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CMAT Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the Common Management Admission Test: 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 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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Q2.Stagflation is a combination of:
Show answer & explanation
Answer: D — Stagnant growth and high inflation
Stagflation = stagnant economic growth + high inflation + often high unemployment.
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Q3.A Non-Performing Asset (NPA) in India is a loan overdue for more than:
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Answer: D — 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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Q4.The repo rate is the rate at which:
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Answer: D — The central bank lends to commercial banks
Repo is the rate at which the central bank lends short-term funds to banks against securities.
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Q5.What does GDP stand for?
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Answer: B — Gross Domestic Product
GDP measures the market value of final goods and services produced within a country.
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Q6.CRR stands for:
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Answer: B — Cash Reserve Ratio
Banks must keep a share of deposits as cash with the central bank — the Cash Reserve Ratio.
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Q7.The ‘lender of last resort’ in an economy is usually the:
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Answer: A — Central bank
Central banks provide emergency liquidity to banks.
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Q8.When the demand for a good rises as income rises, the good is a:
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Answer: C — Normal good
Normal goods have positive income elasticity.
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Q9.Fiscal deficit refers to:
Show answer & explanation
Answer: C — Total expenditure minus total receipts excluding borrowings
Fiscal deficit = total expenditure − total receipts (excluding borrowings): the government’s borrowing requirement.
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Q10.The headquarters of the World Bank is in:
Show answer & explanation
Answer: D — Washington, D.C.
The World Bank Group is based in Washington, D.C.
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 CMAT
Common Management Admission Test — conducted by National Testing Agency (NTA). National-level MBA/PGDM entrance accepted by AICTE-approved institutes.
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.
CMAT practice topics
| Topic | Section | Question source |
|---|---|---|
| Percentages | Quantitative aptitude | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |
| World General Knowledge | General awareness | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |