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CSS (Pakistan) Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the Central Superior Services 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.A cheque that is presented more than three months after its date is:
Show answer & explanation
Answer: C — Stale
In India a cheque is valid for three months; after that it is stale.
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Q2.Monetary policy is formulated in India by the:
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Answer: A — Monetary Policy Committee (MPC) of RBI
The six-member MPC sets the policy repo rate.
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Q3.Opportunity cost is:
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Answer: A — 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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Q4.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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Q5.A bear market is characterised by:
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Answer: B — Falling prices
A bear market is a sustained decline in asset prices (often 20% or more).
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Q6.Which type of account typically earns no interest in India?
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Answer: A — Current account
Current accounts for businesses usually pay no interest.
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Q7.Fiscal deficit refers to:
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Answer: A — Total expenditure minus total receipts excluding borrowings
Fiscal deficit = total expenditure − total receipts (excluding borrowings): the government’s borrowing requirement.
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Q8.Inflation that is very high and accelerating is called:
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Answer: B — Hyperinflation
Hyperinflation is extremely rapid price growth (often >50% a month).
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Q9.The ‘lender of last resort’ in an economy is usually the:
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Answer: D — Central bank
Central banks provide emergency liquidity to banks.
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Q10.What does GDP stand for?
Show answer & explanation
Answer: D — Gross Domestic Product
GDP measures the market value of final goods and services produced within a country.
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 CSS (Pakistan)
Central Superior Services Examination — conducted by Federal Public Service Commission (FPSC). Recruits officers for Pakistan’s federal civil services; begins with the MPT screening test.
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.
CSS (Pakistan) practice topics
| Topic | Section | Question source |
|---|---|---|
| World General Knowledge | General awareness | Question bank |
| English Grammar | English | Question bank |
| Vocabulary & Idioms | English | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |