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UPSC Prelims Economy & Banking Awareness Questions
Practise economy & banking awareness (general awareness) for the UPSC Civil Services Preliminary 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 Goods and Services Tax (GST) in India was introduced on:
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Answer: D — 1 July 2017
GST was rolled out on 1 July 2017.
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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.A Non-Performing Asset (NPA) in India is a loan overdue for more than:
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Answer: B — 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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Q5.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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Q6.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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Q7.The headquarters of the World Bank is in:
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Answer: D — Washington, D.C.
The World Bank Group is based in Washington, D.C.
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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: 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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Q10.Which body regulates the securities market in India?
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Answer: C — 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 UPSC Prelims
UPSC Civil Services Preliminary Examination — conducted by Union Public Service Commission (UPSC). The first stage of India’s civil services recruitment, with a General Studies paper and the qualifying CSAT aptitude paper.
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.
UPSC Prelims practice topics
| Topic | Section | Question source |
|---|---|---|
| Indian Polity, History & Geography | General awareness | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |
| World General Knowledge | General awareness | Question bank |
| Biology | Science | Question bank |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| Percentages | Quantitative aptitude | Calculated (new numbers every set) |