Economy MCQs with Answers
1. What is the primary function of the repo rate?
- Control fiscal deficit
- Control inflation and liquidity
- Increase exports
- Regulate stock markets
Answer: B) Control inflation and liquidity
2. Which index is primarily used to measure inflation in India?
- Index of Industrial Production (IIP)
- Wholesale Price Index (WPI)
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
Answer: C) Consumer Price Index (CPI)