Indian Economy & Banking Awareness

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Indian Economy & Banking Awareness — solved practice questions

8 SSC / Banking General Awareness questions with step-by-step solutions. Attempt each, then reveal the answer.

1. Q1easy

   In which year was the Reserve Bank of India (RBI) established?

   • A1935
   • B1947
   • C1950
   • D1969
   Show answer & solution

   Correct answer: (A) 1935

   The Reserve Bank of India was established on 1 April 1935 under the RBI Act, 1934.

2. Q2easy

   Where is the headquarters of the Reserve Bank of India located?

   • ANew Delhi
   • BKolkata
   • CMumbai
   • DChennai
   Show answer & solution

   Correct answer: (C) Mumbai

   The RBI's central office has been located in Mumbai since 1937.

3. Q3medium

   Which is the largest public sector bank in India?

   • APunjab National Bank
   • BBank of Baroda
   • CCanara Bank
   • DState Bank of India
   Show answer & solution

   Correct answer: (D) State Bank of India

   The State Bank of India (SBI), formed in 1955, is the largest public sector bank in India by assets and branches.

4. Q4medium

   NABARD, the apex body for agriculture and rural credit, was established in which year?

   • A1969
   • B1975
   • C1982
   • D1991
   Show answer & solution

   Correct answer: (C) 1982

   The National Bank for Agriculture and Rural Development (NABARD) was set up on 12 July 1982.

5. Q5easy

   What is the financial (fiscal) year followed in India?

   • AJanuary to December
   • BApril to March
   • CJuly to June
   • DOctober to September
   Show answer & solution

   Correct answer: (B) April to March

   India's financial year runs from 1 April to 31 March.

6. Q6medium

   Which body is the regulator of the securities and stock market in India?

   • ASEBI
   • BRBI
   • CIRDAI
   • DNABARD
   Show answer & solution

   Correct answer: (A) SEBI

   The Securities and Exchange Board of India (SEBI) regulates the securities market; it gained statutory status in 1992.

7. Q7hard

   Who was the first Indian Governor of the Reserve Bank of India?

   • AOsborne Smith
   • BC. D. Deshmukh
   • CBenegal Rama Rau
   • DC. Rangarajan
   Show answer & solution

   Correct answer: (B) C. D. Deshmukh

   C. D. Deshmukh became the first Indian Governor of the RBI in 1943; Sir Osborne Smith was the first Governor overall.

8. Q8easy

   The term 'repo rate' refers to the rate at which:

   • ABanks pay interest on savings deposits
   • BBanks lend money to customers
   • CThe government borrows from the public
   • DThe RBI lends money to commercial banks
   Show answer & solution

   Correct answer: (D) The RBI lends money to commercial banks

   The repo rate is the rate at which the RBI lends short-term funds to commercial banks against securities.

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