Economy, Banking and Finance Abbreviations

Attempt the quiz above first, then review every question with its correct answer and a short explanation below.

1. Q1.What is the full form of GDP?

   • A.Gross Domestic Profit
   • B.General Domestic Product
   • C.Gross Domestic Product✓ Correct Answer
   • D.Gross Development Product

   Explanation: GDP is the total market value of final goods and services produced within a country in a year.

2. Q2.What is the full form of RBI?

   • A.Reserve Bank of India✓ Correct Answer
   • B.Regional Bank of India
   • C.Rural Bank of India
   • D.Reserve Board of India

   Explanation: The RBI, India's central bank, was established on 1 April 1935.

3. Q3.What is the full form of ATM?

   • A.Automated Teller Machine✓ Correct Answer
   • B.Any Time Money
   • C.Automatic Transfer Machine
   • D.Authorised Teller Module

   Explanation: An ATM lets customers withdraw cash and perform banking transactions without a teller.

4. Q4.What is the full form of PAN, the identifier issued by the Income Tax Department?

   • A.Personal Account Number
   • B.Primary Assessment Number
   • C.Permanent Account Number✓ Correct Answer
   • D.Permanent Authorisation Number

   Explanation: PAN is a ten-character alphanumeric identifier issued by the Income Tax Department.

5. Q5.What is the full form of GST?

   • A.General Sales Tax
   • B.Government Service Tax
   • C.Goods and Sales Tariff
   • D.Goods and Services Tax✓ Correct Answer

   Explanation: GST was introduced in India on 1 July 2017 through the 101st Constitutional Amendment.

6. Q6.What is the full form of UPI, the instant payment system developed by NPCI?

   • A.Universal Payment Instrument
   • B.Unified Personal Identity
   • C.United Payments Index
   • D.Unified Payments Interface✓ Correct Answer

   Explanation: UPI lets users transfer money instantly between bank accounts using a mobile app; it was launched in 2016.

7. Q7.What is the full form of NEFT?

   • A.National Electronic Fund Transaction
   • B.National Electronic Funds Transfer✓ Correct Answer
   • C.New Electronic Funds Transfer
   • D.National Easy Funds Transfer

   Explanation: NEFT is a nationwide system for one-to-one electronic fund transfers between bank accounts.

8. Q8.What is the full form of RTGS?

   • A.Rapid Transfer Gross System
   • B.Real Time Gross Settlement✓ Correct Answer
   • C.Real Time Guaranteed Settlement
   • D.Regulated Transfer of Gross Savings

   Explanation: RTGS settles large-value payments continuously in real time, transaction by transaction.

9. Q9.What is the full form of IMPS?

   • A.Immediate Payment Service✓ Correct Answer
   • B.Instant Money Payment System
   • C.Internet Mobile Payment Service
   • D.Integrated Mobile Payment System

   Explanation: IMPS provides instant interbank electronic fund transfer round the clock, including holidays.

10. Q10.What is the full form of NPA in banking?

    • A.Net Profit Account
    • B.Non-Payable Advance
    • C.Non-Performing Asset✓ Correct Answer
    • D.National Private Asset

    Explanation: A loan becomes an NPA when interest or principal remains overdue for more than 90 days.

11. Q11.What is the full form of FDI?

    • A.Foreign Deposit Income
    • B.Federal Direct Investment
    • C.Fixed Deposit Interest
    • D.Foreign Direct Investment✓ Correct Answer

    Explanation: FDI is investment by a foreign entity that gains a lasting interest and control in a domestic enterprise.

12. Q12.What is the full form of SEBI, the regulator of the securities market?

    • A.Stock Exchange Bank of India
    • B.Securities and Exchange Board of India✓ Correct Answer
    • C.Securities and Equity Board of India
    • D.Share and Exchange Bureau of India

    Explanation: SEBI was set up in 1988 and given statutory powers by the SEBI Act, 1992.

13. Q13.What is the full form of NABARD?

    • A.National Bank for Agricultural Reforms and Development
    • B.National Bank for Agriculture and Rural Development✓ Correct Answer
    • C.National Agriculture and Rural Bank of Development
    • D.Nationalised Bank for Agriculture and Rural Deposits

    Explanation: NABARD was established on 12 July 1982 as the apex development bank for agriculture and rural development.

14. Q14.What is the full form of CRR, a monetary policy tool of the RBI?

    • A.Cash Reserve Ratio✓ Correct Answer
    • B.Credit Reserve Ratio
    • C.Cash Recovery Rate
    • D.Capital Reserve Requirement

    Explanation: CRR is the share of a bank's deposits that must be kept as cash with the RBI.

15. Q15.What is the full form of SLR in banking?

    • A.Standard Lending Rate
    • B.Secured Loan Ratio
    • C.Statutory Liquidity Ratio✓ Correct Answer
    • D.Statutory Lending Requirement

    Explanation: SLR is the share of net demand and time liabilities that banks must hold in liquid assets such as gold and government securities.

16. Q16.What is the full form of MSME?

    • A.Major, Small and Medium Enterprises
    • B.Micro, Smart and Medium Enterprises
    • C.Manufacturing, Services and Medium Enterprises
    • D.Micro, Small and Medium Enterprises✓ Correct Answer

    Explanation: The MSME sector is governed by the MSMED Act, 2006 and is a major source of employment.

17. Q17.What is the full form of IBC, the 2016 law on corporate insolvency?

    • A.Indian Banking Code
    • B.Insolvency and Banking Commission
    • C.Investment and Bankruptcy Code
    • D.Insolvency and Bankruptcy Code✓ Correct Answer

    Explanation: The Insolvency and Bankruptcy Code, 2016 provides a time-bound process for resolving insolvency of companies and individuals.

18. Q18.What is the full form of SIDBI?

    • A.State Industries Development Bank of India
    • B.Small Investment and Deposit Bank of India
    • C.Small Industries Development Bank of India✓ Correct Answer
    • D.Social Industries Development Bank of India

    Explanation: SIDBI, set up in 1990, is the principal financial institution for promoting and financing small-scale industries.

19. Q19.What is the full form of NPCI, the umbrella organisation for retail payments in India?

    • A.National Payment Council of India
    • B.National Payments Corporation of India✓ Correct Answer
    • C.National Postal Credit Institute
    • D.Nationalised Payments and Credit of India

    Explanation: NPCI was set up in 2008 and operates UPI, RuPay and IMPS.

20. Q20.What is the full form of ECB, a route for Indian companies to borrow abroad?

    • A.External Commercial Borrowing✓ Correct Answer
    • B.Export Credit Bank
    • C.Economic Capital Budget
    • D.Equity and Credit Balance

    Explanation: External Commercial Borrowings are loans raised by Indian entities from non-resident lenders.