CLAT GurukulSamudraManthan

Topic 171 · Answers

RBI MPC holds repo at 5.25%

All 10 answers, each with its Book 1 RATNA fact. Try the questions first

  1. Question 1Answer A

    Consider: 1. The MPC held the repo rate at 5.25% on 8 April 2026. 2. Its stance was accommodative. Which is/are correct?

    • Correct answer: Only 1
    • Only 2
    • Both 1 and 2
    • Neither

    Core Trigger: On 8 April 2026 the MPC, at its 60th meeting, unanimously held the repo rate at 5.25% with a neutral stance.From Book 1 RATNA, topic 171, point 1

  2. Question 2Answer A

    What 2026-27 GDP growth did the RBI project?

    • Correct answer: 6.9%
    • 6.5%
    • 7.2%
    • 7.4%

    Policy Outlook: The RBI projected 2026-27 growth at 6.9% and CPI inflation at 4.6%.From Book 1 RATNA, topic 171, point 2

  3. Question 3Answer D

    Who chairs the Monetary Policy Committee?

    • The Union Finance Minister
    • The Chief Economic Adviser
    • The SEBI Chairman
    • Correct answer: The RBI Governor

    Current Head: Sanjay Malhotra, RBI Governor, chairs the MPC; Deputy Governor Poonam Gupta is a member.From Book 1 RATNA, topic 171, point 3

  4. Question 4Answer C

    In the April 2026 corridor, the MSF rate and Bank Rate stood at what?

    • 5.25%
    • 5.00%
    • Correct answer: 5.50%
    • 6.00%

    Rate Corridor: The SDF rate is 5.00%; the MSF rate and Bank Rate are 5.50%.From Book 1 RATNA, topic 171, point 4

  5. Question 5Answer D

    Besides 5 June, on which date did the MPC hold rates again?

    • 5 July 2026
    • 6 August 2026
    • 7 October 2026
    • Correct answer: 5 August 2026

    Later Holds: The MPC held again on 5 June and 5 August 2026.From Book 1 RATNA, topic 171, point 5

  6. Question 6Answer A

    Until which year does the 4% inflation target with a 2-6% band continue?

    • Correct answer: 2031
    • 2028
    • 2029
    • 2030

    Stakeholders: External members are Nagesh Kumar, Saugata Bhattacharya and Ram Singh; the 4% inflation target, 2-6% band, continues to 2031.From Book 1 RATNA, topic 171, point 6

  7. Question 7Answer B

    Where is the RBI's central office?

    • Kolkata
    • Correct answer: Mumbai
    • New Delhi
    • Chennai

    Headquarters: The Reserve Bank of India has its central office in Mumbai.From Book 1 RATNA, topic 171, point 8

  8. Question 8Answer C

    On which date was the first MPC constituted?

    • 1 April 2016
    • 20 February 2015
    • Correct answer: 29 September 2016
    • 5 December 2025

    Founded: The first MPC was constituted on 29 September 2016; repo reached 5.25% by a 25 basis point cut on 5 December 2025.From Book 1 RATNA, topic 171, point 9

  9. Question 9Answer A

    The Monetary Policy Framework Agreement of 20 February of which year adopted flexible inflation targeting?

    • Correct answer: 2015
    • 2013
    • 2016
    • 2018

    Landmark Agreement: The Monetary Policy Framework Agreement of 20 February 2015 formally adopted flexible inflation targeting.From Book 1 RATNA, topic 171, point 10

  10. Question 10Answer B

    Consider: 1. Section 45ZB creates a nine-member MPC. 2. The Governor has a casting vote. Which is/are correct?

    • Only 1
    • Correct answer: Only 2
    • Both 1 and 2
    • Neither

    Statute: Section 45ZB of the RBI Act, 1934 creates the six-member MPC; section 45ZA sets the target.From Book 1 RATNA, topic 171, point 11

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