Clearing JAIIB 2026 IE & IFS is not about studying more it is about studying smart. Over the years, the Indian Economy & Indian Financial System paper has shown clear patterns. Certain topics are repeatedly tested and certain concepts are framed in slightly different ways again and again. If you identify these patterns early, your preparation becomes focused, faster, and more effective.
In this blog, we have provided 50 most repetitive MCQs for JAIIB 2026 IE & IFS, along with details of the most repeated topics from recent exam analysis and a direct link to download the PDF.
Download JAIIB IE & IFS Most Repetitive Questions PDF
In this eBook, we have provided 100 carefully selected JAIIB IE & IFS questions from the topics that are most frequently asked in the exam. These questions are based on previous exam trends and are designed to help you focus on important and high-weightage areas. Each question is provided with the correct answer along with a clear and detailed explanation to help you understand the concept easily. The direct link to download the JAIIB IE & IFS Most Repetitive Questions PDF is given below for quick access.
Download JAIIB IE & IFS Most Repetitive Questions PDF
What are the most repetitive topics in JAIIB IE & IFS based on exam analysis?
Based on some of the previous exam analyses, it has been noted that certain areas consistently dominate the paper. These topics are not just important; they are repeatedly tested in multiple shifts and cycles.
The repetition is usually conceptual, not word-to-word. Questions may be framed differently, but the core concept remains the same. Mastering these areas can significantly increase your score.
| Major Topic | What Gets Repeated Frequently | Type of Questions Asked |
| Monetary Policy | Repo Rate, Reverse Repo, CRR, SLR, Policy Tools | Concept-based MCQs, numerical logic, policy impact questions |
| Functions of RBI | Regulatory powers, monetary control tools | Direct fact-based + application-based questions |
| Banking Structure | Types of Banks, Payment Banks, Small Finance Banks | Statement-based MCQs |
| Financial Markets | Money Market vs Capital Market, G-Secs | Match the following, feature-based questions |
| Inflation & GDP | Types of inflation, GDP calculation methods | Definition + scenario-based questions |
| Basel Norms | Capital adequacy, Basel III norms | Conceptual and compliance-based questions |
| Financial Inclusion | PMJDY, Priority Sector Lending | Scheme-feature questions |
| Regulatory Bodies | RBI, SEBI, IRDAI roles | Authority-function matching questions |
20 JAIIB IE and IFS Questions from the most repetitive topics
- The RBI Governor announces: ‘Despite three consecutive repo rate hikes totalling 150 basis points over the last 9 months, retail lending rates of banks have increased by only 40–50 basis points. This incomplete transmission is a matter of serious concern.’ An economist identifies the following as possible reasons for this weak transmission. Study each reason and identify which ones are VALID explanations for the weak monetary policy transmission:
- 1. Banks have a large proportion of legacy fixed-rate deposits that have not yet repriced upward, keeping their blended cost of funds relatively lower than the marginal rate.
- 2. The banking system is in a surplus liquidity situation — banks have more funds than needed for lending, so they are less dependent on RBI borrowings at the new higher repo rate.
- 3. Competition among banks for market share has discouraged individual banks from raising lending rates aggressively, even when their cost of funds rises.
- 4. Since MCLR (Marginal Cost of Funds based Lending Rate) is reviewed monthly, all floating rate loans have already reset to the new higher rate within 30 days of the repo hike.
- 5. Large corporates with high credit ratings have alternative sources of funding (bonds, ECB, CPs) at competitive rates, and banks are unwilling to lose these clients by raising lending rates sharply.
Which of the reasons are VALID explanations for weak transmission?
- A. 1, 2, 3, and 5 only
- B. 1, 3, and 5 only
- C. 2, 3, 4, and 5 only
- D. All five reasons
Correct Answer: (A)
2. RBI is deliberating on the use of the Bank Rate as a monetary policy tool. A policy researcher lists the following facts about the Bank Rate and contrasts it with the Repo Rate. Study the statements and identify which are CORRECTLY stated:
- 1. The Bank Rate is the rate at which RBI is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase — it is governed under Section 49 of the RBI Act, 1934.
- 2. The Bank Rate is currently aligned with the MSF (Marginal Standing Facility) rate and is used primarily as a penal rate for banks that fail to maintain CRR or SLR requirements.
- 3. Unlike the Repo Rate (which involves a collateral-backed repurchase agreement), the Bank Rate represents an outright purchase/discount of eligible instruments by RBI — there is no repurchase agreement.
- 4. The Repo Rate is a more flexible and widely used tool than the Bank Rate because it allows RBI to conduct daily fine-tuning of liquidity through the LAF (Liquidity Adjustment Facility).
- 5. Both the Bank Rate and Repo Rate are announced during the bi-monthly MPC meetings and are changed simultaneously by the same quantum whenever the MPC revises the policy rate.
- A. 1, 2, 3, and 4 only
- B. 1, 3, and 4 only
- C. 2, 3, 4, and 5 only
- D. All five statements
Correct Answer: (A)
3. The Quantity Theory of Money (QTM) is expressed as MV = PT (or MV = PY in modern form). A monetary economist applies this theory to analyse India’s inflation scenario:
Given data: Money Supply (M) grows at 12% per year. Velocity of Money (V) is assumed constant. Real GDP (Y) grows at 7% per year.
The economist makes the following predictions and statements:
- 1. Based on QTM (MV = PY), inflation should be approximately 5% (12% money growth minus 7% real GDP growth).
- 2. If RBI reduces money supply growth to 4%, inflation should reduce to approximately -3% (deflation), all else equal.
- 3. The QTM assumes that the velocity of money is constant and real output is determined by supply-side factors (independent of money supply) — this is known as the ‘Classical Dichotomy.’
- 4. Keynesians challenge QTM by arguing that velocity is NOT constant — it varies with interest rates, expectations, and the state of the economy, making the money-inflation link unstable.
- 5. In the short run, an increase in money supply may increase REAL output rather than just prices, especially when the economy is operating below potential — a view consistent with QTM in the short run.
Which statements are CORRECT?
- A. 1, 3, and 4 only
- B. 1, 2, 3, and 4 only
- C. 1, 2, and 4 only
- D. All five statements
Correct Answer: (B)
4. The ‘Effective Lower Bound’ (ELB) of interest rates has become relevant for many central banks globally. An advanced monetary policy analyst explains this concept and its implications. Evaluate the following statements:
- 1. The Effective Lower Bound (ELB) is approximately 0% (not -∞) because below a certain negative rate, economic agents would prefer holding physical cash (which pays 0% return) rather than bank deposits, limiting how negative rates can go.
- 2. Some European central banks and the Bank of Japan have successfully implemented Negative Interest Rate Policy (NIRP) — charging commercial banks for excess reserves — but none have gone below -1% as the ELB is typically around -0.5% to -1%.
- 3. When conventional monetary policy (interest rate cuts) is constrained by the ELB, central banks can use ‘unconventional tools’ such as QE, forward guidance, and yield curve control as substitutes.
- 4. The concept of ‘Helicopter Money’ — direct monetary transfers to the public — is equivalent to a combination of monetary and fiscal policy and can be effective even when interest rates hit the ELB.
- 5. India is unlikely to face the ELB problem in the near future because its neutral real interest rate is significantly above zero, giving the RBI ample room to cut rates if needed.
Which statements are CORRECT?
- A. 1, 2, 3, 4, and 5
- B. 1, 3, 4, and 5 only
- C. 1, 2, and 3 only
- D. 2, 3, and 4 only
Correct Answer: (A)
5. RBI has a complex relationship with the government in managing fiscal policy. The ‘Fiscal Dominance’ theory poses a risk to monetary policy independence. An RBI official explains this and related concepts:
- 1. ‘Fiscal Dominance’ occurs when the government’s large borrowing requirements force the central bank to keep interest rates artificially low (to reduce debt servicing costs), even when inflation warrants rate hikes — compromising monetary policy independence.
- 2. India’s FRBM (Fiscal Responsibility and Budget Management) Act, 2003 was enacted partly to prevent fiscal dominance by limiting government deficits and thereby reducing pressure on RBI to monetise the deficit.
- 3. ‘Deficit Monetisation’ occurs when RBI directly finances the government’s fiscal deficit by purchasing government bonds at primary auctions — effectively creating new money to fund government spending.
- 4. Under the present framework, RBI is legally prohibited from participating in primary auctions of government securities and can only buy G-Secs in the secondary market through OMOs.
- 5. The Ways and Means Advances (WMA) facility — through which RBI provides short-term funds to the government to bridge cash flow mismatches — represents a form of deficit monetisation if not repaid within the stipulated period.
Which statements are CORRECT?
- A. 1, 2, and 3 only
- B. 1, 3, and 5 only
- C. 1, 2, 3, and 5 only
- D. All five statements
Correct Answer: (A)
6. Study the following numerical scenario on money supply determination:
Data: Currency with Public (C) = ₹18,000 crore. Deposits with Banks (D) = ₹72,000 crore. Required Reserves (RR) = ₹7,200 crore. Excess Reserves (ER) = ₹1,800 crore.
A bank economist calculates various monetary aggregates and ratios:
- 1. Reserve Money (M0) = Currency with Public + Total Reserves = 18,000 + 7,200 + 1,800 = ₹27,000 crore.
- 2. Narrow Money (M1) = Currency with Public + Demand Deposits = 18,000 + 72,000 = ₹90,000 crore (assuming all deposits are demand deposits).
- 3. The Required Reserve Ratio (r) = RR / D = 7,200 / 72,000 = 10%.
- 4. The Currency Deposit Ratio (c) = C / D = 18,000 / 72,000 = 0.25.
- 5. The Money Multiplier = (1 + c) / (c + r + e) where e = excess reserve ratio = ER/D = 1,800/72,000 = 0.025. Therefore multiplier = 1.25 / (0.25 + 0.10 + 0.025) = 1.25 / 0.375 = 3.33.
Which of the above calculations are CORRECT?
- A. 1, 2, 3, 4, and 5
- B. 1, 3, 4, and 5 only
- C. 2, 3, and 4 only
- D. 1, 2, and 5 only
Correct Answer: (A)
7. The term ‘Neutral Real Interest Rate’ (also called r-star or r*) is a key concept in modern central banking. A research paper on RBI’s monetary policy framework explains r* and its policy implications:
- 1. The Neutral Real Interest Rate (r*) is the real interest rate consistent with the economy operating at its potential output with stable inflation — neither stimulating nor restraining the economy.
- 2. If the actual real policy rate (Repo Rate minus inflation) is ABOVE r*, monetary policy is contractionary; if BELOW r*, policy is expansionary — regardless of the absolute level of the policy rate.
- 3. r* is an observable, precisely measurable variable — RBI can directly calculate it from market data and use it as a precise anchor for policy decisions.
- 4. A decline in r* over time (as seen in many developed economies) implies that central banks need a lower policy rate to achieve a neutral monetary stance, and the ELB risk increases.
- 5. In India, the neutral real interest rate is estimated to be positive (around 0.8% to 1.5%), meaning RBI’s actual real rate being positive does not automatically imply a restrictive monetary stance.
Which statements are CORRECT?
- A. 1, 2, 4, and 5 only
- B. 1, 2, and 5 only
- C. 1, 3, 4, and 5 only
- D. All five statements
Correct Answer: (A)
8. Consider the following scenario regarding the impact of monetary policy on the exchange rate and the external sector:
RBI hikes the repo rate by 50 basis points while the US Federal Reserve simultaneously cuts rates by 25 basis points. An international economics expert analyses the impact:
- 1. The interest rate differential between India and the US widens in India’s favour — this makes Indian rupee-denominated assets more attractive, leading to capital inflows into India.
- 2. Capital inflows will tend to APPRECIATE the Indian Rupee against the US Dollar, improving India’s purchasing power for imports.
- 3. An appreciating rupee makes Indian exports more expensive in global markets (in dollar terms), which may hurt India’s export competitiveness.
- 4. The appreciated rupee will also reduce import costs (in rupee terms), which can help reduce imported inflation in India — partially supporting RBI’s inflation-control objective.
- 5. If RBI intervenes in the foreign exchange market to prevent excessive rupee appreciation (by buying dollars), it injects rupees into the system, partially offsetting the tightening effect of the rate hike.
Which of the above impacts are CORRECTLY described?
- A. All five impacts
- B. 1, 2, 3, and 4 only
- C. 1, 3, 4, and 5 only
- D. 2, 3, 4, and 5 only
Correct Answer: (A)
9. RBI’s Annual Report and other publications provide critical insights into India’s monetary and banking landscape. A JAIIB student is reviewing RBI’s key publications and their regulatory functions. Evaluate the following:
- 1. The RBI Annual Report is required to be presented to the Central Government within 3 months of the close of the financial year and covers the working and operations of RBI.
- 2. The ‘Report on Trend and Progress of Banking in India’ published by RBI annually covers the performance of the entire banking and financial sector, not just RBI’s own operations.
- 3. The ‘Monetary Policy Report’ published by RBI bi-annually (along with major MPC meetings) provides projections for CPI inflation and GDP growth with uncertainty bands for the next 12 months.
- 4. The ‘State of the Economy’ article in the RBI Bulletin is a monthly publication prepared by RBI staff that provides forward-looking analysis of macroeconomic conditions.
- 5. RBI’s ‘Currency and Finance Report’ is an annual thematic publication on a specific topic of macroeconomic importance it is not a routine statistical publication.
Which statements are CORRECT?
- A. 1, 2, 3, and 5 only
- B. 1, 2, 4, and 5 only
- C. 2, 3, 4, and 5 only
- D. All five statements
Correct Answer: (D)
10. RBI has significant powers over the appointment and removal of top management in banks. A banking law expert explains RBI’s human resource-related regulatory powers. Evaluate:
- 1. Under Section 10BB of the Banking Regulation Act, the appointment, re-appointment, or termination of the MD and CEO of a private sector bank requires prior approval of RBI.
- 2. RBI can issue ‘Fit and Proper’ criteria for Directors of banks — disqualified directors can be removed by RBI even if they were appointed by shareholders.
- 3. RBI has the power under Section 36AA of the BR Act to remove any chairman, director, chief executive officer, or other officer of a bank if it believes that person’s continuance is prejudicial to the interests of depositors.
- 4. In the case of Public Sector Banks (PSBs), RBI has the same direct appointment and removal powers over their top management as it does for private sector banks.
- 5. The ‘Governance in Commercial Banks’ guidelines issued by RBI (2021) limit the tenure of MD and CEO of private sector banks to a maximum of 15 years, after which they must have a minimum cooling-off period.
Which statements are CORRECT?
- A. 1, 2, 3, and 5 only
- B. 1, 2, and 3 only
- C. 2, 3, 4, and 5 only
- D. All five statements
Correct Answer: (A)
Q11. Which of the following is NOT a function of the Reserve Bank of India?
- A. Issuing currency notes
- B. Acting as banker to the government
- C. Accepting retail deposits from the public
- D. Regulating credit in the economy
Answer: (C)
Q12. The Statutory Liquidity Ratio (SLR) requires banks to maintain a minimum percentage of their NDTL in which of the following forms?
- A. Cash only
- B. Gold or approved securities or cash
- C. Government bonds only
- D. Foreign exchange reserves
Answer: (B)
Q13. Which of the following best describes ‘Moral Hazard’ in the context of banking
and insurance?
- A. The risk that a borrower misrepresents their financial status before getting a loan
- B. The tendency to take greater risks when protected from the consequences of those risks
- C. The risk of a bank failing due to bad loans
- D. The risk that an insurance company will not honour a claim
Answer: (B)
Q14. Which of the following committees recommended the establishment of the Asset
Reconstruction Companies (ARCs) in India?
- A. Narasimham Committee I (1991)
- B. Narasimham Committee II (1998)
- C. Raghuram Rajan Committee (2009)
- D. Verma Committee (1999)
Answer: (B)
Q15. Under the Insolvency and Bankruptcy Code (IBC), 2016, the maximum time limit for completing the Corporate Insolvency Resolution Process (CIRP) including litigation is:
- A. 180 days
- B. 270 days
- C. 330 days
- D. 365 days
Answer: (C)
Q16. The National Electronic Funds Transfer (NEFT) system in India operates:
- A. Only on working days in fixed batch cycles
- B. 24×7, 365 days in half-hourly batches
- C. Only on government working days
- D. Only during banking hours on weekdays
Answer: (B)
Q17. Which of the following best describes ‘Participatory Notes (P-Notes)’ in the Indian
capital market?
- A. Notes issued by RBI to participating banks
- B. Instruments issued by registered FPIs to overseas investors who wish to invest in Indian
- securities without registering directly
- C. Bonds issued by listed companies to foreign entities
- D. Special notes issued by SEBI for primary market transactions
Answer: (B)
Q18. Which of the following correctly describes a ‘Reverse Mortgage’ product?
- A. A mortgage where the borrower repays in reverse (balloon payment at beginning)
- B. A loan where a senior citizen pledges residential property to receive periodic payments
- from the lender
- C. A product where the lender repays the borrower for home upgrades
- D. A housing loan with floating interest that adjusts periodically
Answer: (B)
Q19. The concept of ‘Priority Sector Lending’ (PSL) in India requires domestic scheduled commercial banks to lend what percentage of ANBC (Adjusted Net Bank Credit) to priority sectors?
- A. 30%
- B. 35%
- C. 40%
- D. 45%
Answer: (C)
Q20. Which of the following is correct regarding the Monetary Policy Committee
(MPC) of India?
- A. It consists of 5 members, all from RBI
- B. It consists of 6 members 3 from RBI and 3 external members appointed by the
- Government
- C. It is chaired by the Finance Minister of India
- D. It meets once a year to set the repo rate
Answer: (B)
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What is the format of repetitive questions in JAIIB IE & IFS?
The format of questions has remained largely consistent, but the presentation style has slightly evolved. Instead of direct one-line questions, more conceptual and statement-based formats are now common.
- Single concept MCQs (Definition-based)
- Statement I & II type questions
- Match the following
- True/False with explanation
- Scenario-based application questions
- Policy impact questions (What happens if Repo Rate increases?)
- Numerical logic-based (CRR/SLR calculation impact)
There is no drastic structural change in the exam pattern. However, questions are becoming more analytical rather than purely factual. Earlier, questions were direct. Now, they test understanding and application.
Has the way questions are asked changed for JAIIB IE & IFS paper?
Yes slightly. The syllabus remains the same, but the framing style has evolved.
- Earlier, direct definition-based questions were common, whereas now concept-application questions are increasing.
- Earlier, simple recall-based MCQs dominated, whereas now statement-based and elimination-based questions are more common.
- Earlier, questions mainly tested memory, whereas now they test conceptual clarity and understanding.
| Earlier Trend | Current Trend |
| Direct fact-based | Concept + application-based |
| Simple one-line questions | Multi-statement format |
| Memory-focused | Understanding-focused |
| Limited analytical twist | More logical reasoning involved |
Also Check:
What topics are covered in the JAIIB IE&IFS syllabus 2026?
The IE&IFS syllabus aims to provide banking professionals with a thorough understanding of economic principles and the structure of the Indian financial system. This paper is divided into four modules:
- Module A – Indian Economic Architecture
- Module B – Economic Concept Related to Banking
- Module C – Indian Financial Architecture
- Module D – Financial Products and Services
Also Check,
FAQs
Monetary policy, RBI functions, financial markets, inflation, GDP, and banking regulations are repeatedly tested.
No, the concept is repeated but the framing of the question may change.
Yes, questions related to Repo Rate, CRR, and SLR are frequently asked.
Yes, statement I & II and elimination-based questions are common.
They help significantly, but conceptual clarity is also important.
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