. COICOP is the UN classification of individual consumption by purpose.

Concept
Structure of CPI 2024
Typical time
65 seconds
Written from
pib.gov.in

Question 33

EasyOriginal question

What was all-India retail inflation in January 2026, in the first release of the new CPI series?

  1. A1.70 per cent
  2. B2.75 per cent
  3. C3.21 per cent
  4. D4.00 per cent

Correct answer: B

Explanation

  1. Year-on-year CPI inflation for January 2026 on base 2024 was 2.75 per cent (provisional).

  2. 4 per cent is the inflation target, not a reading.

Concept
Inflation, January 2026
Typical time
40 seconds
Written from
pib.gov.in

Question 34

MediumOriginal question

In April 2026, what CPI inflation did the Reserve Bank project for 2026-27?

  1. A2.0 per cent
  2. B3.2 per cent
  3. C4.6 per cent
  4. D6.9 per cent

Correct answer: C

Explanation

  1. The projection for 2026-27 was 4.6 per cent.

  2. 6.9 per cent is the growth projection, and 3.2 per cent the February 2026 reading.

Concept
RBI inflation projection for 2026-27
Typical time
50 seconds
Written from
rbi.org.in

Question 35

MediumOriginal question

What real GDP growth did the Reserve Bank project for 2026-27 in April 2026?

  1. A6.2 per cent
  2. B6.9 per cent
  3. C7.3 per cent
  4. D7.6 per cent

Correct answer: B

Explanation

  1. Growth for 2026-27 was projected at 6.9 per cent.

  2. 7.6 per cent is the new-series estimate for 2025-26, the year just ended.

Concept
RBI growth projection for 2026-27
Typical time
50 seconds
Written from
rbi.org.in

Question 36

EasyOriginal question

Which meeting of the Monetary Policy Committee, held in April 2026, opened 2026-27?

  1. AThe 57th
  2. BThe 59th
  3. CThe first of a newly formed committee
  4. DThe 60th

Correct answer: D

Explanation

  1. The April 2026 meeting was the MPC's 60th; it kept the repo rate at 5.25 per cent.

  2. The 59th was in February 2026 and the 57th in October 2025.

Concept
MPC meetings in 2026
Typical time
40 seconds
Written from
rbi.org.in

Question 37

HardOriginal question

Which risks did the Reserve Bank name in April 2026 as pushing inflation up in 2026-27?

  1. AEnergy prices from the West Asia conflict, and possible El Niño
  2. BA fall in the rupee after the India–EU FTA
  3. CA record rabi harvest
  4. DHigher GST rates

Correct answer: A

Explanation

  1. The RBI cited persistently high energy prices due to the West Asia conflict and possible El Niño conditions as upside risks.

  2. A strong rabi crop was named as a comfort, not a risk.

Concept
Inflation risks, 2026-27
Typical time
65 seconds
Written from
rbi.org.in

Question 38

MediumOriginal question

How much additional credit does ECLGS 5.0 aim to make possible?

  1. A₹3 lakh crore
  2. B₹5,000 crore
  3. C₹100 crore
  4. D₹2.55 lakh crore

Correct answer: D

Explanation

  1. The scheme targets ₹2.55 lakh crore of additional credit, ₹5,000 crore of it for airlines.

  2. ₹100 crore is the cap per ordinary borrower, and ₹3 lakh crore was the first ECLGS of 2020.

Concept
Size of ECLGS 5.0
Typical time
50 seconds
Written from
pib.gov.in

Question 39

MediumOriginal question

Under ECLGS 5.0, what share of an MSME's additional credit is guaranteed?

  1. A20 per cent
  2. B75 per cent
  3. C90 per cent
  4. D100 per cent

Correct answer: D

Explanation

  1. MSMEs get a 100 per cent guarantee; non-MSMEs and airlines get 90 per cent.

  2. 20 per cent is the limit on extra credit as a share of peak working capital.

Concept
Guarantee under ECLGS 5.0
Typical time
50 seconds
Written from
pib.gov.in

Question 40

HardOriginal question

Which body provides the guarantees under ECLGS 5.0?

  1. ANational Credit Guarantee Trustee Company Limited
  2. BThe Reserve Bank of India
  3. CSIDBI
  4. DThe Deposit Insurance and Credit Guarantee Corporation

Correct answer: A

Explanation

  1. NCGTC gives the guarantees to member lending institutions.

  2. DICGC insures bank deposits, a different job.

Concept
Guarantor under ECLGS
Typical time
65 seconds
Written from
pib.gov.in

Question 41

EasyOriginal question

What real GDP growth for 2025-26 did the provisional estimates of June 2026 show?

  1. A7.4 per cent
  2. B7.6 per cent
  3. C7.7 per cent
  4. D8.9 per cent

Correct answer: C

Explanation

  1. Provisional estimates put 2025-26 growth at 7.7 per cent.

  2. 7.6 per cent was February's second advance estimate, and 8.9 per cent nominal growth.

Concept
GDP growth 2025-26, provisional
Typical time
40 seconds
Written from
pib.gov.in

Question 42

MediumOriginal question

By how much did real GDP grow in January–March 2026?

  1. A6.6 per cent
  2. B7.7 per cent
  3. C7.8 per cent
  4. D8.2 per cent

Correct answer: C

Explanation

  1. Fourth-quarter growth was 7.8 per cent.

  2. 7.7 per cent is the full year; 8.2 per cent was July–September 2025 on the old series.

Concept
GDP growth in Q4 2025-26
Typical time
50 seconds
Written from
pib.gov.in

Question 43

HardOriginal question

Why did the estimate of 2025-26 growth move from 7.6 per cent in February to 7.7 per cent in June 2026?

  1. AThe base year was changed again
  2. BInflation was higher than expected
  3. CData for the fourth quarter had come in
  4. DThe Budget raised capital expenditure

Correct answer: C

Explanation

  1. The February estimate used data only up to the third quarter; June added the January–March quarter.

  2. Both estimates are on the same 2022-23 base.

Worth noting

Advance estimates come before the year's data is complete; provisional estimates follow once all four quarters are in.

Concept
Revisions of GDP estimates
Typical time
65 seconds
Written from
pib.gov.in

Question 44

MediumOriginal question

In June 2026, to what did the Reserve Bank raise its CPI inflation forecast for 2026-27?

  1. A3.5 per cent
  2. B4.6 per cent
  3. C5.1 per cent
  4. D6.6 per cent

Correct answer: C

Explanation

  1. The forecast went up to 5.1 per cent from April's 4.6 per cent.

  2. 6.6 per cent is the growth forecast, and 3.5 per cent April's actual inflation.

Concept
RBI inflation forecast, June 2026
Typical time
50 seconds
Written from
rbi.org.in

Question 45

HardOriginal question

Between April and June 2026, how did the Reserve Bank's forecasts for 2026-27 change?

  1. AGrowth up from 6.6 to 6.9 per cent; inflation down from 5.1 to 4.6 per cent
  2. BGrowth down from 6.9 to 6.6 per cent; inflation up from 4.6 to 5.1 per cent
  3. CBoth unchanged
  4. DGrowth unchanged at 6.9 per cent; inflation up to 5.1 per cent

Correct answer: B

Explanation

  1. June cut growth to 6.6 per cent and raised inflation to 5.1 per cent, from April's 6.9 and 4.6.

  2. The repo rate stayed at 5.25 per cent at both meetings.

Concept
RBI forecasts, April to June 2026
Typical time
65 seconds
Written from
rbi.org.in

Question 46

EasyOriginal question

Where did the Monetary Policy Committee leave the repo rate in June 2026?

  1. A5.00 per cent
  2. B5.25 per cent
  3. C5.50 per cent
  4. D5.75 per cent

Correct answer: B

Explanation

  1. The 61st meeting kept the repo rate at 5.25 per cent.

  2. It had been at that level since the cut of December 2025.

Concept
Repo rate, June 2026
Typical time
40 seconds
Written from
rbi.org.in

Question 47

MediumOriginal question

After the March 2026 changes, up to what level of non-controlling beneficial ownership from a land-bordering country can an investment come in under the automatic route?

  1. A5 per cent
  2. B10 per cent
  3. C26 per cent
  4. D49 per cent

Correct answer: B

Explanation

  1. Non-controlling beneficial ownership of up to 10 per cent is now allowed under the automatic route.

  2. Above that, the government route of Press Note 3 still applies.

Concept
FDI from land-border countries: threshold
Typical time
50 seconds
Written from
pib.gov.in

Question 48

HardOriginal question

The rule that every investment from a country sharing a land border with India needs government approval was introduced by

  1. AThe FEMA Act of 1999
  2. BThe Union Budget of 2024
  3. CPress Note 1 of 2016
  4. DPress Note 3 of 2020

Correct answer: D

Explanation

  1. Press Note 3, issued in April 2020, put such investments on the government route.

  2. It aimed to stop opportunistic takeovers of Indian companies during the pandemic.

Concept
Press Note 3
Typical time
65 seconds
Written from
pib.gov.in

Question 49

MediumOriginal question

Within how many days will proposals from land-bordering countries in sectors such as electronic components and capital goods now be decided?

  1. A30 days
  2. B60 days
  3. C90 days
  4. D120 days

Correct answer: B

Explanation

  1. Such proposals are to be decided within 60 days.

  2. Majority shareholding and control must stay with resident Indians.

Concept
Expedited FDI clearance
Typical time
50 seconds
Written from
pib.gov.in

Question 50

EasyOriginal question

What Fair and Remunerative Price of sugarcane was fixed for the 2026-27 season?

  1. A₹182 a quintal
  2. B₹338.3 a quintal
  3. C₹355 a quintal
  4. D₹365 a quintal

Correct answer: D

Explanation

  1. The FRP for 2026-27 is ₹365 a quintal at 10.25 per cent recovery.

  2. ₹338.3 applies below 9.5 per cent recovery, and ₹182 is the cost of production.

Concept
Sugarcane FRP 2026-27
Typical time
40 seconds
Written from
pib.gov.in

Question 51

MediumOriginal question

On whose recommendation is the Fair and Remunerative Price of sugarcane fixed?

  1. AThe Food Corporation of India
  2. BThe Commission for Agricultural Costs and Prices
  3. CNITI Aayog
  4. DThe Reserve Bank of India

Correct answer: B

Explanation

  1. The CACP recommends the FRP, after which the Centre consults the states.

  2. The same commission recommends MSPs for other crops.

Concept
Who recommends FRP
Typical time
50 seconds
Written from
pib.gov.in

Question 52

HardOriginal question

The FRP of ₹365 a quintal for 2026-27 is fixed for what basic recovery rate?

  1. A9.5 per cent
  2. B10.0 per cent
  3. C10.25 per cent
  4. D11.25 per cent

Correct answer: C

Explanation

  1. The basic recovery rate is 10.25 per cent, with ₹3.56 added for each 0.1 point above it.

  2. Below 9.5 per cent there is no further deduction; farmers get ₹338.3.

Concept
FRP recovery rate
Typical time
65 seconds
Written from
pib.gov.in

Question 53

EasyOriginal question

What is the MSP of common paddy for the 2026-27 kharif marketing season?

  1. A₹2,300 a quintal
  2. B₹2,369 a quintal
  3. C₹2,441 a quintal
  4. D₹2,461 a quintal

Correct answer: C

Explanation

  1. Common paddy's MSP rose by ₹72 to ₹2,441.

  2. ₹2,369 was the 2025-26 MSP, and ₹2,461 is Grade A paddy.

Concept
Paddy MSP 2026-27
Typical time
40 seconds
Written from
pib.gov.in

Question 54

MediumOriginal question

Which kharif crop got the largest absolute MSP increase for 2026-27?

  1. ACotton
  2. BSunflower seed
  3. CPaddy
  4. DMoong

Correct answer: B

Explanation

  1. Sunflower seed rose by ₹622 a quintal, followed by cotton at ₹557.

  2. Moong rose by only ₹12.

Concept
Largest MSP increase
Typical time
50 seconds
Written from
pib.gov.in

Question 55

MediumOriginal question

For how many kharif crops were MSPs raised for the 2026-27 marketing season?

  1. A6
  2. B10
  3. C14
  4. D22

Correct answer: C

Explanation

  1. MSPs were raised for 14 kharif crops.

  2. MSPs are announced for 22 crops a year in all, kharif and rabi together.

Concept
Kharif crops with MSP
Typical time
50 seconds
Written from
pib.gov.in

Question 56

MediumOriginal question

In June 2026 the Cabinet set up a price stabilisation fund of up to ₹10,000 crore for which fuel?

  1. ADiesel
  2. BLPG
  3. CAviation turbine fuel
  4. DCNG

Correct answer: C

Explanation

  1. The fund keeps ATF prices stable for scheduled Indian airlines.

  2. It was prompted by fuel price volatility from the West Asia crisis.

Concept
ATF price stabilisation
Typical time
50 seconds
Written from
pib.gov.in

Question 57

HardOriginal question

How is the ATF price stabilisation support of June 2026 given to oil marketing companies?

  1. AAs a grant that is never repaid
  2. BAs a cut in GST on ATF
  3. CAs a loan from the Reserve Bank
  4. DAs an interest-free advance, to be recovered when prices ease

Correct answer: D

Explanation

  1. It is an interest-free advance through the Petroleum Ministry's Demands for Grants.

  2. When prices moderate, the money is recovered and returned to the Consolidated Fund of India.

Concept
How the ATF fund works
Typical time
65 seconds
Written from
pib.gov.in

Question 58

MediumOriginal question

What is the maximum size of the ATF price stabilisation support approved in June 2026?

  1. A₹1,000 crore
  2. B₹5,000 crore
  3. C₹10,000 crore
  4. D₹25,000 crore

Correct answer: C

Explanation

  1. The one-time support is capped at ₹10,000 crore.

  2. It covers both domestic and international flights of Indian carriers.

Concept
ATF fund size
Typical time
50 seconds
Written from
pib.gov.in

Question 59

MediumOriginal question

NIPU-2026, approved in July 2026, is an investment policy for which product?

  1. ASteel
  2. BUrea
  3. CNatural gas
  4. DPharmaceuticals

Correct answer: B

Explanation

  1. NIPU is the National Investment Policy for Urea-2026.

  2. It encourages new gas-based urea plants.

Concept
NIPU-2026
Typical time
50 seconds
Written from
pib.gov.in

Question 60

HardOriginal question

What return-on-equity band does NIPU-2026 introduce for new urea plants?

  1. A8 to 10 per cent
  2. B15 to 20 per cent
  3. C12 to 16 per cent
  4. D20 to 25 per cent

Correct answer: C

Explanation

  1. The policy sets a floor of 12 and a ceiling of 16 per cent.

  2. It replaces the 2012 policy, under which six new urea units came up.

Concept
NIPU-2026 return band
Typical time
65 seconds
Written from
pib.gov.in

Question 61

MediumOriginal question

To which rating did the Japan Credit Rating Agency upgrade India in September 2026?

  1. AA-
  2. BBBB+
  3. CBBB-
  4. DAA

Correct answer: A

Explanation

  1. JCR moved India up one notch, from BBB+ to A-, with a Stable outlook.

  2. BBB+ was the rating before the upgrade.

Concept
JCR rating upgrade
Typical time
50 seconds
Written from
pib.gov.in

Question 62

MediumOriginal question

From 2026 India's Consumer Price Index is compiled on which base year?

  1. A2012
  2. B2022-23
  3. C2024
  4. D2011-12

Correct answer: C

Explanation

  1. The August 2026 CPI was released on the base 2024=100.

  2. 2022-23 is the new base of the Wholesale Price Index; 2012 was the old CPI base.

Concept
CPI base year
Typical time
50 seconds
Written from
pib.gov.in

Question 63

EasyOriginal question

What is the RBI's CPI inflation target, the middle of its tolerance band?

  1. A2 per cent
  2. B4 per cent
  3. C5 per cent
  4. D6 per cent

Correct answer: B

Explanation

  1. The target is 4 per cent, with a band from 2 to 6 per cent.

  2. August 2026's 4.82 per cent was inside the band.

Concept
Inflation target
Typical time
40 seconds
Written from
pib.gov.in

Question 64

MediumOriginal question

In September 2026 the basic customs duty on which crude edible oil was cut to nil?

  1. ASunflower oil
  2. BPalm oil
  3. CSoybean oil
  4. DMustard oil

Correct answer: A

Explanation

  1. Crude sunflower oil went from 10 per cent to nil.

  2. Crude soybean and palm oil went from 10 per cent to 5 per cent.

Concept
Edible oil duty cut
Typical time
50 seconds
Written from
pib.gov.in

Question 65

MediumOriginal question

When the RBI withdrew ₹2000 notes from circulation in May 2023, what happened to their legal tender status?

  1. AThey continue as legal tender
  2. BThey ceased to be legal tender at once
  3. CThey ceased to be legal tender on 30 September 2023
  4. DThey became valid only for tax payments

Correct answer: A

Explanation

  1. The RBI withdrew the notes from circulation but kept them legal tender.

  2. This differs from 2016, when the old ₹500 and ₹1000 notes lost legal tender status.

Concept
₹2000 note withdrawal
Typical time
50 seconds
Written from
rbi.org.in

Question 66

EasyOriginal question

Who chairs the Sixteenth Finance Commission, constituted in December 2023?

  1. AArvind Panagariya
  2. BY. V. Reddy
  3. CRajiv Kumar
  4. DN. K. Singh

Correct answer: A

Explanation

  1. Dr Arvind Panagariya, former Vice-Chairman of NITI Aayog, chairs the Sixteenth Finance Commission.

  2. N. K. Singh chaired the Fifteenth and Y. V. Reddy the Fourteenth.

Concept
Sixteenth Finance Commission
Typical time
40 seconds
Written from
pib.gov.in

Question 67

MediumOriginal question

Under which Article of the Constitution is the Finance Commission constituted?

  1. AArticle 280
  2. BArticle 112
  3. CArticle 279A
  4. DArticle 324

Correct answer: A

Explanation

  1. Article 280 provides for a Finance Commission every five years.

  2. Article 112 is the annual budget; 279A the GST Council; 324 the Election Commission.

Concept
Finance Commission article
Typical time
50 seconds
Written from
pib.gov.in

Question 68

MediumOriginal question

India's UPI was linked with which country's PayNow system in February 2023?

  1. AThe UAE
  2. BFrance
  3. CSri Lanka
  4. DSingapore

Correct answer: D

Explanation

  1. UPI was linked with Singapore's PayNow on 21 February 2023.

  2. Singapore was the first country with a person-to-person UPI link.

Concept
UPI–PayNow
Typical time
50 seconds
Written from
pib.gov.in

Question 69

EasyOriginal question

Up to what annual income is no income tax payable under the new regime, as announced in the Budget 2025-26?

  1. A₹7 lakh
  2. B₹10 lakh
  3. C₹12 lakh
  4. D₹15 lakh

Correct answer: C

Explanation

  1. No income tax is payable up to ₹12 lakh (₹12.75 lakh for the salaried).

  2. The earlier rebate limit under the new regime was ₹7 lakh.

Concept
Budget 2025-26 income tax
Typical time
40 seconds
Written from
pib.gov.in

Question 70

MediumOriginal question

To what level did the RBI's MPC cut the repo rate in June 2025?

  1. A5.25 per cent
  2. B5.50 per cent
  3. C6.00 per cent
  4. D6.25 per cent

Correct answer: B

Explanation

  1. The MPC cut the repo rate by 50 basis points, from 6.00 to 5.50 per cent.

  2. It was cut again, to 5.25 per cent, in December 2025.

Concept
Repo rate, June 2025
Typical time
50 seconds
Written from
rbi.org.in

Question 71

MediumOriginal question

From which date did the two-slab GST rates recommended by the 56th GST Council take effect?

  1. A1 July 2025
  2. B3 September 2025
  3. C22 September 2025
  4. D1 October 2025

Correct answer: C

Explanation

  1. The new rates came into effect on 22 September 2025.

  2. The Council met on 3 September 2025.

Concept
GST 2025 start date
Typical time
50 seconds
Written from
pib.gov.in

Question 72

MediumOriginal question

After the 56th GST Council's reform, what special rate applies to sin and luxury goods?

  1. A18 per cent
  2. B28 per cent
  3. C35 per cent
  4. D40 per cent

Correct answer: D

Explanation

  1. The reform set 5 and 18 per cent as the main rates and 40 per cent for sin and luxury goods.

  2. 28 per cent was the highest slab before the reform.

Concept
GST special rate
Typical time
50 seconds
Written from
pib.gov.in

Question 73

MediumOriginal question

By the quick estimate, how much did the Index of Industrial Production grow in August 2026?

  1. A6.7 per cent
  2. B8.0 per cent
  3. C9.0 per cent
  4. D12.3 per cent

Correct answer: B

Explanation

  1. The IIP grew 8.0 per cent in August 2026, up from 6.7 per cent in July.

  2. 9.0 per cent was manufacturing's growth, and 12.3 per cent electricity's.

Concept
IIP August 2026
Typical time
50 seconds
Written from
pib.gov.in

Question 74

EasyOriginal question

Which body compiles India's Index of Industrial Production?

  1. AThe National Statistics Office
  2. BThe Reserve Bank of India
  3. CThe Labour Bureau
  4. DThe Office of the Economic Adviser

Correct answer: A

Explanation

  1. The IIP is compiled by the National Statistics Office of the Ministry of Statistics and Programme Implementation.

  2. The Office of the Economic Adviser compiles the Wholesale Price Index; the Labour Bureau compiles CPI for industrial workers.

Concept
Who compiles the IIP
Typical time
40 seconds
Written from
pib.gov.in

Question 75

MediumOriginal question

Which rabi crop got the largest increase in MSP, in rupees, for the 2027-28 marketing season?

  1. ASafflower
  2. BWheat
  3. CLentil (masur)
  4. DRapeseed and mustard

Correct answer: A

Explanation

  1. Safflower rose by ₹675 a quintal, the most of any rabi crop.

  2. Rapeseed and mustard rose by ₹413 and wheat by only ₹25.

Concept
Rabi MSP 2027-28
Typical time
50 seconds
Written from
pib.gov.in

Question 76

EasyOriginal question

Which body recommends the Minimum Support Prices of crops to the Government of India?

  1. ANABARD
  2. BAPEDA
  3. CFCI
  4. DCACP

Correct answer: D

Explanation

  1. The Commission for Agricultural Costs and Prices (CACP) recommends MSPs; the Cabinet Committee on Economic Affairs decides them.

  2. The FCI procures grain at the MSP; NABARD finances rural credit.

Concept
Who recommends MSP
Typical time
40 seconds
Written from
pib.gov.in

Question 77

MediumOriginal question

What was the theme of the fifth Kautilya Economic Conclave, held in October 2026?

  1. AResilience in an Age of Flux
  2. BNavigating a World on Fire
  3. CSeeking Prosperity in Turbulent Times
  4. DThe Indian Era

Correct answer: A

Explanation

  1. The 2026 theme was 'Resilience in an Age of Flux'.

  2. 'The Indian Era' was 2024's theme and 'Seeking Prosperity in Turbulent Times' 2025's.

Concept
Kautilya Economic Conclave 2026
Typical time
50 seconds
Written from
pib.gov.in

Question 78

EasyOriginal question

Kautilya, after whom the economic conclave is named, wrote which work?

  1. AIndica
  2. BPanchatantra
  3. CRajatarangini
  4. DArthashastra

Correct answer: D

Explanation

  1. Kautilya, or Chanakya, wrote the Arthashastra, a treatise on statecraft and economics.

  2. Kalhana wrote the Rajatarangini, and Megasthenes the Indica.

Concept
Kautilya's Arthashastra
Typical time
40 seconds
Written from
pib.gov.in

Question 79

MediumOriginal question

The 57th GST Council meeting, in October 2026, approved in principle an optional scheme for small consumer-facing businesses with turnover up to how much?

  1. A₹1.5 crore
  2. B₹2 crore
  3. C₹5 crore
  4. D₹10 crore

Correct answer: C

Explanation

  1. The Council approved in principle an optional scheme for such businesses with turnover up to ₹5 crore.

  2. The meeting's focus was process: registration, returns, refunds and adjudication.

Concept
57th GST Council: small businesses
Typical time
50 seconds
Written from
pib.gov.in

Question 80

MediumOriginal question

The 57th GST Council meeting recommended a simplified registration route for which group?

  1. ASmall e-commerce sellers
  2. BPetrol pump owners
  3. CExporters of goods
  4. DForeign airline operators

Correct answer: A

Explanation

  1. It recommended simplified GST registration for small sellers on e-commerce platforms.

  2. It also recommended steps to ease the export of services, not goods.

Concept
57th GST Council: e-commerce sellers
Typical time
50 seconds
Written from
pib.gov.in