SSC CGL Economy – Banking in India & the RBI – Level 3 · Challenge

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SSC CGL Economy – Banking in India & the RBI – Level 3 · Challenge – 8 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Statement-based
I. CRR balances earn interest from the RBI.
II. SLR can be kept in cash, gold or approved securities.
III. The MSF rate is above the repo rate.
Which are correct?

Correct Answer: D [II and III only]

Explanation:

CRR earns no interest; II and III are correct.

2.  
A bank has deposits of ₹ 6,000 crore. If the RBI raises the CRR by one percentage point, the amount the bank can lend changes by:

Correct Answer: C [₹ 60 crore less]

Explanation:

1% of 6,000 = ₹ 60 crore more must be kept with the RBI, so lendable funds fall by ₹ 60 crore (e.g.

3.  
A bank's capital is ₹ 900 crore and its risk-weighted assets are ₹ 7,500 crore. Its CRAR is:

Correct Answer: D [12%]

Explanation:

Answer: 12%. 900 ÷ 7,500 × 100 = 12%.

4.  
Gross advances ₹ 20,000 crore, gross NPA ₹ 1,600 crore. The gross NPA ratio is:

Correct Answer: A [8%]

Explanation:

Answer: 8%. 1,600 ÷ 20,000 × 100 = 8%.

5.  
Which statement on RBI Governors (rbi.org.in, October 2026) is correct?

Correct Answer: B [Sanjay Malhotra is the 26th Governor, in office from 11 December 2024]

Explanation:

First Governor Osborne Smith (1935–37); first Indian Governor C D Deshmukh; Manmohan Singh served 1982–85.

6.  
If the RBI wants to inject long-term liquidity without changing the policy rate, the most suitable tool is:

Correct Answer: C [OMO purchase of government securities]

Explanation:

Buying securities pays money into the system; the policy rate is untouched.

7.  
Arrange in orderArrange the corridor rates (7 October 2026) from lowest to highest:
I. MSF II. SDF III. Repo

Correct Answer: B [II, III, I]

Explanation:

SDF 5.25% < repo 5.50% < MSF 5.75%.

8.  
Which of the following can an NBFC do?

Correct Answer: D [give loans to businesses]

Explanation:

NBFCs lend, but cannot take demand deposits, issue cheques or offer DICGC cover.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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