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ACCA Applied Knowledge Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the ACCA Applied Knowledge exams (BT, MA, FA): 10 multiple-choice questions, each with the correct answer and a worked explanation. Click an option to check it, or “New questions” for another set.
Economy & Banking Awareness practice
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Q1.Which instrument is used for transferring money electronically in real time for large values in India?
Show answer & explanation
Answer: A — RTGS
RTGS settles individual large-value transactions in real time.
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Q2.A Non-Performing Asset (NPA) in India is a loan overdue for more than:
Show answer & explanation
Answer: C — 90 days
Under RBI norms a loan becomes an NPA when interest or principal is overdue for more than 90 days.
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Q3.Which type of account typically earns no interest in India?
Show answer & explanation
Answer: C — Current account
Current accounts for businesses usually pay no interest.
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Q4.Which ratio measures a bank’s capital against its risk-weighted assets?
Show answer & explanation
Answer: A — CAR (CRAR)
Capital Adequacy Ratio = capital ÷ risk-weighted assets (Basel norms).
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Q5.Which body regulates the securities market in India?
Show answer & explanation
Answer: D — SEBI
The Securities and Exchange Board of India (SEBI).
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Q6.A cheque that is presented more than three months after its date is:
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Answer: C — Stale
In India a cheque is valid for three months; after that it is stale.
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Q7.Opportunity cost is:
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Answer: D — The value of the next best alternative forgone
It is the benefit given up by choosing one option over the next best.
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Q8.The ‘lender of last resort’ in an economy is usually the:
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Answer: D — Central bank
Central banks provide emergency liquidity to banks.
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Q9.What does GDP stand for?
Show answer & explanation
Answer: D — Gross Domestic Product
GDP measures the market value of final goods and services produced within a country.
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Q10.Monetary policy is formulated in India by the:
Show answer & explanation
Answer: C — Monetary Policy Committee (MPC) of RBI
The six-member MPC sets the policy repo rate.
How to approach economy & banking awareness questions
Know what each regulator does (RBI, SEBI, IRDAI, PFRDA), the policy tools (repo, CRR, SLR) and the definitions behind GDP, inflation and fiscal deficit. Check current rates in the latest official releases.
About ACCA Applied Knowledge
ACCA Applied Knowledge exams (BT, MA, FA) — conducted by Association of Chartered Certified Accountants (ACCA). The first ACCA level: Business & Technology, Management Accounting and Financial Accounting.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
ACCA Applied Knowledge practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |