Dear Manjusha,
The primary difference between a reflection spot (RS) and an LbD is that LbD is meant to be a formative assessment with learner-specific feedback from the instructor/peers, whereas an RS is not an assessment. RS is only meant to engage the learners from the monotony of the lecture. RS is placed within an LeD whereas LbDs are provided after an LeD. As you have rightly said, an RS can also use MCQs. However, a learner is not expected to put effort into answering an RS, which is typically required for performing an LbD. I hope I have answered your query.
Regards,
Dr. Siddhi S
Discussion Forum Moderator (DFM)
Designing LCM Course Team