MCQ Test: Indian Economy and Business: Key Developments from December 11-12, 2025

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What term did the Reserve Bank of India (RBI) Governor use to describe the economic period following the recent repo rate cut?

A) Period of Stagnation B) Goldilocks Period C) Economic Downturn D) Hyperinflationary Phase

Correct Answer: B) Goldilocks Period
Full Answer: Ans: b) Goldilocks Period

The report titled "Deepening the Corporate Bond Market in India," aimed at mobilizing long-term capital and reducing reliance on bank credit, was released by which organization?

A) Reserve Bank of India (RBI) B) Ministry of Finance C) NITI Aayog D) Securities and Exchange Board of India (SEBI)

Correct Answer: C) NITI Aayog
Full Answer: Ans: c) NITI Aayog

Which sector category is reported to be driving India's current investment boom, positioning the country as a hedge against the global AI investment surge?

A) Artificial Intelligence and Machine Learning B) Information Technology Services C) Old Economy Sectors D) Renewable Energy

Correct Answer: C) Old Economy Sectors
Full Answer: Ans: c) Old Economy Sectors

According to recent reports, what was a significant contributor to India's Current Account Deficit (CAD) in the second quarter of FY26?

A) Increased software exports B) Reduced crude oil prices C) Gold imports D) Foreign direct investment outflows

Correct Answer: C) Gold imports
Full Answer: Ans: c) Gold imports

What is a key initiative planned for states in Budget 2026 to enhance their capital expenditure?

A) Increased grants from international bodies B) Higher interest-free loans from the Centre C) Reduced allocation from GST collections D) Privatization of state-owned enterprises

Correct Answer: B) Higher interest-free loans from the Centre
Full Answer: Ans: b) Higher interest-free loans from the Centre

Which company was identified as the top wealth creator in the Indian stock market between 2020 and 2025?

A) Reliance Industries B) Tata Consultancy Services C) HDFC Bank D) Airtel

Correct Answer: D) Airtel
Full Answer: Ans: d) Airtel

As per recent market capitalization reports, which company holds the top position as India's most valuable company?

A) HDFC Bank B) Tata Consultancy Services (TCS) C) Reliance Industries D) Infosys

Correct Answer: C) Reliance Industries
Full Answer: Ans: c) Reliance Industries

What significant milestone did the Indian Mutual Fund (MF) industry's Assets Under Management (AUM) achieve recently?

A) It surpassed Rs 50 lakh crore. B) It surpassed Rs 80 lakh crore. C) It saw a decline in equity mutual fund inflows. D) It experienced a contraction in overall AUM.

Correct Answer: B) It surpassed Rs 80 lakh crore.
Full Answer: Ans: b) It surpassed Rs 80 lakh crore.

What was the stance of Union Commerce Minister Piyush Goyal regarding India's negotiation of a Free Trade Agreement (FTA) with the United States?

A) India is ready to make further concessions under time pressure. B) India insists on concluding the FTA within a strict deadline. C) India will not negotiate under time pressure and expects the US to sign if satisfied with the current offer. D) India plans to withdraw from FTA negotiations with the US.

Correct Answer: C) India will not negotiate under time pressure and expects the US to sign if satisfied with the current offer.
Full Answer: Ans: c) India will not negotiate under time pressure and expects the US to sign if satisfied with the current offer.

Which European country's Deputy Prime Minister recently expressed optimism for the conclusion of an India-EU Free Trade Agreement within the next six months?

A) France B) Germany C) Italy D) Spain

Correct Answer: C) Italy
Full Answer: Ans: c) Italy

Who highlighted the "great momentum" in India regarding the deployment of Artificial Intelligence and agentic AI applications during his recent AI Tour in the country?

A) Jeff Bezos B) Satya Nadella C) Sundar Pichai D) Elon Musk

Correct Answer: B) Satya Nadella
Full Answer: Ans: b) Satya Nadella

Which company announced plans to invest $7 billion to expand its data center infrastructure in Telangana?

A) Google Cloud B) Microsoft Azure C) Amazon Web Services (AWS) D) Oracle Cloud Infrastructure

Correct Answer: C) Amazon Web Services (AWS)
Full Answer: Ans: c) Amazon Web Services (AWS)

According to the World Inequality Report 2026, what percentage of the national income in India is captured by the top 10% earners?

A) 15% B) 30% C) 58% D) 75%

Correct Answer: C) 58%
Full Answer: Ans: c) 58%

As the Goods and Services Tax (GST) compensation cess is set to lapse, on which products has the government announced plans to introduce new levies?

A) Luxury cars and electronics B) Petroleum products and natural gas C) Tobacco and pan masala D) Soft drinks and packaged foods

Correct Answer: C) Tobacco and pan masala
Full Answer: Ans: c) Tobacco and pan masala

What is the primary purpose of the newly announced 'Bharat Taxi App' by the government?

A) To promote electric vehicles in ride-sharing. B) To provide a government-owned ride-sharing service. C) To regulate and limit surge pricing for ride-sharing services. D) To offer subsidies to taxi drivers.

Correct Answer: C) To regulate and limit surge pricing for ride-sharing services.
Full Answer: Ans: c) To regulate and limit surge pricing for ride-sharing services.

Indian Economy and Business: Key Developments from December 11-12, 2025