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NABARD Grade A Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the NABARD Assistant Manager (Grade A) 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.The ‘lender of last resort’ in an economy is usually the:
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Answer: C — Central bank
Central banks provide emergency liquidity to banks.
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Q2.Which ratio measures a bank’s capital against its risk-weighted assets?
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Answer: A — CAR (CRAR)
Capital Adequacy Ratio = capital ÷ risk-weighted assets (Basel norms).
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Q3.What does GDP stand for?
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Answer: A — Gross Domestic Product
GDP measures the market value of final goods and services produced within a country.
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Q4.Which type of account typically earns no interest in India?
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Answer: B — Current account
Current accounts for businesses usually pay no interest.
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Q5.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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Q6.A cheque that is presented more than three months after its date is:
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Answer: A — Stale
In India a cheque is valid for three months; after that it is stale.
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Q7.Which instrument is used for transferring money electronically in real time for large values in India?
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Answer: C — RTGS
RTGS settles individual large-value transactions in real time.
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Q8.Inflation that is very high and accelerating is called:
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Answer: C — Hyperinflation
Hyperinflation is extremely rapid price growth (often >50% a month).
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Q9.CRR stands for:
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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.Which body regulates the securities market in India?
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Answer: A — SEBI
The Securities and Exchange Board of India (SEBI).
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 NABARD Grade A
NABARD Assistant Manager (Grade A) Examination — conducted by National Bank for Agriculture and Rural Development (NABARD). Recruits Assistant Managers for India’s apex development bank for agriculture and rural finance.
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.
NABARD Grade A practice topics
| Topic | Section | Question source |
|---|---|---|
| Economy & Banking Awareness | General awareness | Question bank |
| Accounting & Finance | Finance | Calculated + question bank |
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |