MCQ Test: Indian Economy Navigates Inflation Ease, Trade Expansion, and Growth Debates

1. What are the primary factors cited for the expected easing of India's retail inflation to an eight-year low?

A) Increased government spending and higher import duties B) High base effect, falling food prices, and GST reforms C) Rising global crude oil prices and reduced agricultural output D) Strong consumer demand and increased manufacturing costs

2. What is the prevailing outlook for India's monetary policy, as indicated by an MPC member and Goldman Sachs?

A) A period of aggressive fiscal tightening to control inflation. B) Potential for multiple rate cuts in FY26-FY27 and nearing the end of the tightening phase. C) Maintenance of current interest rates due to uncertain economic growth. D) An increase in policy rates to strengthen the Indian Rupee.

3. According to the government, what has been a significant consequence of the GST 2.0 reforms implemented on September 22?

A) A decrease in foreign direct investment (FDI) into manufacturing. B) A boost in consumption, particularly for electronics and consumer goods. C) An increase in the prices of essential daily-use items. D) A decline in overall tax revenue collection.

4. How are the GST 2.0 reforms anticipated to impact India's consumption in nominal terms for the financial year 2025-26?

A) A decrease of more than 5%. B) An increase of less than 5%. C) An increase of over 10%. D) No significant change is expected.

5. India is undertaking a review of its 2010 trade pact with which regional bloc to address outstanding issues and narrow its trade deficit?

A) European Union (EU) B) South Asian Association for Regional Cooperation (SAARC) C) Association of Southeast Asian Nations (ASEAN) D) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)

6. Which country is India in talks with to expand their Preferential Trade Agreement (PTA), aiming for a bilateral trade value of US$20 billion by 2030?

A) Russia B) Brazil C) South Africa D) Mexico

7. What is the expected outcome of the Indian Rupee's Real Effective Exchange Rate (REER) falling to its lowest level since October 2018?

A) A decrease in India's import volumes. B) Enhanced export competitiveness by making Indian goods cheaper globally. C) An increase in the cost of foreign direct investment into India. D) A rise in domestic inflation due to expensive imports.

8. Who among the following expressed concerns about India being 'stuck in a lower-middle income trap' and highlighted a decline in Gross Fixed Capital Formation (GFCF)?

A) Finance Minister Nirmala Sitharaman B) Former Finance Minister P. Chidambaram C) RBI Governor Shaktikanta Das D) NITI Aayog Vice Chairman Suman Bery

9. What trend is highlighted regarding India's Gross Fixed Capital Formation (GFCF) as a percentage of GDP between 2007-08 and 2024-25?

A) A significant increase, indicating robust investment. B) A marginal fluctuation with no clear trend. C) A significant decline, raising concerns about capital formation. D) It remained stable, showing consistent investment levels.

10. Which major international banking group is reportedly acquiring a majority stake in RBL Bank?

A) Standard Chartered Bank B) HSBC Holdings C) Emirates NBD D) Deutsche Bank

11. The moderation in India's retail inflation is significantly attributed to the rationalization of what key economic policy?

A) Income Tax rates B) Corporate Tax rates C) Goods and Services Tax (GST) rates D) Import tariffs on essential goods

12. The signaling of potential multiple rate cuts by an MPC member in FY26-FY27, coupled with low inflation, primarily aims to achieve which economic objective?

A) To curb excessive foreign investment. B) To support economic expansion and growth. C) To reduce government debt significantly. D) To stabilize the exchange rate against major currencies.

13. What specific impact of the GST 2.0 reforms on household expenses was mentioned by the government?

A) Increased cost of housing. B) Reduced prices for daily-use items. C) Higher taxes on luxury goods. D) Stagnant prices for essential services.

14. The growth of India's exports in 24 nations during April-September is presented as an indicator of what broader trade strategy?

A) Increased reliance on a few key trading partners. B) A focus on reducing overall export volumes. C) Successful market diversification efforts. D) A shift towards importing more goods.

15. The Indian stock market's special one-hour Muhurat trading session is scheduled to mark which traditional event?

A) The end of the financial year. B) The beginning of the new Samvat year. C) A national holiday. D) The quarterly earnings announcement.

ALL TN Comp Exams Prep

Indian Economy Navigates Inflation Ease, Trade Expansion, and Growth Debates

Your Score: 0 / 0

1. What are the primary factors cited for the expected easing of India's retail inflation to an eight-year low?

2. What is the prevailing outlook for India's monetary policy, as indicated by an MPC member and Goldman Sachs?

3. According to the government, what has been a significant consequence of the GST 2.0 reforms implemented on September 22?

4. How are the GST 2.0 reforms anticipated to impact India's consumption in nominal terms for the financial year 2025-26?

5. India is undertaking a review of its 2010 trade pact with which regional bloc to address outstanding issues and narrow its trade deficit?

6. Which country is India in talks with to expand their Preferential Trade Agreement (PTA), aiming for a bilateral trade value of US$20 billion by 2030?

7. What is the expected outcome of the Indian Rupee's Real Effective Exchange Rate (REER) falling to its lowest level since October 2018?

8. Who among the following expressed concerns about India being 'stuck in a lower-middle income trap' and highlighted a decline in Gross Fixed Capital Formation (GFCF)?

9. What trend is highlighted regarding India's Gross Fixed Capital Formation (GFCF) as a percentage of GDP between 2007-08 and 2024-25?

10. Which major international banking group is reportedly acquiring a majority stake in RBL Bank?

11. The moderation in India's retail inflation is significantly attributed to the rationalization of what key economic policy?

12. The signaling of potential multiple rate cuts by an MPC member in FY26-FY27, coupled with low inflation, primarily aims to achieve which economic objective?

13. What specific impact of the GST 2.0 reforms on household expenses was mentioned by the government?

14. The growth of India's exports in 24 nations during April-September is presented as an indicator of what broader trade strategy?

15. The Indian stock market's special one-hour Muhurat trading session is scheduled to mark which traditional event?

Indian Economy Navigates Inflation Ease, Trade Expansion, and Growth Debates

Your Score: 0 / 0

1. What are the primary factors cited for the expected easing of India's retail inflation to an eight-year low?

2. What is the prevailing outlook for India's monetary policy, as indicated by an MPC member and Goldman Sachs?

3. According to the government, what has been a significant consequence of the GST 2.0 reforms implemented on September 22?

4. How are the GST 2.0 reforms anticipated to impact India's consumption in nominal terms for the financial year 2025-26?

5. India is undertaking a review of its 2010 trade pact with which regional bloc to address outstanding issues and narrow its trade deficit?

6. Which country is India in talks with to expand their Preferential Trade Agreement (PTA), aiming for a bilateral trade value of US$20 billion by 2030?

7. What is the expected outcome of the Indian Rupee's Real Effective Exchange Rate (REER) falling to its lowest level since October 2018?

8. Who among the following expressed concerns about India being 'stuck in a lower-middle income trap' and highlighted a decline in Gross Fixed Capital Formation (GFCF)?

9. What trend is highlighted regarding India's Gross Fixed Capital Formation (GFCF) as a percentage of GDP between 2007-08 and 2024-25?

10. Which major international banking group is reportedly acquiring a majority stake in RBL Bank?

11. The moderation in India's retail inflation is significantly attributed to the rationalization of what key economic policy?

12. The signaling of potential multiple rate cuts by an MPC member in FY26-FY27, coupled with low inflation, primarily aims to achieve which economic objective?

13. What specific impact of the GST 2.0 reforms on household expenses was mentioned by the government?

14. The growth of India's exports in 24 nations during April-September is presented as an indicator of what broader trade strategy?

15. The Indian stock market's special one-hour Muhurat trading session is scheduled to mark which traditional event?

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