UPSC Prelims Practice Questions — IMF cuts growth outlook, warns of recession

Q1. Which one of the following is the flagship publication of the IMF that provides its principal global and regional growth and inflation projections?

  • A. Global Financial Stability Report
  • B. World Economic Outlook
  • C. Fiscal Monitor
  • D. External Sector Report

Q2. The day-to-day business of the International Monetary Fund is conducted by which one of the following organs?

  • A. Board of Governors
  • B. Executive Board
  • C. International Monetary and Financial Committee
  • D. Development Committee

Q3. Which one of the following is the highest decision-making body of the International Monetary Fund?

  • A. Executive Board
  • B. Board of Governors
  • C. Managing Director's Office
  • D. International Monetary and Financial Committee

Q4. In the IMF's April 2026 World Economic Outlook, what does the 'reference scenario' denote?

  • A. The baseline projection assuming a short-lived, limited conflict and a moderate (around 19%) rise in energy prices
  • B. The worst-case projection assuming a prolonged closure of the Strait of Hormuz
  • C. The projection that assumes oil prices spike 100-200% and remain elevated through 2027
  • D. A projection that excludes the effects of the Iran war altogether

Q5. According to the IMF's April 2026 World Economic Outlook, which economy retained its position as the fastest-growing major economy?

  • A. China
  • B. India
  • C. Indonesia
  • D. Brazil

Q6. The upward revision of India's growth projection to 6.5% (for FY2026-27) was contained in which one of the following IMF releases?

  • A. World Economic Outlook Update, January 2026
  • B. World Economic Outlook, April 2026
  • C. World Economic Outlook, October 2025
  • D. World Economic Outlook, April 2025

Q7. How many currencies make up the basket that determines the value of the IMF's Special Drawing Rights (SDR)?

  • A. Three
  • B. Four
  • C. Five
  • D. Six