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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

246 Q 3 Topics Take Test
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Difficulty: All Easy Medium Hard 91–100 of 246
Topics in Bank PO / Clerk / RBI
Q.91 Medium General Awareness
Which bank is the oldest bank in continuous operation in India?
A State Bank of India
B Bank of India
C Punjab National Bank
D Allahabad Bank
Correct Answer:  D. Allahabad Bank
EXPLANATION

Allahabad Bank, established in 1865, is the oldest bank in continuous operation in India and was the first bank founded by Indians.

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Q.92 Medium General Awareness
A bank's Loan-to-Deposit (LTD) ratio is 95%. What does this indicate?
A Strong liquidity position with conservative lending
B Aggressive lending with potential liquidity stress
C Excellent profitability
D Poor asset quality
Correct Answer:  B. Aggressive lending with potential liquidity stress
EXPLANATION

An LTD ratio of 95% indicates the bank is lending aggressively relative to deposits, which may strain liquidity.

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Q.93 Medium General Awareness
What is the mandated percentage of credit disbursement for Micro and Small Enterprises (MSE) under priority sector lending?
A 8%
B 10%
C 12%
D 15%
Correct Answer:  C. 12%
EXPLANATION

RBI mandates that at least 12% of total priority sector lending should go to Micro and Small Enterprises.

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Q.94 Medium General Awareness
What does CASA ratio signify in banking?
A Current Account to Savings Account ratio - measure of deposit mix
B Capital Adequacy Stress Assessment ratio
C Credit Assessment and Sanction Authority
D Compliance and Safety Analysis ratio
Correct Answer:  A. Current Account to Savings Account ratio - measure of deposit mix
EXPLANATION

CASA ratio reflects the proportion of Current Accounts to Savings Accounts, indicating low-cost deposit base quality.

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Q.95 Medium General Awareness
Which of the following is a characteristic of a Certificate of Deposit (CD)?
A It is a demand deposit
B It is a negotiable, fixed-income security issued at a discount
C It offers variable interest rates
D It can be withdrawn without penalty before maturity
Correct Answer:  B. It is a negotiable, fixed-income security issued at a discount
EXPLANATION

CDs are negotiable instruments issued by banks at a discount, sold in the money market, with fixed maturity periods.

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Q.96 Medium General Awareness
As per recent RBI guidelines (2024), what is the threshold loan amount for priority sector lending to agriculture?
A ₹50 lakhs
B ₹75 lakhs
C ₹1 crore
D ₹2 crores
Correct Answer:  A. ₹50 lakhs
EXPLANATION

RBI prescribes priority sector lending to agriculture with a loan limit of ₹50 lakhs for individual farmers.

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Q.97 Medium General Awareness
Which term refers to the difference between the Repo Rate and the Reverse Repo Rate set by RBI?
A Corridor
B Spread
C Liquidity Adjustment Facility (LAF)
D Policy Rate
Correct Answer:  A. Corridor
EXPLANATION

The corridor refers to the band between Repo Rate (upper ceiling) and Reverse Repo Rate (lower floor) for overnight lending.

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Q.98 Medium General Awareness
In data interpretation for banking exams, if a bank's Net Interest Income (NII) increases by 15% but Net Profit decreases by 5%, what could be the likely reason?
A Decrease in operating expenses
B Increase in provisions and contingencies or operating expenses
C Improvement in asset quality
D Increase in advances
Correct Answer:  B. Increase in provisions and contingencies or operating expenses
EXPLANATION

If NII increases but Net Profit decreases, it indicates higher provisions/contingencies or elevated operating expenses offsetting income gains.

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Q.99 Medium General Awareness
Which RBI directive mandates banks to maintain Statutory Liquidity Ratio (SLR) at a minimum of what percentage of NDTL?
A 18%
B 21.5%
C 19.5%
D 20%
Correct Answer:  B. 21.5%
EXPLANATION

SLR is currently maintained at 21.5% of Net Demand and Time Liabilities (NDTL) as per RBI guidelines.

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Q.100 Medium General Awareness
The repo rate as of February 2024 is maintained at what level by RBI's Monetary Policy Committee?
A 5.75%
B 6.5%
C 7.0%
D 6.25%
Correct Answer:  B. 6.5%
EXPLANATION

As per RBI's latest monetary policy stance in 2024, the repo rate stands at 6.5% with a neutral policy stance.

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