General Awareness practice

Economics Questions with Answers

Economics questions in SSC CGL, CHSL, MTS, RRB NTPC/Group D and bank mains papers cover basic terms and Indian economy facts: banking, monetary policy, taxes, planning, regulators and institutions. Questions are mostly definition or full-form based, with a few on the Five Year Plans. Tip: connect each institution to its job and year of setting up, since examiners often swap the role of two bodies in the options.

Key facts

The Reserve Bank of India was established on 1 April 1935 and is headquartered in Mumbai; it was nationalised in 1949
The repo rate is the rate at which the RBI lends short-term money to commercial banks; the reverse repo is the rate at which it borrows from them
CRR is the share of deposits banks must keep with the RBI; SLR is the share they must keep in liquid assets with themselves
GST came into effect on 1 July 2017
NITI Aayog replaced the Planning Commission on 1 January 2015
The First Five Year Plan (1951-56) followed the Harrod-Domar model; the Second (1956-61) followed the Mahalanobis model and stressed heavy industry
India's financial year runs from 1 April to 31 March
Article 112 of the Constitution requires the annual financial statement (the Union Budget) to be laid before Parliament
SEBI regulates the securities market; NABARD, set up in 1982, is the apex body for agriculture and rural credit
Fourteen major commercial banks were nationalised in 1969
Primary sector is agriculture and allied activity, secondary is industry, and tertiary is services
A mixed economy has both public and private sectors; India follows this model

Worked examples

Q1. The rate at which the RBI lends money to commercial banks is called: (A) Reverse repo rate (B) Repo rate (C) CRR (D) SLR

Reverse repo is the rate at which banks park funds with the RBI, the opposite flow.
CRR and SLR are reserve requirements, not lending rates.
Repo is the lending rate.

Answer: (B) Repo rate

Q2. The Planning Commission was replaced by: (A) Finance Commission (B) NITI Aayog (C) SEBI (D) NABARD

SEBI and NABARD are regulators and a bank, not planning bodies.
The Finance Commission is a constitutional body for dividing taxes.
NITI Aayog took over in 2015.

Answer: (B) NITI Aayog

Q3. The Second Five Year Plan was based on the model of: (A) Harrod-Domar (B) Mahalanobis (C) Gandhian (D) Rolling plan

Harrod-Domar belongs to the first plan.
The second plan stressed the heavy industry model developed by P. C. Mahalanobis.

Answer: (B) Mahalanobis

Shortcuts that save time

For rate questions, remember the direction of money: repo means the bank borrows from the RBI, reverse repo means the RBI borrows from the bank. This avoids the most common swapped-option trap.
Tie each plan to one keyword (first: agriculture, second: heavy industry). If the keyword is not clear, skip the question rather than guess.
Do not mix institutions that sound alike. Write down the job of RBI, SEBI, NABARD and NITI Aayog once and revise it before every test.

Where this appears

SSC CGL Tier-1	General Awareness section
SSC CHSL Tier-1	General Awareness section
SSC MTS	General Awareness section
RRB NTPC CBT-1	General Awareness section
RRB Group D CBT	General Awareness section
Bank PO/Clerk Mains (IBPS, SBI)	General Knowledge & Current Affairs section

Economics

Practice Set

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The child sex ratio (females per 1000 males) in India from 1951 to 2011: (RPF SI CBT-I 2024 (09/12/2024) Shift 1)

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