RBI Grade B Phase 2 2026 Memory-Based Questions with Answers (ESI and FM)

Last updated: 2026-11-07 · MockMentor

RBI Grade B 2026 Phase-II was held on 25 July 2026. These are the questions candidates recalled from Paper-I (Economic and Social Issues, ESI) and Paper-III (Finance and Management, FM), with answers and a note on where each topic was covered in MockMentor material.

These are memory-based questions, not the official paper. Our aim is to show the types of questions asked, the topics they cover, and the depth and pattern RBI expects, so you can use them for the 2027 cycle.

How much of the paper MockMentor covered

Paper Questions Not covered
FM objective 24 1 (could not be confirmed)
FM descriptive 9 1
ESI objective 26 3
ESI descriptive 8 1

Five FM objective and four ESI objective questions could not be reconstructed. Descriptive counts include sub-questions. The one FM descriptive question not in our notes was covered in the Interview Guidance Programme. The one ESI descriptive topic not covered directly, Feminisation of Agriculture, was available through our current affairs magazines and the Government Schemes document.

For the full topic-wise trend across 2023–2026, see our Phase 2 question analysis.

Finance and Management: objective questions

Q1. Choose the statement regarding Immanuel Kant's Ethical Model. (1 mark)

Answer: Human beings should always be treated as ends in themselves and never merely as means.

Covered in MockMentor material: Yes, in Ethics Part-1

Q2. Find out a key feature of Transactional Leadership among the given options. (1 mark)

Answer: Motivating employees through rewards and penalties based on performance

Covered in MockMentor material: Yes, in Leadership Part-2

Q3. The previous management of a company intentionally inflated sales figures, created false receivables, and hid certain expenses to show higher profits. These manipulated financial statements were submitted to banks and investors to secure loans and attract investment. Once the irregularities came to light, the former management was removed, while the new management engaged independent auditors and introduced stronger internal controls. Which of the following unethical practices was primarily committed by the former management? (1 mark)

Answer: Financial statement fraud

Covered in MockMentor material: A very general question. Yes, in Corporate Governance in Banking

Q4. A question on Schools of Management (We couldn’t collect the exact question) Topic has been covered in the static notes

Covered in MockMentor material: Yes/No, depending on the question asked

Q5. Definition of NBFC (We couldn’t collect the exact question)

Covered in MockMentor material: Yes/No, depending on the question asked

Q6. Which of the following is not a wholly owned subsidiary of the Reserve Bank of India (RBI)? (1 mark)

Answer: National Bank for Agriculture and Rural Development

Covered in MockMentor material: Yes, in topic/chapter- RBI

Q7. According to the recommendations of the 16th Finance Commission, what is the percentage of the net proceeds of Union taxes (vertical devolution) allocated to the states? (1 mark)

Answer: 41%

Covered in MockMentor material: Yes, in topic/chapter 16th Finance Commission

Q8. As per the RBI’s foreign exchange regulations, exporters are generally required to realise and bring back to India the entire value of goods, software or services exported within what period from the date of export? (1 mark)

Answer: 9 months

Covered in MockMentor material: Yes, in RBI & SEBI Circulars 2nd fortnight June 2026

Q9. Under the RBI’s revised directions on lending against gold and silver collateral, which of the following correctly matches the maximum Loan-to-Value (LTV) ratio for consumption loans with the total loan amount per borrower?

  • A. Up to ₹2.5 lakh-75%; above ₹2.5 lakh and up to ₹5 lakh-80%; above ₹5 lakh-85%
  • B. Up to ₹2.5 lakh-85%; above ₹2.5 lakh and up to ₹5 lakh-80%; above ₹5 lakh-75%
  • C. Up to ₹2.5 lakh-90%; above ₹2.5 lakh and up to ₹5 lakh-85%; above ₹5 lakh-80%
  • D. Up to ₹2.5 lakh-80%; above ₹2.5 lakh and up to ₹5 lakh-75%; above ₹5 lakh-70%
  • E. A uniform LTV ratio of 75% for all loan amounts

Answer: B. Up to ₹2.5 lakh-85%; above ₹2.5 lakh and up to ₹5 lakh-80%; above ₹5 lakh-75%.

Covered in MockMentor material: Yes, in RBI & SEBI Circulars Mock Test_June

Q11–Q12. (Passage) Application-based question on OCEAN Personality model. A person is described and you have to figure out which personality trait is being displayed by the person.

Q11. Arjun is cheerful, talkative and socially active. He enjoys meeting new people, readily participates in social gatherings and prefers working with others rather than alone. According to the OCEAN Personality Model, which personality trait is reflected in Arjun’s behaviour? (2 marks)

  • A. Openness to Experience
  • B. Conscientiousness
  • C. Extraversion
  • D. Agreeableness
  • E. Neuroticism

Answer: C. Extraversion

Covered in MockMentor material: Yes, in personality chapter

Q12. Reena is organised, disciplined and dependable. She plans her tasks carefully, meets deadlines consistently and pays close attention to details while completing her work. According to the OCEAN Personality Model, which personality trait is reflected in Reena’s behaviour? (2 marks)

  • A. Openness to Experience
  • B. Conscientiousness
  • C. Extraversion
  • D. Agreeableness
  • E. Neuroticism

Answer: B. Conscientiousness

Covered in MockMentor material: Yes, in personality chapter

Q13. Employees are reluctant to accept the introduction of new technology because they do not possess the necessary skills and are concerned about their ability to perform their duties efficiently. To help them adjust to the new system, the organisation arranges workshops, hands-on training sessions and skill-enhancement programmes. Which method is being used to overcome resistance to change? (2 marks)

Answer: Facilitation and Support

(Kotter & Schlesinger's six methods for managing resistance to change)

Covered in MockMentor material: Direct- No Indirect- Yes (Thorough understanding of organizational change and organizational behaviour chapter)

Q14. An organisation informs its employees about the need for change, explains the problems with existing practices and prepares them mentally to accept new methods. According to Kurt Lewin's Change Management Model, which stage is being described? (2 marks)

Answer: Unfreezing

Covered in MockMentor material: Yes, in organizational change

Q15. Consider the following statements regarding credit and market risk measures:

  1. Value at Risk (VaR) estimates the maximum potential loss on a portfolio over a specified period at a given confidence level under normal market conditions.

  2. Loss Given Default (LGD) represents the proportion of an exposure that a lender is expected to lose if the borrower defaults, after considering recoveries.

  3. Exposure at Default (EAD) represents the total amount that a lender is exposed to when a borrower defaults.

Which of the statements given above are correct? (2 marks)

Answer: Statements 1, 2 and 3

Covered in MockMentor material: Yes, in Financial Risk Management

Q16–18. (Finance Numerical) (Exactly not known)

Q16. Gross Profit (2 marks)

Covered in MockMentor material: Yes/No, depending on the question asked

Q17. Calculate Net Profit (2 marks)

Covered in MockMentor material: Yes/No, depending on the question asked

Q18. Calculate Depreciation (2 marks)

Covered in MockMentor material: Yes/No, depending on the question asked

Q19–21. (Accounting numerical)

Parameter Detail
Income ₹75,000
Revenue from Operations ₹30,00,000
Total Assets ₹15,00,000
Shareholders' Funds ₹5,00,000

Q19. Based on the above information, what is the company's Return on Equity under the DuPont Model? (2 marks)

Answer: 15%

How to work it out (DuPont three-factor model): ROE = Net Profit Margin × Asset Turnover × Equity Multiplier

  • Net Profit Margin = 75,000 / 30,00,000 = 2.5%
  • Asset Turnover = 30,00,000 / 15,00,000 = 2×
  • Equity Multiplier = 15,00,000 / 5,00,000 = 3×
  • ROE = 2.5% × 2 × 3 = 15%

Covered in MockMentor material: Yes, in ratios chapter

Q20. What is the company's Equity Multiplier? (2 marks)

Answer: 3 (or 3×)

Covered in MockMentor material: Yes, in ratios chapter

How to work it out: Equity Multiplier = Total Assets / Shareholders' Funds = 15,00,000 / 5,00,000 = 3.

Q21. What is the company's Asset Turnover Ratio? (2 marks)

Answer: 2 (or 2×)

Covered in MockMentor material: Yes, in ratios chapter

How to work it out: Asset Turnover Ratio = Revenue from Operations / Total Assets = 30,00,000 / 15,00,000 = 2

Q22–25. (Passage) The Reserve Bank announced that it will continue to use the overnight weighted average call rate (WACR) as the operating target of the monetary policy. The Reserve Bank will, however, continue to keep track of rates in other overnight money market segments to ensure orderly evolution of money market rates and smoothen transmission. WACR is the average interest rate at which banks borrow and lend funds to each other for a short period, typically overnight, in the inter-bank call money market.

Q22. What is the formula for system liquidity, and what scenario does a negative value indicate - deficit or surplus? (2 marks)

Answer: System liquidity = Net borrowing from RBI − Excess reserves maintained by banks. A positive figure indicates deficit; a negative figure indicates surplus.

Q23. Which of the following correctly identifies the upper and lower bounds of the Liquidity Adjustment Facility (LAF) corridor, respectively? (2 marks)

  • A. Standing Deposit Facility and Marginal Standing Facility
  • B. Bank Rate and Policy Repo Rate
  • C. Marginal Standing Facility and Standing Deposit Facility
  • D. Policy Repo Rate and Fixed Rate Reverse Repo
  • E. Cash Reserve Ratio and Statutory Liquidity Ratio

Answer: C. Marginal Standing Facility and Standing Deposit Facility

Covered in MockMentor material: Yes, in RBI chapter notes

Q24. According to the RBI’s liquidity-management framework, Long-Term Variable Rate Repo and Long-Term Variable Rate Reverse Repo operations have tenors beyond how many days, respectively? (2 marks)

  • A. 7/14 days
  • B. 7/7 days
  • C. 7/21 days
  • D. 14/14 days
  • E. 28/28 days

Answer: D

Covered in MockMentor material: Yes, in RBI Annual Report

Q25. The Reserve Bank of India conducts short-term repo and reverse repo operations to address temporary mismatches between the demand for and supply of funds in the banking system. Which type of liquidity management is being described? (2 marks)

  • A. Durable liquidity management
  • B. Structural liquidity management
  • C. Transient liquidity management
  • D. Foreign exchange management
  • E. Public debt management

Answer: C. Transient liquidity management

Covered in MockMentor material: Yes, in RBI Annual Report

Q26. A stablecoin is primarily designed to maintain a relatively stable value and facilitate transactions. It is primarily used as which type of instrument? (2 marks)

Answer: Payment Instrument

Covered in MockMentor material: Yes, in highlighted Newspaper article and speech_stablecoins

Q27. The widespread use of privately issued stablecoins may reduce the government's control over currency issuance and the monetary system. Which principle is primarily affected in such a situation? (2 marks)

Answer: Principle of monetary sovereignty

Covered in MockMentor material: Yes, in speech_stablecoins

Q28. Consider the following statements regarding stablecoins:

  • A. Stablecoins are sovereign currencies issued exclusively by central banks.
  • B. Stablecoins always maintain their fixed value without any risk of deviation.
  • C. Stablecoins are crypto-assets designed to maintain a stable value relative to a currency, commodity or other reference asset.
  • D. Stablecoins provide holders with ownership rights in the issuing company.
  • E. Stablecoins cannot affect monetary sovereignty or the effectiveness of monetary policy.

Which of the statements given above is correct?

Answer: C

Covered in MockMentor material: Yes, in speech_stablecoins

Q29–Q30. (2 marks each) (only one of the two questions could be reconstructed)

A manufacturing company discovers that one of its suppliers employs children in unsafe working conditions. Although terminating the contract may increase production costs, the company evaluates the issue based on human rights, employee welfare, legal compliance and its responsibility towards society. It decides to discontinue the contract and adopt an ethical sourcing policy. Which branch of ethics is primarily reflected in this situation?

  • A. Meta-ethics
  • B. Descriptive ethics
  • C. Applied ethics
  • D. Normative economics
  • E. Moral relativism

Answer: C - Applied Ethics

Covered in MockMentor material: Yes, in ethics chapter part-1

Finance and Management: descriptive questions

Q1(a). Write a note on any three major styles of leadership. [7.5 Marks] (Covered in MockMentor material: Yes)

Q1(b). Explain the role of Information Technology in organisational communication. [7.5 Marks] (Covered in MockMentor material: Yes)

Q2. Discuss the role of the International Financial Services Centres Authority (IFSCA) in developing India as a global financial hub. [15 Marks] (Covered in MockMentor material: Yes, if you have read the Global Financial Markets from MockMentor very well)

Q3(a). Explain how the Reserve Bank of India earns income. On what basis does it retain a part of its income and transfer the remaining surplus to the Central Government? [7.5 Marks] (A part of the highlighted RBI Function and Working Document that you study as a part of the interview guidance program)

Q3(b). Write a note on the National Strategy for Financial Inclusion (NSFI) 2025–30. [7.5 Marks] (Covered in MockMentor material: Yes)

Q4. Explain the Johari Window Model. [10 Marks] (Covered in MockMentor material: Yes)

Q5(a). Explain the role of the Audit Committee in strengthening corporate governance. [5 Marks] (Covered in MockMentor material: Yes, if you have read the Corporate Governance chapter from MockMentor very well)

Q5(b). Explain conflict management. [5 Marks] (Covered in MockMentor material: Yes)

Q6. Explain the major payment system instruments used in India. [10 Marks] (Covered in MockMentor material: Yes)

Economic and Social Issues: objective questions

Q1. What is the full form of FRBM? (1 mark )

  • A. Fiscal Regulation and Banking Management
  • B. Financial Responsibility and Budget Monitoring
  • C. Fiscal Responsibility and Budget Management
  • D. Financial Regulation and Budget Management
  • E. Fiscal Reform and Banking Mechanism

Answer: C. Fiscal Responsibility and Budget Management

Covered in MockMentor material: Yes, in fiscal policy notes

Q2. Jal Jeevan Mission (JJM) aims to provide clean drinking water and improved sanitation, thereby contributing to which of the following Sustainable Development Goals (SDGs)? (1 mark )

Answer: SDG 6 - Clean Water and Sanitation, which aims to ensure availability and sustainable management of water and sanitation for all.

Covered in MockMentor material: Yes, in SDG chapter and in general current affairs

Q3. Rohit wants to open a Sukanya Samriddhi Yojana account for his daughter. Before proceeding, he's given the following conditions to keep in mind:

  1. The account can be opened for a girl child until she turns 15.
  2. His daughter can hold only one account under the scheme.
  3. He must contribute a minimum of ₹400 to the account each financial year.

Which of the above conditions are correct? (1 mark )

Answer: Only condition 2

Covered in MockMentor material: Yes, in Ministry of Finance Scheme Document

Q4. Country X keeps a detailed account of all its transactions with the rest of the world during a given period, covering trade in goods and services, income flows, unilateral transfers, foreign investment, and international borrowing. Which of the following terms best captures this comprehensive record? (1 mark )

Answer: Balance of Payments (BoP)

Covered in MockMentor material: Yes, in fortnight RBI & SEBI Circular quiz

Q5. An economy experiences a persistent increase in the general price level, driven by aggregate demand for goods and services outpacing what the economy is capable of producing. Which type of inflation does this describe? (1 mark )

Answer: Demand-pull inflation

Covered in MockMentor material: Yes, in Inflation chapter

Q6. Consider the following statements regarding the Senior Citizen Card:

  1. It is issued by the respective State Governments.
  2. It may be issued by the Tehsildar or another designated local authority.
  3. It can be used to avail concessions and benefits in services such as buses and railways, wherever applicable.
  4. It cannot be used digitally and is valid only in physical form.

Which of the statements given above are correct? (1 mark )

Answer: 1, 2 and 3 only

Q7. A question on Senior Citizen Saving Scheme (SCSS) (1 mark ) (Complete question is not known)

Covered in MockMentor material: Yes, in Ministry of Finance Scheme document. However, a lot more depends on the scheme asked.

Q8. A question on Green Hydrogen Hubs/ Ports (1 mark ) (Complete question is not known)

Covered in MockMentor material: Yes, in current affairs fortnight scheme magazine. However, a lot more depends on the question asked.

Q11–Q13. (Passage) On FRBM (Fiscal Responsibility and Budget Management) Fiscal discipline is essential for maintaining macroeconomic stability and ensuring the sustainable management of public finances. Excessive government borrowing can increase the interest burden, restrict developmental expenditure and transfer financial liabilities to future generations. Therefore, governments adopt legislative and institutional mechanisms to improve transparency, control deficits and manage public debt responsibly. Such frameworks also require regular disclosure of fiscal indicators and encourage governments to pursue prudent budgetary policies while allowing flexibility during exceptional circumstances such as economic crises, national emergencies or severe natural disasters.

Q11. What debt-to-GDP ratio is the Central Government required to work towards achieving by 2030–31? (2 marks)

  • A. 40 ± 1 per cent
  • B. 45 ± 1 per cent
  • C. 50 ± 1 per cent
  • D. 55 ± 1 per cent
  • E. 60 ± 1 per cent

Answer: C. 50 ± 1 per cent

Covered in MockMentor material: Yes, in Union Budget 2026-27

Q12. Which of the following statements is/are correct regarding the FRBM Act? (2 marks)

  • I. The Act aims to reduce the fiscal deficit to 3.5 per cent of GDP.

  • II. The Act mandates reducing the fiscal deficit by 0.3 per cent of GDP each year.

  • III. Since the rules came into force in 2004-05, the fiscal deficit target of 3 per cent of GDP has been achieved twice.

  • A. Only I

  • B. Only II

  • C. Only III

  • D. Both I and II

  • E. Both II and III

Answer: B. Only II

Covered in MockMentor material: Yes, in Fiscal Policy and FRBM Act

Q13. Consider the following statements regarding India's fiscal deficit trajectory under the original FRBM roadmap: (2 marks)

  1. By FY2007-08, the fiscal deficit had been brought down to approximately 2.7% of GDP, briefly below the Act's original 3% target ahead of its FY2008-09 deadline.
  2. This consolidation trend continued uninterrupted, and the 3% target has been durably maintained ever since.
  3. The 2008 global financial crisis forced the government to reverse course, pushing the fiscal deficit back up through stimulus spending.

Which of the statements given above is/are correct?

Answer: 1 and 3 only

Q14–Q16. Passage (Periodic Labour Force Survey) The National Statistics Office (NSO) regularly conducts the Periodic Labour Force Survey (PLFS) to track India's labour market. Alongside this, the NSO recently proposed conducting a fresh Survey on Migration to update the country's migration data

Q14. Recently, the NSO proposed to conduct the Survey on Migration during which period? (2 marks)

Answer: July 2026-June 2027

Q15. Under PLFS, quarterly (three-month interval) estimates of key labour market indicators - LFPR, WPR, and Unemployment Rate - are released for Urban areas using which activity status approach? (2 marks)

Answer: Current Weekly Status (CWS) approach.

Covered in MockMentor material: Yes, in highlighted PIB and fortnight magazine

Q16. The Multiple Indicator Survey was used to collect a range of information across households. Which of the following was not part of what it captured? (2 marks)

  • A. Household-level access to facilities such as drinking water, sanitation, and hygiene
  • B. Person-level information on education and ICT skills
  • C. Bank/financial account details along with indebtedness status
  • D. Construction/purchase of houses/flats for residential purposes before 31.03.2014
  • E. Personal-level information on migration particulars

Answer: D. The survey did cover housing construction/purchase but for the period after 31.03.2014, not before.

Q17–Q19. Passage (FREE-AI Committee Report) In August 2025, a committee constituted by the Reserve Bank of India released a report proposing a framework to guide the responsible and ethical adoption of artificial intelligence in India's financial sector. The framework rests on seven foundational guiding principles, alongside six strategic pillars spanning infrastructure, policy, capacity, governance, protection, and assurance, and translates into 26 actionable recommendations for regulators and financial entities.

Q17. Who chaired this committee, and how many members did it have? (2 marks)

  • A. A 5-member committee chaired by the RBI Governor
  • B. An 8-member committee chaired by Dr. Pushpak Bhattacharyya of IIT Bombay
  • C. A 12-member committee chaired by the Deputy Governor overseeing FinTech
  • D. An 8-member committee chaired by NITI Aayog's CEO
  • E. A 6-member committee chaired by a representative from Microsoft India

Answer: B

Q18. Which three of the committee's six strategic pillars fall under "innovation enablement," as distinct from "risk mitigation"? (2 marks)

  • A. Governance, Protection, and Assurance
  • B. Infrastructure, Governance, and Capacity
  • C. Infrastructure, Policy, and Capacity
  • D. Policy, Protection, and Assurance
  • E. Infrastructure, Policy, and Assurance

Answer: C

Q19. With reference to the Report discussed above, consider the following statements:

  1. The seven Sutras include Foundation, People First, Innovation over Restraint, Fairness and Equity, Accountability, Understandable by Design, and Safety, Resilience and Sustainability.
  2. A survey by the Department of Supervision found that only 20.80% of entities were using or developing AI systems.
  3. A survey by the FinTech Department found that 67% of the 76 entities covered were exploring at least one Generative AI use case.

Which of the statements given above are correct? (2 marks)

Answer: All three (1, 2 and 3) 2nd and 3rd statements are mentioned in the report, but mugging up such questions should not be your goal.

Q20. Consider the following statements regarding the Census in India:

  1. In Census 2011, the category "Other" was used to count transgender persons.
  2. Census 2027 will include caste enumeration for the first time since 1931.
  3. Households that opt for self-enumeration are not visited or verified by an enumerator afterward.

Which of the statements given above is/are correct? (2 marks)

Answer: 1 and 2 only

Q21–Q24. Passage (Lakhpati Didi) Women who are members of Self-Help Groups (SHGs) under the government's __________ can be formally certified as "Lakhpati Didis" once their household income crosses a defined threshold. Given the strong progress made so far, the government has revised its ambition for the initiative upward.

Q21. Which government mission does the blank refer to? (2 marks)

Answer: DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihoods Mission)

Covered in MockMentor material: Yes, in scheme document-Ministry of Rural Development DAY-NRLM is the umbrella rural livelihoods mission that organises women into SHGs under which the Lakhpati Didi initiative operates.

Q22. By which year does the government now aim to help 6 crore SHG members reach Lakhpati Didi status? (2 marks)

Answer: March 2029

Covered in MockMentor material: Yes, in scheme document-Ministry of Rural Development

Q23. What financial benchmark must an SHG member's household cross to be officially recognised as a Lakhpati Didi? (2 marks)

Answer: A sustained annual household income of ₹1,00,000 or more, averaging at least ₹10,000/month, maintained across at least four agricultural seasons or business cycles.

Covered in MockMentor material: Yes, in channel and fortnight mocks

Q24. Who currently heads the Lakhpati Didi initiative? (2 marks)

Answer: Union Minister Shivraj Singh Chouhan (Minister of Rural Development, and Agriculture & Farmers' Welfare).

Covered in MockMentor material: Covered the scheme in Ministry of Rural Development chapter. If you knew that the scheme is covered under this ministry, you would have mark the answer correctly.

Q25. Passage (PMGKAY- Pradhan Mantri Garib Kalyan Anna Yojana) In an effort to strengthen food security and support low-income households, the Central Government has continued a scheme providing subsidised and, in several phases, free foodgrains to identified beneficiary categories across the country. The scheme operates through the public distribution system, with entitlements varying by household category, and is periodically extended by the Government for further multi-year periods. Consider the following statements regarding the scheme discussed in the passage above:

  1. The scheme provides foodgrains to beneficiaries covered under the National Food Security Act, 2013.
  2. Antyodaya Anna Yojana households are entitled to receive 35 kg of foodgrains per household per month.
  3. Institutional landholders are eligible to receive benefits under the scheme.
  4. The scheme provides eligible farmer families with annual financial assistance of ₹6,000 in three equal installments.

Which of the statements given above are correct? (2 marks)

Answer: 1 and 2 only

Q26–Q28. Passage (IMF World Economic Outlook) In April 2026, the International Monetary Fund released its flagship assessment of the global economy, presenting growth, inflation, and fiscal projections for major economies alongside an analysis of near-term risks and policy priorities. The publication anchors the Fund's Spring and Fall Meetings and has long served as a key reference for policymakers and market participants worldwide.

Q26. Consider the following statements regarding the report discussed above:

  1. It is published semi-annually.
  2. This edition is the 17th edition of the report.
  3. The releasing body has been releasing this report since 1980.

Which of the following is/are correct? (2 marks)

Answer: 1 and 3 only

Q27. Which of the following reports is prepared using the database created during the biannual IMF exercise described above? (2 marks)

  • A. Global Financial Stability Report
  • B. World Economic Outlook report
  • C. Fiscal Monitor
  • D. Article IV Consultation Report
  • E. Regional Economic Outlook

Answer: B

Q28. According to the report, which of the following economies are projected to grow faster than the world economy in both 2026 and 2027? (2 marks)

  • A. United States and Japan
  • B. China and the Euro Area
  • C. India and China
  • D. India and the United States
  • E. Japan and Euro Area

Answer: C

Covered in MockMentor material: Yes, with respect to India in IMF WEO and fortnight tests. China could have been inferred with the help of option elimination techniques if you understood it well that US and Euro growth is projected to be very slow. Even if you have not read the report, but following the highlighted newspaper daily, this could have been done.

Q29. (Passage: World Economic Forum's May 2026 Chief Economists' Outlook)

The World Economic Forum's May 2026 Chief Economists' Outlook finds that 89% of chief economists expect global growth to weaken over the next 12 months, with more than one in five expecting a significant weakening. The Middle East conflict and closure of the Strait of Hormuz have triggered a shock now shaping global prospects, as shortages of fuel, fertilizer, and other essentials ripple through economies. Inflation has re-emerged as the dominant near-term concern. 94% of chief economists agree or strongly agree that global inflation will rise over the next year, driven mainly by energy and food prices. Still, the outlook isn't one of imminent global recession: 58% disagree or strongly disagree that a recession will hit within the next year. The bigger worry is a weaker, more volatile economy with limited gains in resilience, six in ten respondents do not expect the economy to become more resilient. Which of the following is correct about the report?

  • A. 62% of chief economists anticipate significantly higher energy prices in South-East Asia over the next 12 months.

  • B. 41% of chief economists anticipate significantly higher energy prices in Japan over the next 12 months.

  • C. 65% of respondents expect weak or very weak growth in Europe.

  • D. In Sub-Saharan Africa, 67% of respondents expect high or very high inflation.

  • E. All of the above.

Answer: E - All of the above

Q30. (Passage: IMF's Fiscal Monitor)

The war in the Middle East is putting pressure on people, firms, and countries at a moment when public finances are already strained by long-term issues. Higher energy and food prices, tighter financial conditions, and greater uncertainty are once again prompting calls for fiscal support. In showing their responses to this shock, countries will need to carefully consider the balance between protecting the most vulnerable and preserving market price signals. The latest report argues that, with debt already elevated in many countries, fiscal policy must respond cautiously, providing support where needed without pushing public finances closer to the brink. The report's projections are based on the same database used for the ___ and the ___.

Answer: World Economic Outlook (WEO) and the Global Financial Stability Report (GFSR)

Covered in MockMentor material: Yes, in the IMF Fiscal Monitor Report

Economic and Social Issues: descriptive questions

Q1. Explain the Government of India's vision for promoting the Orange Economy and discuss the key initiatives undertaken in this direction. (10 Marks) (Covered in MockMentor material: Yes)

Q2(a). Discuss the role of the VB-GRAM-G Scheme in strengthening the rural economy. (4 Marks) (Covered in MockMentor material: Yes)

Q2(b). Explain how the worker-centric provisions of the Scheme promote the dignity and safety of rural workers. (6 Marks) (Covered in MockMentor material: Yes)

Q3(a). Discuss stablecoins and examine the major security challenges associated with them. (5 Marks) (Covered in MockMentor material: Yes, in speech_Stablecoins)

Q3(b). Explain the key features of Mission Shakti. (5 Marks) (Covered in MockMentor material: Yes)

Q4. Discuss the major challenges in realising India's demographic dividend and suggest measures to harness its potential effectively. (15 Marks) (Covered in MockMentor material: Yes)

Q5. Discuss the major challenges arising from the feminisation of agriculture in India. Explain the government initiatives aimed at promoting innovation and strengthening institutional support for women farmers. (15 Marks)

Q6. Discuss the major highlights of the National Strategy for Financial Inclusion (NSFI) 2025-30 and examine its relevance to India's Sustainable Development Goals. (15 Marks) (Covered in MockMentor material: Yes)

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