RBI DEPR 2019

PHASE I

Paper 1 is divided in 3 sections

Section 1
1,2,3 marks
Microeconomics
ICC and Engel curve for Inferior goods
Numericals on cost- calculating- min of AVC
Monopoly question - equilibrium calculation- 3 marks
Calculating elasticity
One numerical on Lerner's Index
Perfect competition equilibrium condition
Conceptual question on AC, AVC and MC diagram
Duopoly question - cournot model
Consumer surplus- 3 marks
Comparative advantage- based numerical- International Trade
Economic Profit
Substitution and Income effect under Hicks and Slutsky

Section 2
1,2,3 marks
Macro and Indian Economy
At what rate India should grow to achieve the $5 trillion target by 2024-25
Higgins model
Match the following - matching the theory with author- like neoclassical associated with Sargent
What bank should keep in mind while investing- (diversification)
IMF projected growth rate in April 2019- Economic Survey
Fiscal deficit of 2018-19- Eco survey
GST Council constituted under section 279(1)
Insolvency resolution claims for 2018-19- 173359 - eco survey
Demographic dividend data-based question from eco survey
Sector exempted from GST- electricity, health and education- eco survey
Bank merger-based question
One numerical on Keynesian model- AD=AS concept- 2 sector, 3 sector or 4 sector
One numerical on Keynesian foreign multiplier
Numerical on Golden rule savings rate - Solow model - 3 marks
Two numericals from NI accounting
One conceptual question on Lewis model
One Numerical on IS-LM (solve r, Y)
One Numerical on govt expenditure multiplier under SKM
Match the following - for micro- like- quasi rent, time series- AK Sen

Section 3
1,2,4 marks - Econometrics and Stats
 Books Preferred: Basic Econometrics by Gujarati- MCQs at the back of the chapter will be helpful
for matrix questions of 4 marks- refer the appendix of gujarati to learn how to solve questions.
Matrix method for regression co-efficient calculation, t value and F value- 4 marks each
Calculation of R-sq. using X and Y data points
Calculation of R from the regression equations (2 variable)
Basic concepts of assumptions of CLRM Effects of Heteroscedasticity, Autocorrelation
calculation of t value
Conceptual questions from Multicollinearity, heteroscedasticity, autocorrelation, time series- chapter 17,
20, 21- lagged values
Index number- laspeyres index
Relationship between R-sq. and Correlation coefficient

PHASE II

Section 1
1. How the tax burden and dead-weight loss changes as per the changes in the elasticity of demand and
supply? Extreme 4 cases of dead weight loss- perfectly inelastic supply and demand, perfectly elastic supply
and demand
2. Mundell Fleming - Monetary and fiscal policy under fully flexible exchange rate with perfect capital and
imperfect capital mobility.
3. Short notes on (any four):
a) Inter and Intra industry trade
b) Ricardian Equivalence
c) Interest rate parity and exchange rate
d) Money multiplier
e) Economic Cooperation
f) Greenfield and brownfield investments
4. Nominal GDP vs interest regulation for monetary policy. Steps taken to improve the effectiveness of
monetary policy
5) Exchange rate intervention

Section 2
6. Steps to be taken to achieve $ 5 trillion economy by 2024-25 (from eco survey)
7. Use of behavioural economics in public policy in India (from eco survey)
8. Short notes on (any four):
a) GST and tax compliance
b) Ease of doing business
c) Bank merger
d) Challenges to financial stability
e) Data as a public good (from eco survey)
9. PSU as a foundation to Indian Economy. And measures to improve its efficiency

10. Impact of agri infra on reducing cost, improving productivity and access to market.

INTERVIEW

Reading good newspaper like Mint will help in the interview

Significance of interaction term in a regression model
Is there a flip side to the increased use of data science, AI, ML in macro-economic forecasting?
Why the central banks discourage expansionary fiscal policy?
What is marginal propensity to consume? What should be the impact of covid on mpc in India?
Basic concepts of time series
What is core inflation? Why a central bank should be interested in core inflation?
What is libor? also read on libor transition
Give a 3-4 min extempore on GST (was in news at the time of interview)
Why should banks invest their limited resources on govt's financial inclusion program.
Financial Stability Dev Council and who are its members?
Should CRAR in India be reduced to 8% in line with the Basel norms?
What is your opinion on Covid bonds in Indian context?
Questions on personal profile like hobbies/extra-curricular, significance of home town, etc.
what is ways and means advances
What is LIBOR
Brexit status
Real Effective Exchange Rate definition
Questions related to job profile
Need for another AQR
Main responsibilities of RBI
Question related to deposit insurance
what are dummy variables
what is financial inclusion, RBI's role
preparing for UPSC?
in which subject do you want to do PhD
what is important solvency or liquidity
Role of microeconomics in Indian economy
Your view on interest on interest waiver and loan moratorium
Horizontal vs vertical integration in a company
What is real effective exchange rate - grilled a lot on the application - gave an imaginary scenario with
numbers and asked to interpret the effect on REER (take two countries instead of multiple, if there is
inflation in India, would competitiveness improve or worsen?)
Are monetary stabilisation and currency stabilization same?
What is dosanomics? Big Mac index?
How does RBI control inflation?
Is MPC relevant?
Need of bad banks
Share market is going too high - Is this reflecting the fundamentals of economy presently- if not then can
SEBI can do something to control this?
Financial inclusion - steps taken, is it successful?
Need for independent regulator for payment systems
Structural and reduced equations
What will you bring to RBI from your work experience
If you step in the shoes of Finance Minister, what 3 steps will you take to revive the economy
why NPA is increasing in Infrastructure sector
If high fiscal deficit- Will we be able to adhere to FRBM Act.
Operation Twist, Taylors Rule, Optimum currency area,
Should RBI become lender of last resort for corporates
why did you choose JNU over DSE
significance of F test and its null hypothesis
MPhil research topic
 US capital market and interest rate premium in India, how does excess liquidity in Indian markets affect
capital flows
Farm Bills
Labour Migration during lockdown, how could have govt helped, areas of intervention upon their return
research area related questions if pursuing any research degree
labor law changes-good/bad. why?
profile based questions-any survey/term paper/independent research from profile, if any
inductive-deductive logic, Principal Component analysis, Taper Tantrum
Sovereign risk vs country risk
What is IV (Instrument Variable?
How to solve endogeneity problem?
How do you see GST collection in next 12 months?
US has recently put India on exchange rate manipulator watchlist. What are parameters considered for such
an action by US?

* THIS COMPILATION OF QUESTIONS IS PREPARED AS A COLLABORATIVE PROJECT OF CANDIDATES WHO CLEARED R.B.I. GRADE B (D.E.P.R.)
EXAM IN 2019 BATCH

** FOR QUESTIONS ASKED IN 2018 EXAM AND FURTHER GUIDANCE, PLEASE REFER TO THE DOCUMENT PREPARED BY CANDIDATES WHO
CLEARED R.B.I. GRADE B (D.E.P.R.) EXAM IN 2018 BATCH (SHARED BELOW)
THIS DOCUMENT IS PREPARED AS A COLLABORATIVE PROJECT OF CANDIDATES
WHO CLEARED R.B.I. GRADE B (D.E.P.R.) EXAM IN 2018 BATCH, AS A GUIDE FOR
ASPIRANTS

PHASE I

Questions Topics Advisable strategy

(1) Question based on Taylor Micro: 1) Standard models 1) Subject from which
Rule. of Oligopoly like questions of maximum
(2) Calculation of Gini Bertrand,Cournot,Stackelb marks were asked is Ecotrix.
Coefficient through erg. So thoroughly cover
integration approach. 2) All Market forms and its Essentials of Econometrics
(3)Matrix approach of Cost and Revenue Curves. by Porter and Gujrati.
Calculating Regression 2) If you have questions of
coefficient.(Gujrati) Macro: 1)IS-LM model other economics exams like
(4)Calculating F Ratio ,including Mundell-Fleming PGT Economics, JNU
through the given table. Model, from Froyen. Entrance exam,which you
(5)IS-LM based questions 2) Money Multiplier and have given or your friends
like calculating Y and Balance sheet of both have then practice from
r(interest rate). Central Bank and a those questions.And if you
(6) Some questions from Commercial Bank. don’t know the particular
current economic events or 3) Money supply and its question then read about
general economics different types- M0, M1, that topic from the book.It
knowledge e.g. Number of M2, M3 and their will of great help for Phase I.
currencies in SDR of IMF, determinants 3) try to solve maximum
major banking reforms at 4) banking reforms and all numericals
time of liberalization in India, recent happenings in
recommended CRAR in India money and banking sector.
by RBI.
(7) Basic Game Theory
questions like calculating
Nash Equilibrium.
(8) Calculate Adjusted R
square.
9) Consequence of
Heteroskedasticity.
10) What does efficient mean
with regard to Regression
coefficient.
11) Calculation of equilibrium
price and quantity in different
market structures.
12) Determination of national
income
13) Numericals related to
multiplier, accelerator,
balanced budget multiplier
14) Numericals on elasticities

Questions
Part 1
1)
What is the impact of
expansionary Monetary and
fiscal policy on the output
and price in case of perfect
capital mobility and fixed
exchange rate - 20 marks
2)
a) Why the LR
Aggregate supply
curve is vertical - 10
marks
b) Using AS and AD
explain the impact of
the following on price
and output - (i) Rise
in Government
expenditure. (ii) Rise
in autonomous
investment (iii) rise in
the wage rate of
employees {4th part
couldnt recall} - 10
marks
3)
Explain the Harris Todaro
growth model. Comment on
its implication in Indian
context
4) Briefly Explain the
following Short notes
(i) Covered Interest Rate
Parity
(ii) Multidimensional poverty
index
(iii)Inflation targeting
framework
(iv)New Development Bank
(BRICS)
5) effects of tariff and non
tariff barrier on trade?
PHASE II [ECONOMICS]
Topics Advisable strategy
International Economics Macroeconomic portion of
Macroeconomics Salvatore should be covered
Growth and Development thoroughly.
Indian Economy
For Growth and
Development economics, I
would suggest to go through
the past years of DEPR
paper, available on website.
Generally they repeat the
questions. The book for this
you can refer is
Development Economics by
Debraj Ray.
Every year, they ask any
one growth or development
model, so read them well
along with its relevance to
our economy.
For Macro, as the questions
asked are mostly basic in
nature, Froyen helps a lot in
this
For Indian Economy portion,
I would suggest current
affairs knowledge
supplemented with
Economic Survey Data &
Budget can help you in
writing good answers. In
RBI, mostly the Indian
Economy questions are
current oriented.
RBI publications might also
help in getting an idea about
the recent trends in Indian
economy.
For particular topics like
services, industry you can
refer to Uma Kapila(Edited
version). You don't need to
cover the whole book.
Three types of non tariff
barrier?

Part 2

1) What are the main

challenges faced by
Agriculture sector in
India - 20 marks

2) Write a note on the

following
i) Small Finance Banks
ii) Ease of Doing Business
iii) Impact of Skill
Development programs on
employment generation
iv) Impact of climate change
on economy
v) Terms of reference of 15th
Finance Commision
vi) Demonetisation impact on
Money Market rates
vii) Payments Bank- 20
marks

3) one question on human

capital
4)Impact of Service led
growth
5)Financial Stability report

INTERVIEW

Questions Topics Advisable strategy

Based on the background of Your Accumulated

candidate, Monetary knowledge of Economics till
Economics, Econometrics, masters or above will help a
about RBI and its functions, lot in the Interview.The
current happenings in Indian panel members cover a very
economy as well as globally. wide area during the
interview. So prepare for it
along with Pre and Mains.
For current happenings in
our economy, follow any of
good newspapers like
Livemint/ The Hindu/ Indian
Express.