SSC CGL Finance – Economic Reforms in India; Money & Banking – Exam-Level Drill

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SSC CGL Finance – Economic Reforms in India; Money & Banking – Exam-Level Drill – 12 questions, subject: Finance & Economics (Tier II Paper III). 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.  
One-line fact recallAt its meeting of 5–7 October 2026, the RBI's MPC changed the policy repo rate to:

Correct Answer: C [5.50% (raised by 25 basis points)]

Explanation:

RBI press release 7-10-2026: repo raised 25 bp to 5.50%; stance 'calibrated tightening'.

2.  
With the repo rate at 5.50%, the SDF and MSF rates (October 2026) were:

Correct Answer: D [SDF 5.25%, MSF 5.75%]

Explanation:

Corridor of ±25 bp around repo; 3.35% is the fixed reverse repo rate.

3.  
A bank borrows ₹ 500 crore overnight from the RBI at the repo rate of 5.50% (365-day year). Interest for one day is about:

Correct Answer: A [₹ 7.53 lakh]

Explanation:

500 crore × 5.5% ÷ 365 = ₹ 0.0753 crore = ₹ 7.53 lakh.

4.  
Which change came into force on 1 April 2026?

Correct Answer: B [The Income-tax Act, 2025 replacing the Income-tax Act, 1961]

Explanation:

PIB 1-4-2026; GST two-slab structure from 22-9-2025; Labour Codes from 21-11-2025; IBC 2016.

5.  
The four Labour Codes made effective from 21 November 2025 rationalise how many existing labour laws?

Correct Answer: C [29]

Explanation:

PIB 21-11-2025: 29 laws into four codes.

6.  
From 22 September 2025, GST has two main rates of:

Correct Answer: B [5% and 18%]

Explanation:

5% (merit) and 18% (standard), plus a 40% special (de-merit) rate; the 12% and 28% slabs were removed (as on 20-10-2026, GST Council / PIB).

7.  
Deposit ₹ 60,000; reserve ratio 8%; the public holds no cash. If banks keep 4% excess reserves in addition, the maximum total deposits become:

Correct Answer: D [₹ 5,00,000]

Explanation:

Effective reserve ratio 12% → 60,000 ÷ 0.12 = 5,00,000.

8.  
Assertion–Reason
A: A rise in the repo rate is expected to reduce inflationary pressure.
R: Costlier borrowing from the RBI raises lending rates, reducing credit and spending.

Correct Answer: C [Both A and R are true and R explains A]

Explanation:

This is the interest-rate channel of monetary transmission.

9.  
Match the followingMatch:
P. First Governor of RBI Q. First Indian Governor of RBI R. Governor of RBI as on October 2026
1. Sanjay Malhotra 2. Sir Osborne Smith 3. Sir C. D. Deshmukh

Correct Answer: A [P-2, Q-3, R-1]

Explanation:

rbi.org.in Governors page: Smith 1935–37; Deshmukh 1943–49; Malhotra (26th) from 11-12-2024.

10.  
CRR 3% and SLR 18% (October 2026). A bank with NDTL ₹ 5,000 crore must hold together (cash with RBI + SLR assets):

Correct Answer: A [₹ 1,050 crore]

Explanation:

3% + 18% = 21% of 5,000 = 1,050.

11.  
One-line fact recallIn the RBI's October 2026 policy, the CPI inflation projection for 2026-27 was:

Correct Answer: C [5.2%]

Explanation:

CPI 5.2%; real GDP growth projection 7.1%.

12.  
Reverse questionTotal deposits created in the system are ₹ 2,25,000 from an initial deposit of ₹ 45,000 (no cash drain). The reserve ratio is:

Correct Answer: D [20%]

Explanation:

Multiplier = 2,25,000/45,000 = 5 → r = 1/5 = 20%.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
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