CLAT GurukulSamudraManthan

Topic 190 · Answers

RBI raises repo rate to 5.50%

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

  1. Question 1Answer C

    On 7 October 2026 the RBI raised the repo rate by 25 bps to what level?

    • 5.75%
    • 5.00%
    • Correct answer: 5.50%
    • 5.35%

    Core Trigger: On 7 October 2026 the RBI raised the repo rate by 25 bps, from 5.25% to 5.50%, after the 5-7 October MPC meeting.From Book 1 RATNA, topic 190, point 1

  2. Question 2Answer A

    The RBI's policy stance shifted from neutral to which stance?

    • Correct answer: Calibrated tightening
    • Accommodative
    • Withdrawal of accommodation
    • Easing bias

    Policy Stance: The stance shifted from neutral to calibrated tightening, and the Monetary Policy Committee voted unanimously.From Book 1 RATNA, topic 190, point 2

  3. Question 3Answer B

    Who chairs the Monetary Policy Committee?

    • Nirmala Sitharaman
    • Correct answer: Sanjay Malhotra
    • Shaktikanta Das
    • Michael Patra

    Current Head: Governor Sanjay Malhotra chairs the six-member Monetary Policy Committee.From Book 1 RATNA, topic 190, point 3

  4. Question 4Answer A

    After the hike, the MSF rate and Bank Rate stand at what level?

    • Correct answer: 5.75%
    • 5.50%
    • 6.00%
    • 5.25%

    Key Rates: The Standing Deposit Facility rate is 5.25%; the Marginal Standing Facility rate and Bank Rate are 5.75%.From Book 1 RATNA, topic 190, point 4

  5. Question 5Answer C

    The previous rate cut, to 5.25%, came in which month?

    • June 2025
    • October 2025
    • Correct answer: December 2025
    • February 2026

    Rate Cycle: This is the first hike in nearly three years; the previous cut, to 5.25%, came in December 2025.From Book 1 RATNA, topic 190, point 5

  6. Question 6Answer B

    The next MPC meeting is scheduled for which dates?

    • 5-7 December 2026
    • Correct answer: 2-4 December 2026
    • 3-5 November 2026
    • 9-11 February 2027

    Next Meeting: The next MPC meeting is scheduled for 2-4 December 2026.From Book 1 RATNA, topic 190, point 6

  7. Question 7Answer D

    The Reserve Bank of India is headquartered in which city?

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

    Headquarters: The Reserve Bank of India is headquartered in Mumbai.From Book 1 RATNA, topic 190, point 8

  8. Question 8Answer B

    On which date did the RBI begin operations?

    • 1 April 1934
    • Correct answer: 1 April 1935
    • 1 January 1949
    • 15 August 1947

    Founded: The RBI began operations on 1 April 1935 under the Reserve Bank of India Act, 1934.From Book 1 RATNA, topic 190, point 9

  9. Question 9Answer D

    The 2016 RBI Act amendment created the statutory MPC and adopted which framework?

    • Monetary targeting
    • Fixed exchange-rate peg
    • Multiple-indicator approach
    • Correct answer: Flexible inflation targeting

    Landmark: The 2016 amendment to the RBI Act created the statutory MPC and adopted flexible inflation targeting.From Book 1 RATNA, topic 190, point 10

  10. Question 10Answer A

    Consider: 1. Section 45ZB provides for a six-member MPC. 2. Section 45ZA lets the RBI notify the inflation target. Which is/are correct?

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

    Statute: Section 45ZB of the RBI Act, 1934 provides for the six-member MPC; section 45ZA lets the Centre notify the inflation target.From Book 1 RATNA, topic 190, point 11

Open these answers in the app (sign-in needed)