Ten MCQs on current International and national events - 174

PRERNA FOR IAS

(ASSOCIATE OF SAMKALP)

A-Category MCQs -174

1. With reference to the recent inflation situation in India, consider the following statements:

1. Retail inflation increased to 4.82% in August 2026.
2. Food inflation increased to 5.95% in August 2026.
3. RBI's inflation target is 4%, with a tolerance band of 2% to 6%.
4. A rise in policy interest rates can directly increase the physical supply of food commodities.

Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (a)

Explanation: Statements 1, 2 and 3 are supported by the summary. Retail inflation rose from 4.45% in July to 4.82% in August, while food inflation increased from 5.52% to 5.95%. The RBI's inflation target is 4%, within the 2–6% tolerance band. Statement 4 is incorrect. Monetary tightening can moderate demand and inflation expectations, but it cannot directly produce additional sugar, onions or other food items. Elimination clue: Distinguish between demand-management tools and supply-side measures. Food-supply shocks often require agricultural, trade and logistics interventions.

2. With reference to El Niño and India's food-security situation in 2026, consider the following statements:

1. All-India southwest monsoon rainfall was below the long-period average by September 14.
2. Total acreage alone may not adequately indicate final agricultural production.
3. A strong El Niño can potentially influence both kharif conditions and the subsequent rabi season.
4. Agricultural production depends only on the total quantity of seasonal rainfall and not on its temporal distribution.

Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (a)

Explanation: Statements 1, 2 and 3 are correct according to the summary. Rainfall was 14.7% below the long-period average by September 14, while acreage figures could conceal possible yield losses. The report also notes that a strong El Niño could produce a warmer, shorter winter and affect rabi crops such as wheat, mustard, pulses, potato and onion. Statement 4 is incorrect because the summary specifically emphasises the spatial and temporal distribution of rainfall. Elimination clue: In agriculture, “normal acreage” or even reasonable total rainfall does not automatically imply normal output.

3. With reference to the recent policy concerning UPI and RuPay transactions, consider the following statements: