Economy and Banking Awareness is the most important GK section for Bank PO and Bank Clerk exams. With 10–15 questions in IBPS PO and SBI PO, a strong grasp of RBI functions, monetary policy and government schemes is non-negotiable.
📊 Bank PO Economy Weightage: 10–15 questions per paper · RBI and monetary policy are most tested · Government schemes launched in the last 2 years are frequently asked
🔑 Most Important Economy Topics for Bank PO
RBI and Monetary Policy — repo rate, reverse repo, CRR, SLR, MSF, base rate, MCLR
Government Schemes — PM Jan Dhan, Mudra, PM Kisan, Ayushman Bharat, Startup India
Banking System — types of banks, NBFC, cooperative banks, RRBs, payment banks
Capital Markets — SEBI, stock exchanges, BSE, NSE, Sensex, Nifty
International Bodies — IMF, World Bank, ADB, WTO, BRICS, G20
Budget and Fiscal Policy — types of deficit, direct and indirect taxes, GST
Q1. The repo rate is the rate at which RBI lends money to whom?
A) Central GovernmentB) State GovernmentsC) Commercial BanksD) Foreign Banks
✅ Answer: C) Commercial Banks — Repo Rate is the rate at which the Reserve Bank of India lends short-term money to commercial banks against government securities.
Q2. Which index measures inflation at the wholesale level in India?
A) CPIB) WPIC) RPID) PPI
✅ Answer: B) WPI — Wholesale Price Index (WPI) measures the average change in prices at the wholesale level. Consumer Price Index (CPI) measures retail inflation and is used by RBI for monetary policy targeting.
Q3. MUDRA Bank was launched under which scheme?
A) Make in IndiaB) Startup IndiaC) Pradhan Mantri Mudra YojanaD) Digital India
✅ Answer: C) Pradhan Mantri Mudra Yojana — MUDRA (Micro Units Development and Refinance Agency) Bank was launched in 2015 under PMMY to provide loans up to ₹10 lakh to non-corporate small businesses.
Q4. The headquarters of the International Monetary Fund (IMF) is in which city?
A) New YorkB) LondonC) GenevaD) Washington D.C.
✅ Answer: D) Washington D.C. — The IMF is headquartered in Washington D.C., USA. It was established in 1944 at the Bretton Woods Conference.
Practice 200+ Bank Economy PYQs Free
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What is the difference between repo rate and reverse repo rate?
Repo Rate is the rate at which RBI lends money to commercial banks (currently ~6.5%). Reverse Repo Rate is the rate at which RBI borrows money from commercial banks (always lower than repo rate). When RBI raises repo rate, borrowing becomes expensive, reducing inflation.
Which economy topics are most important for Bank Clerk exam?
For Bank Clerk, focus on: basic banking terms (repo, CRR, SLR), types of accounts, payment banks and small finance banks, major government schemes (PM Jan Dhan, Mudra, Kisan Credit Card), and headquarters of major banks and financial institutions.
How to prepare Economy GK for Bank PO in 60 days?
Week 1-2: Master RBI and monetary policy tools. Week 3-4: Government schemes launched in last 2 years. Week 5-6: Capital markets, international bodies, and budget terms. Practice 15 economy PYQs daily on GK Capsule throughout.