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IBPS SO Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the IBPS Specialist 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.Opportunity cost is:
Show answer & explanation
Answer: C — 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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Q2.Which type of account typically earns no interest in India?
Show answer & explanation
Answer: A — Current account
Current accounts for businesses usually pay no interest.
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Q3.CRR stands for:
Show answer & explanation
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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Q4.Inflation that is very high and accelerating is called:
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Answer: D — Hyperinflation
Hyperinflation is extremely rapid price growth (often >50% a month).
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Q5.UPI in India stands for:
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Answer: B — Unified Payments Interface
UPI, run by NPCI, enables instant bank-to-bank payments.
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Q6.A bear market is characterised by:
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Answer: A — Falling prices
A bear market is a sustained decline in asset prices (often 20% or more).
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Q7.The Goods and Services Tax (GST) in India was introduced on:
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Answer: A — 1 July 2017
GST was rolled out on 1 July 2017.
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Q8.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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Q9.Stagflation is a combination of:
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Answer: C — Stagnant growth and high inflation
Stagflation = stagnant economic growth + high inflation + often high unemployment.
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Q10.The ‘lender of last resort’ in an economy is usually the:
Show answer & explanation
Answer: D — 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 SO
IBPS Specialist Officer Examination — conducted by Institute of Banking Personnel Selection (IBPS). Recruits IT, agriculture, law, HR, marketing and Rajbhasha specialist officers 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 SO practice topics
| Topic | Section | Question source |
|---|---|---|
| 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 |
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |