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IBPS Clerk Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the IBPS Clerical Cadre Examination: 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 type of account typically earns no interest in India?
Show answer & explanation
Answer: D — Current account
Current accounts for businesses usually pay no interest.
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Q2.Monetary policy is formulated in India by the:
Show answer & explanation
Answer: D — Monetary Policy Committee (MPC) of RBI
The six-member MPC sets the policy repo rate.
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Q3.Which instrument is used for transferring money electronically in real time for large values in India?
Show answer & explanation
Answer: C — RTGS
RTGS settles individual large-value transactions in real time.
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Q4.Which ratio measures a bank’s capital against its risk-weighted assets?
Show answer & explanation
Answer: C — CAR (CRAR)
Capital Adequacy Ratio = capital ÷ risk-weighted assets (Basel norms).
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Q5.The headquarters of the World Bank is in:
Show answer & explanation
Answer: C — Washington, D.C.
The World Bank Group is based in Washington, D.C.
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Q6.The repo rate is the rate at which:
Show answer & explanation
Answer: A — 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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Q7.When the demand for a good rises as income rises, the good is a:
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Answer: D — Normal good
Normal goods have positive income elasticity.
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Q8.Stagflation is a combination of:
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Answer: A — Stagnant growth and high inflation
Stagflation = stagnant economic growth + high inflation + often high unemployment.
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Q9.CRR stands for:
Show answer & explanation
Answer: D — Cash Reserve Ratio
Banks must keep a share of deposits as cash with the central bank — the Cash Reserve Ratio.
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Q10.Opportunity cost is:
Show answer & explanation
Answer: D — The value of the next best alternative forgone
It is the benefit given up by choosing one option over the next best.
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 IBPS Clerk
IBPS Clerical Cadre Examination — conducted by Institute of Banking Personnel Selection (IBPS). Recruits customer service associates (clerks) for public sector banks.
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.
IBPS Clerk practice topics
| Topic | Section | Question source |
|---|---|---|
| Number System & Simplification | Quantitative aptitude | Calculated (new numbers every set) |
| Percentages | Quantitative aptitude | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |
| Computer Awareness | Computer knowledge | Question bank |