Example 1
GST was introduced in India on
Answer: D) 1 July 2017
GST replaced several indirect taxes from 1 July 2017.
Indian Economy and Banking questions for competitive exams: rules, worked examples and practice
Economy questions cover the RBI and banking, government finance, inflation and national income.
Key rules and formulas
- RBI tools: repo rate, reverse repo, CRR, SLR and open market operations.
- Fiscal deficit = total expenditure − total receipts excluding borrowings.
- GST replaced several indirect taxes from 1 July 2017.
- SEBI regulates the securities market; IRDAI regulates insurance.
Common traps
- Confusing CRR (cash with the RBI) with SLR (liquid assets kept by the bank).
- Mixing up fiscal and primary deficit (primary = fiscal − interest payments).
Where Indian Economy and Banking is asked
- RRB Group D (General Awareness & Current Affairs)
- RRB NTPC CBT 1 (General Awareness)
- SSC CGL Tier 1 (General Awareness)
- SSC CGL Tier 2 (General Awareness)
- SSC CHSL Tier 1 (General Awareness)
- UPSC CSE GS 1 (Economic & Social Development)
Worked examples
Example 2
The Reserve Bank of India was established in
Answer: D) 1935
It began operations on 1 April 1935; it was nationalised in 1949.
Example 3
What is the currency of Japan?
Answer: A) Yen
The yen is Japan's currency.
More Indian Economy and Banking practice questions
- The repo rate is the rate at which
- Where is the headquarters of the RBI?
- Where is the headquarters of the International Monetary Fund?
- The Basel norms relate to
- Stagflation is a situation of
- The Cash Reserve Ratio (CRR) is the share of deposits that banks must keep
- The priority sector lending target for domestic commercial banks is
- How many members does the Monetary Policy Committee have?
- Fiscal deficit is
- The current account of the balance of payments includes
- The inflation target set for the RBI is
- Open Market Operations refer to the RBI
- Disguised unemployment in India is found mainly in
- GDP at market prices equals GDP at factor cost
- Which of these is a direct tax?
- Primary deficit equals
- For its inflation target, the RBI uses
Frequently asked questions
What is Indian Economy and Banking in competitive exams?
Economy questions cover the RBI and banking, government finance, inflation and national income.
Which exams ask Indian Economy and Banking questions?
On MockBazaar, Indian Economy and Banking questions appear in RRB Group D, RRB NTPC CBT 1, SSC CGL Tier 1, SSC CGL Tier 2, SSC CHSL Tier 1, UPSC CSE GS 1.
What is the most common mistake in Indian Economy and Banking?
Confusing CRR (cash with the RBI) with SLR (liquid assets kept by the bank).