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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 131–140 of 246
Topics in Bank PO / Clerk / RBI
Q.131 Medium General Awareness
As per RBI's 2024 guidelines, what is the maximum Loan-to-Value (LTV) ratio for housing loans?
A 70%
B 80%
C 90%
D 85%
Correct Answer:  B. 80%
EXPLANATION

RBI guidelines specify 80% as the maximum LTV ratio for housing loans to manage systemic risk.

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Q.132 Medium General Awareness
What does CASA ratio indicate in banking?
A Cost to Assets and Savings Accounts
B Current and Savings Accounts as a proportion of total deposits
C Capital and Subordinated debt Accounts
D Compliance and Safety Account Standards
Correct Answer:  B. Current and Savings Accounts as a proportion of total deposits
EXPLANATION

CASA (Current Account Saving Account) ratio measures the proportion of low-cost deposits, indicating deposit quality and profitability.

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Q.133 Medium General Awareness
Which of the following is a regulatory tool used by RBI to control inflation and manage money supply?
A Quantitative Easing
B Open Market Operations (OMO)
C Fiscal policy measures
D Tax rate adjustments
Correct Answer:  B. Open Market Operations (OMO)
EXPLANATION

OMO involves buying and selling government securities to regulate liquidity and money supply in the banking system.

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Q.134 Medium General Awareness
Under which facility can banks borrow money from RBI on a temporary basis to manage short-term liquidity mismatches?
A Open Market Operations (OMO)
B Repo Operations
C Liquidity Adjustment Facility (LAF)
D Collateralized Borrowing and Lending Obligation (CBLO)
Correct Answer:  C. Liquidity Adjustment Facility (LAF)
EXPLANATION

LAF allows banks to borrow through Repo (overnight) or Reverse Repo to manage short-term liquidity needs.

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Q.135 Medium General Awareness
What is the purpose of the Marginal Standing Facility (MSF) introduced by RBI?
A To provide overnight lending to banks against approved securities
B To regulate stock market operations
C To manage foreign exchange reserves
D To monitor non-performing assets
Correct Answer:  A. To provide overnight lending to banks against approved securities
EXPLANATION

MSF allows scheduled banks to borrow funds overnight from RBI at a penal rate against eligible securities when other liquidity sources are exhausted.

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Q.136 Medium General Awareness
Which international financial organization publishes the Basel Accords that guide banking regulations?
A International Monetary Fund (IMF)
B World Bank
C Basel Committee on Banking Supervision (BCBS)
D Bank for International Settlements (BIS)
Correct Answer:  C. Basel Committee on Banking Supervision (BCBS)
EXPLANATION

BCBS, established in 1974, develops banking regulations and prudential standards, publishing Basel I, II, and III accords.

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Q.137 Medium General Awareness
Under the 2024 RBI guidelines, what is the minimum Capital Adequacy Ratio (CAR) required for Scheduled Commercial Banks?
A 9%
B 10.5%
C 11.5%
D 12.5%
Correct Answer:  B. 10.5%
EXPLANATION

RBI mandates a minimum CAR of 10.5% for SCBs (including Tier-1 and Tier-2 capital), exceeding Basel III minimum of 8%.

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Q.138 Medium General Awareness
What is the primary objective of the Insolvency and Bankruptcy Code, 2016?
A To regulate interest rates on loans
B To provide a time-bound resolution mechanism for stressed assets
C To increase bank lending to MSMEs
D To promote digital banking services
Correct Answer:  B. To provide a time-bound resolution mechanism for stressed assets
EXPLANATION

IBC aims to provide a unified mechanism to resolve corporate insolvency through a time-bound process of 180 days (extendable to 270 days).

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Q.139 Medium General Awareness
Which of the following best describes 'Liquidity Coverage Ratio (LCR)'?
A Ratio of liquid assets to total assets
B Ratio of high-quality liquid assets to net cash outflows over 30 days
C Ratio of advances to deposits
D Ratio of equity to total liabilities
Correct Answer:  B. Ratio of high-quality liquid assets to net cash outflows over 30 days
EXPLANATION

LCR is a Basel III requirement ensuring banks maintain sufficient high-quality liquid assets to survive a 30-day liquidity stress scenario.

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Q.140 Medium General Awareness
Under which Act does the RBI regulate the functioning of payment systems in India?
A Banking Regulation Act, 1949
B Payment and Settlement Systems Act, 2007
C Reserve Bank of India Act, 1934
D Foreign Exchange Management Act, 1999
Correct Answer:  B. Payment and Settlement Systems Act, 2007
EXPLANATION

The Payment and Settlement Systems Act, 2007 grants RBI the authority to regulate and oversee payment systems in India.

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