Monetary Policy MCQ — 3 Practice Questions with Answers

Explanation

India imports ~85% of its crude oil. A weaker rupee directly inflates the import bill for crude oil importers and petroleum refiners, raising fuel prices and creating inflationary pressure. IT, pharma, and textile exporters actually benefit from a weaker rupee as their foreign currency earnings convert to more rupees.

Explanation

The RBI MPC voted 6-0 unanimously to hold repo rate at 6.25% in February 2026. Minutes were published February 20, 2026.

Explanation

FPIs withdrew approximately $17 billion from Indian equities in the weeks before December 2025, described as the largest FPI outflow in nearly two decades, which was a key driver of the rupee depreciating to its historic low of Rs 90/USD.