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SBI PO Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the SBI 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.Which body regulates the securities market in India?
Show answer & explanation
Answer: B — SEBI
The Securities and Exchange Board of India (SEBI).
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Q2.The headquarters of the World Bank is in:
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Answer: B — Washington, D.C.
The World Bank Group is based in Washington, D.C.
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Q3.UPI in India stands for:
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Answer: C — Unified Payments Interface
UPI, run by NPCI, enables instant bank-to-bank payments.
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Q4.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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Q5.Fiscal deficit refers to:
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Answer: B — Total expenditure minus total receipts excluding borrowings
Fiscal deficit = total expenditure − total receipts (excluding borrowings): the government’s borrowing requirement.
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Q6.A cheque that is presented more than three months after its date is:
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Answer: C — Stale
In India a cheque is valid for three months; after that it is stale.
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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.Monetary policy is formulated in India by the:
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Answer: B — Monetary Policy Committee (MPC) of RBI
The six-member MPC sets the policy repo rate.
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Q9.Inflation that is very high and accelerating is called:
Show answer & explanation
Answer: B — Hyperinflation
Hyperinflation is extremely rapid price growth (often >50% a month).
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Q10.When the demand for a good rises as income rises, the good is a:
Show answer & explanation
Answer: A — Normal good
Normal goods have positive income elasticity.
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 SBI PO
SBI Probationary Officer Examination — conducted by State Bank of India (SBI). India’s largest bank recruits officers through a prelims, mains and psychometric/interview stage.
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.
SBI PO practice topics
| Topic | Section | Question source |
|---|---|---|
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Probability & Combinatorics | Mathematics | 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 |