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IBPS PO Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the IBPS Probationary Officer 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.CRR stands for:
Show answer & explanation
Answer: C — Cash Reserve Ratio
Banks must keep a share of deposits as cash with the central bank — the Cash Reserve Ratio.
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Q2.Which type of account typically earns no interest in India?
Show answer & explanation
Answer: B — Current account
Current accounts for businesses usually pay no interest.
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Q3.The repo rate is the rate at which:
Show answer & explanation
Answer: C — 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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Q4.Which instrument is used for transferring money electronically in real time for large values in India?
Show answer & explanation
Answer: B — RTGS
RTGS settles individual large-value transactions in real time.
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Q5.Which ratio measures a bank’s capital against its risk-weighted assets?
Show answer & explanation
Answer: D — CAR (CRAR)
Capital Adequacy Ratio = capital ÷ risk-weighted assets (Basel norms).
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Q6.A Non-Performing Asset (NPA) in India is a loan overdue for more than:
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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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Q7.A bear market is characterised by:
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Answer: D — Falling prices
A bear market is a sustained decline in asset prices (often 20% or more).
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Q8.UPI in India stands for:
Show answer & explanation
Answer: D — Unified Payments Interface
UPI, run by NPCI, enables instant bank-to-bank payments.
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Q9.Opportunity cost is:
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Answer: B — 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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Q10.The ‘lender of last resort’ in an economy is usually the:
Show answer & explanation
Answer: A — Central bank
Central banks provide emergency liquidity to banks.
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 PO
IBPS Probationary Officer Examination — conducted by Institute of Banking Personnel Selection (IBPS). Recruits Probationary Officers for participating public sector banks through prelims, mains and interview.
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 PO practice topics
| Topic | Section | Question source |
|---|---|---|
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Percentages | Quantitative aptitude | Calculated (new numbers every set) |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| Verbal Reasoning & Analogies | Reasoning | Calculated + question bank |
| English Grammar | English | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |