CSEET MCQs on current affairs - Indian Finance

Multiple choice questions  on recent Indian finance-current-affairs, useful for your CSEET preparation.

1. The Reserve Bank of India (RBI) minutes of October 2025 indicated room for what policy action?

A) Increase in repo rate

B) Maintenance of status-quo forever

C) Potential interest-rate cut

D) Immediate quantitative tightening

Answer: C (RBI minutes show room for rate cuts as inflation outlook softens)

2. For fiscal year 2025-26, the Government of India has targeted the fiscal deficit at what percentage of GDP?

A) 3.0%

B) 4.4%

C) 5.8%

D) 6.5%

Answer: B (Targeted fiscal deficit 4.4% of GDP)

3. In Q3 FY25, India’s current account deficit (CAD) rose to about:

A) 0.4% of GDP

B) 0.8% of GDP

C) 1.1% of GDP

D) 2.0% of GDP

Answer: C (CAD widened to 1.1% of GDP)

4. Credit disbursement to priority sectors (agriculture, MSME, social infrastructure) in India rose from ~₹ 23 lakh crore in 2019 to roughly what by 2024?

A) ₹ 30 lakh crore

B) ₹ 35 lakh crore

C) ₹ 42.7 lakh crore

D) ₹ 50 lakh crore

Answer: C (Credit to priority sectors jumped to ₹ 42.7 lakh crore)

5. Which Act seeks to replace the old income-tax statute in India, simplifying tax compliance, as of August 2025?

A) Income-tax Act, 1961

B) Goods & Services Tax Act, 2025

C) Income-tax Act, 2025

D) Fiscal Responsibility & Budget Management Act, 2025

Answer: C (Income-tax Act, 2025)

6. The cumulative inward greenfield investment into India’s digital economy (2020-24) was reported at around:

A) US$ 50 billion

B) US$ 75 billion

C) US$ 114 billion

D) US$ 150 billion

Answer: C (USD 114 billion)

9. According to recent RBI commentary, which of the following factors is less of a concern helping make room for monetary easing?

A) Softening inflation

B) Strong domestic consumption

C) Rising global bond yields

D) Weaker external demand

Answer: C (Rising global bond yields are a head-wind, not a support for easing)

10. In the Union Budget for 2025-26, which of the following was a key fiscal target?

A) Debt-to-GDP to increase to 60%

B) Fiscal deficit to 4.4% and debt ratio fall thereafter

C) No change in deficit target

D) Deficit to be capped at 2.5%

Answer: B (Deficit targeted at 4.4%, path to reducing debt ratio)

11. Which of these sectors saw notable lending stress in India in 2025, as per a report on microfinance?

A) Large corporate loans

B) Microfinance / small-ticket lending

C) Government borrowing

D) Export credit only

Answer: B (Microfinance loan portfolio shrank, defaults rose)

12. Which of the following states flagged a potential revenue loss of ₹13,000-₹15,000 crore annually due to GST rationalisation?

A) Kerala

B) Tamil Nadu

C) Maharashtra

D) Rajasthan

Answer: B (Tamil Nadu said it could lose ₹13-15k crore)

13. The RBI reported a revival in which part of India’s economy, contributing to resilience in challenging global environment?

A) Capital goods exports

B) Domestic consumption

C) Foreign direct investment

D) Commodity production

Answer: B (Domestic consumption revival)

14. The Government of India’s borrowings for 2025-26 were increased to approx how much (gross) to manage fiscal operations?

A) ₹ 10 trillion

B) ₹ 12 trillion

C) ₹ 14.82 trillion

D) ₹ 20 trillion

Answer: C (Borrowing raised to ~₹ 14.82 trillion)

15. Which of these describes the RBI’s current (as of October 2025) policy stance?

A) Aggressive tightening

B) Neutral, with some favouring accommodative

C) Already deeply accommodative

D) No policy meeting scheduled

Answer: B (RBI maintained neutral stance; some members favour accommodative)

16. A key reform in the new Income-tax Act 2025 is:

A) Increase in number of tax slabs only

B) Unified “Tax Year” replacing separate assessment and previous year concept

C) Abolition of direct taxes entirely

D) No change in tax compliance mechanism

Answer: B (New Act streamlines by unifying tax year concept)

17. Which of the following is not a source of the 1.1% CAD figure for Q3 FY25?

A) A merchandise trade deficit of around US$ 79.2 billion

B) Net services receipts of US$ 51.2 billion

C) Foreign Portfolio Investment inflows of US$ 50 billion

D) Private transfer remittances of US$ 35.1 billion

Answer: C (FPI had outflows of US$ 11.4 billion, not inflows)

18. India’s fiscal policy shift from 2026-27 aims to move the benchmark from fiscal-deficit focus to what?

A) Unemployment rate control

B) Debt-to-GDP ratio

C) Trade surplus

D) Inflation target

Answer: B (Shift benchmark to debt-to-GDP from 2026-27)

19. Which of the following is true regarding India’s reported “Historic” Diwali trade in 2025?

A) Goods trade was ₹ 3 lakh crore

B) Services boost was ₹ 65,000 crore

C) It was the lowest ever Diwali trade

D) Retail trade fell year-on-year

Answer: B (Services added ~₹ 65,000 crore)

20. The 2025 Union Budget was tabled on what date?

A) January 1, 2025

B) February 1, 2025

C) March 1, 2025

D) April 1, 2025

Answer: B (Budget presented 1 February 2025)

21. According to recent analysis, which of the following is acting as a head-wind for India’s equity markets?

A) Domestic consumption resurgence

B) High US bond yields

C) Strong corporate earnings

D) Falling inflation only

Answer: B (High US bond yields are causing capital outflows)

22. The microfinance sector in India saw its average ticket-size loan in FY25 rise by about:

A) 5%

B) 11.5%

C) 20%

D) 30%

Answer: B (Average loan size rose by ~11.5%)

23. Which of the following is not a feature of the revised Income-tax Act, 2025?

A) Passed August 2025

B) Force from 1 April 2026

C) No longer distinguishes “assessment year” and “previous year”

D) Introduces multiple new tax slabs only

Answer: D (It does more than just introduce new slabs; core is simplification)

24. Tamil Nadu stated the interest bill on inherited debt from previous regime was approximately:

A) ₹ 50,000 crore yearly

B) ₹ 80,000 crore yearly

C) ₹ 1.4 lakh crore yearly

D) ₹ 2 lakh crore yearly

Answer: C (Interest payment ~₹ 1.4 lakh crore)

25. Which of the following statements is correct as per RBI’s view of the Indian economy in October 2025?

A) External demand is very strong

B) Inflation is accelerating

C) Domestic consumption is providing support

D) Economy is facing collapse

Answer: C (Domestic consumption revival is cushioning the economy)

26. The fiscal deficit for the year 2024-25 (prior year) was around which figure (as indicated when set target for 2025-26)?

A) 3.6% of GDP

B) 4.8% of GDP

C) 6.2% of GDP

D) 7.0% of GDP

Answer: B (Previous year deficit ~4.8%)

27. In the Union Budget 2025-26, what was the debt-to-GDP ratio cited at the time of presentation?

A) 50%

B) 52%

C) 56.1%

D) 60%

Answer: C (Debt cited ~56.1% of GDP)