Home / Current Affairs / Details

Economy Affairs

17 Aug 2026
Economy Affairs
India's macroeconomic outlook remains strong, driven by steady real GDP expansion, active fiscal consolidation through infrastructure Capex, and well-capitalized commercial banks with declining bad loans (GNPAs). Concurrently, retail inflation management via the RBI’s Flexible Inflation Targeting framework and robust foreign exchange reserves ensure external stability and price control.

Ultra-Short Bullet Summary (For Quick Card Feeds)

Monetary Policy & Inflation: RBI benchmarks the repo rate

Questions & Answers

Test your understanding of this current affair.

1
Which institution is responsible for regulating monetary policy and issuing currency in India?
Answer: Reserve Bank of India (RBI)
2
What is the primary objective of the Reserve Bank of India's repo rate adjustment?
Answer: To control inflation and manage liquidity in the economy
3
Which tax was subsumed into the unified Indirect Tax regime known as GST (Goods and Services Tax) in India?
Answer: Value Added Tax (VAT) and Central Excise Duty
4
What does 'Fiscal Deficit' signify in government budget accounts?
Answer: The excess of total government expenditure over total non-borrowed receipts
5
Which organization publishes the official 'Economic Survey' of India prior to the Union Budget?
Answer: Department of Economic Affairs, Ministry of Finance
6
What is the primary mandate of NITI Aayog in India's economic policy framework?
Answer: To foster cooperative federalism and strategic policy think-tank advisory
7
Which financial index measures the average change in prices paid by urban and rural consumers for goods and services in India?
Answer: Consumer Price Index (CPI)
8
What does FDI stand for in the context of international trade and national economy?
Answer: Foreign Direct Investment
9
Which institution regulates the securities market and protects investor interests in India?
Answer: Securities and Exchange Board of India (SEBI)
10
What is the primary focus of NABARD (National Bank for Agriculture and Rural Development)?
Answer: Providing credit for agriculture, small-scale industries, and rural development
11
What does 'Inflation' generally mean in economic terms?
Answer: A general increase in prices and fall in the purchasing value of money over time
12
Which sector contributes the largest share to Kerala's Gross State Domestic Product (GSDP)?
Answer: Tertiary (Service) sector
13
What is the role of the Kudumbashree mission in Kerala's economy?
Answer: Poverty eradication, women empowerment, and micro-enterprise promotion
14
What does 'GDP' stand for in national macroeconomic accounts?
Answer: Gross Domestic Product
15
Which financial institution serves as the central clearing house and banker to banks in India?
Answer: Reserve Bank of India
16
What is the primary function of the Monetary Policy Committee (MPC) in India?
Answer: To determine the benchmark policy interest rate required to achieve inflation targets
17
What does 'Per Capita Income' measure in an economy?
Answer: The average income earned per person in a specified area or country
18
Which scheme guarantees 100 days of wage employment in rural areas of India?
Answer: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
19
What is the main purpose of the Public Distribution System (PDS) in India?
Answer: To distribute subsidized food grains and essential commodities to poor households
20
Which index is commonly used to measure the inequality of income distribution within a country?
Answer: Gini Coefficient
21
What does 'CRR' (Cash Reserve Ratio) stand for in commercial banking operations?
Answer: The minimum percentage of deposits that commercial banks must hold with the RBI
22
Which organization compiles and releases national income estimates in India?
Answer: National Statistical Office (NSO)
23
What is the primary function of the World Trade Organization (WTO) in global economics?
Answer: To regulate and facilitate international trade between nations
24
What does 'SLR' (Statutory Liquidity Ratio) require commercial banks to maintain?
Answer: A specified percentage of liquid assets like gold or approved securities before lending to customers
25
Which sector is traditionally referred to as the 'primary sector' of an economy?
Answer: Agriculture, forestry, fishing, and mining
26
What is the primary objective of Kerala's KIIFB (Kerala Infrastructure Investment Fund Board)?
Answer: Mobilizing off-budget financial resources for large-scale public infrastructure projects
27
What does 'BOP' (Balance of Payments) measure in international economics?
Answer: All economic transactions between residents of a country and the rest of the world
28
Which scheme was launched by the Government of India to provide universal banking access with zero-balance accounts?
Answer: Pradhan Mantri Jan Dhan Yojana (PMJDY)
29
What does 'Microfinance' primarily cater to in financial markets?
Answer: Providing financial services such as small loans and savings to low-income individuals or groups
30
Which international organization acts as a lender of last resort for countries facing severe balance of payments crises?
Answer: International Monetary Fund (IMF)
1 2 3 4
Current Affairs
All Current Affairs
Quick Info
30 Questions & Answers
Test Your Knowledge
Take the MCQ mock test based on this current affair.
Start Test