Attempt CAIIB Central Banking PYP Quiz and Download Free PDF

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Preparing for the CAIIB Central Banking elective paper requires more than just theory; it needs a clear understanding of how central banks work in real economies and how monetary policy impacts the banking system. The CAIIB 2026 elective exam is expected to be held on 21st June 2026 (May–June session) and 27th December 2026 (Nov–Dec session), so candidates should start their preparation early.

Since the exam is highly application-based and case-study oriented, practising memory-based questions is one of the most effective ways to improve understanding, accuracy, and overall exam performance.

Download CAIIB Central Banking Previous Year Papers

Boost your CAIIB Central Banking 2026 preparation by focusing on questions asked from CAIIB Central Banking Previous Year Papers. The direct download link is given below:

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CAIIB Central Banking Previous Year PaperDownload Free PDF

Attempt CAIIB Central Banking Previous Year Paper Quiz

Check your preparation level with our CAIIB Central Banking Previous Year Paper Quiz designed especially for banking professionals preparing for the Central Banking elective paper.

CAIIB Central Banking PYP Practice Quiz Score: 0.00

1. What is the minimum Net Owned Fund (NOF) requirement for a Standalone Primary Dealer (SPD) as per RBI guidelines?

2. What is the prescribed success ratio (minimum bidding commitment) for Primary Dealers in Treasury Bills auctions?

3. What is the minimum Net Owned Fund (NOF) required for banks acting as Primary Dealers?

4. What is the minimum success ratio that Primary Dealers must achieve when they commit to half-yearly Cash Management Bills auctions?

5. The Federal Open Market Committee (FOMC), which sets US monetary policy, consists of how many members?

6. Which of the following best describes the structure of the Federal Reserve System of the United States?

7. Which central bank is popularly known as the ‘Old Lady of Threadneedle Street’?

8. In which year was the Bank of England nationalized?

9. In the CAMELS rating model used for bank supervision, what does the letter ‘C’ stand for?

10. What does the letter ‘A’ represent in the CAMELS model of bank supervision?

11. In the CAMELS supervisory framework, ‘M’ evaluates which aspect of a bank?

12. What does ‘E’ stand for in the CAMELS rating framework used by bank regulators?

13. In the CAMELS model, which parameter assesses a bank’s ability to meet its short-term obligations?

14. What does the letter ‘S’ in the CAMELS rating model signify?

15. As per the RBI’s Scale-Based Regulation framework for NBFCs, how many layers are there in the NBFC structure?

16. Which layer of NBFCs under the RBI’s Scale-Based Regulation (SBR) framework has the least compliance burden?

17. In RBI’s Scale-Based Regulation for NBFCs, while determining the Upper Layer NBFCs, what weightage is given to Quantitative and Qualitative factors respectively?

18. Which layer of NBFCs in RBI’s SBR framework is generally maintained as empty under normal circumstances?

19. How many pillars does the Basel II framework rest on?

20. Which Pillar of Basel II norms deals with the Minimum Capital Requirements for banks?

21. Which Pillar of Basel II promotes transparency and proper disclosures through market discipline?

22. Under Basel II’s Pillar 1, which of the following is NOT one of the three main risks banks are required to hold capital against?

23. Which Pillar of Basel II empowers supervisory authorities to review a bank’s internal assessment of capital adequacy?

24. The Phillips Curve establishes a relationship between which two macroeconomic variables?

25. What type of relationship does the Phillips Curve show between inflation and unemployment?

26. The Phillips Curve trade-off between inflation and unemployment is primarily observed in which time horizon?

27. The concept of Money Multiplier is most directly related to which economic concept?

28. The Monetarist Theory is also known by which other name?

29. According to Monetarist Theory (Friedman Theory), if the output of an economy increases by 10%, by how much should the money supply ideally increase to keep inflation at zero?

30. Which measure of money supply is also referred to as ‘Reserve Money’ or ‘High-Powered Money’ in India?

31. Which measure of money supply includes currency with the public plus demand deposits with banks plus other deposits with RBI?

32. M2 as a measure of money supply is obtained by adding which component to M1?

33. Which of the following is the broadest measure of money supply in India?

34. The Liquidity Adjustment Facility (LAF) is a monetary policy tool used by the RBI primarily for what purpose?

35. How is the Capital Adequacy Ratio (CAR) calculated?

36. As per Basel III norms (adopted by RBI), what is the minimum Capital Adequacy Ratio (CAR / CRAR) that banks in India must maintain?

37. The Financial Inclusion Index (FI-Index) published by the RBI is a composite measure of which aspect?

38. Business Correspondents (BCs) in India’s financial inclusion framework primarily serve what function?

39. How does a Business Facilitator (BF) differ from a Business Correspondent (BC) in the context of financial inclusion?

40. The Integrated Ombudsman Scheme, 2021 launched by RBI follows which principle in terms of complaint filing?

41. In the context of International Investment Position (IIP), a country is called a ‘Net Creditor’ when:

42. A country is described as a ‘Net Debtor’ in its International Investment Position (IIP) when:

43. The International Investment Position (IIP) of a country is a statistical statement that records:

44. Who is the Chairman of the 16th Finance Commission of India?

45. Who was the Chairman of the 15th Finance Commission of India?

46. A newly registered NBFC with small asset size, limited leverage, and no systemic risk characteristics would most likely be placed in which layer under RBI’s Scale-Based Regulation?

47. A Standalone Primary Dealer (SPD) participated in a Treasury Bill auction and committed to bid for ₹200 crore worth of T-Bills. What is the minimum amount (in crore) it must win to meet its success ratio obligation?

48. A bank has Total Capital Funds of ₹500 crore and Risk-Weighted Assets of ₹5000 crore. What is its Capital Adequacy Ratio (CAR)?

49. An economy currently has a monetary base (M0) of ₹10 lakh crore. If the money multiplier is 5, what will be the broad money supply (M3)?

50. Country X is experiencing high unemployment and low inflation. According to the Phillips Curve, what policy action should ideally help reduce unemployment?

Quiz Summary

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Why is the CAIIB Central Banking PYP quiz important for preparation?

The CAIIB Central Banking paper is highly conceptual and focuses on real-world banking systems and policy frameworks. Practising Previous Year Papers helps candidates understand how questions are framed from global institutions and RBI guidelines.

Benefit AreaWhat You Gain
Concept clarityUnderstand central banking systems easily
Exam patternLearn repeated question styles
Speed & accuracyImprove time management
Case study practiceHandle real exam scenarios
Confidence buildingReduce exam pressure

Which are the most important topics asked in the Central Banking paper?

The Central Banking paper mainly focuses on how financial systems are regulated and how money flows in the economy. Key institutions like the Reserve Bank of India Reserve Bank of India and the Federal Reserve System Federal Reserve System play a major role in exam questions. Topics are designed to test understanding of monetary policy, banking supervision, and global financial stability.

TopicKey Details
Primary Dealers Case StudyRole in government securities market
US Reserve SystemStructure and functions
Federal Reserve StructureBoard, regional banks, governance
Old Lady Threadneedle StreetNickname of Bank of England
CAMEL ModelBanking supervision framework
NBFL LayersBanking structure classification
BMUTConcept-based regulatory topic
RBI GuidelinesMonetary and credit policies
FOMC (12 members)Monetary policy decision body
16th Finance CommissionFiscal federal structure
Basel NormsCapital adequacy and risk rules
CSMCredit and monetary system
Phillips CurveInflation vs unemployment
Money MultiplierCredit creation concept
Monetarist TheoryMoney supply impact on economy
Measures of Money SupplyM0, M1, M2, M3 concepts

Which global central banking concepts are frequently repeated in exams?

Global central banking concepts are a very important part of the CAIIB Central Banking paper. Questions often come from international institutions and monetary frameworks used across economies. These topics help candidates understand how policy decisions are made globally and how they impact Indian banking systems.

ConceptFocus Area
Federal Reserve SystemUS monetary policy structure
FOMCInterest rate decisions
Basel Committee NormsBanking regulation standards
Phillips CurveInflation-unemployment relationship
Monetarist TheoryMoney supply control
Money MultiplierCredit expansion mechanism
Bank of EnglandOld central banking system
RBI FrameworkIndia’s monetary control system

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FAQs

1. Why should I attempt CAIIB Central Banking PYP quizzes?

They help you understand exam patterns and improve accuracy through practice of real exam-level questions.

2. When will the CAIIB 2026 exams be conducted?

The exams are expected on 21st June 2026 and 27th December 2026.

3. What is the difficulty level of the Central Banking exam?

The exam is generally rated as moderate with conceptual and case-study-based questions.

4. What type of questions are asked in this paper?

Most questions are application-based and case-study oriented.

5. Which topics are most frequently asked?

Topics like Basel norms, monetary policy tools, and money supply concepts are commonly asked.