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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 151–160 of 246
Topics in Bank PO / Clerk / RBI
Q.151 Medium General Awareness
Which of the following is an example of a non-banking financial company (NBFC)?
A State Bank of India
B HDFC Bank
C Bajaj Finance Limited
D Reserve Bank of India
Correct Answer:  C. Bajaj Finance Limited
EXPLANATION

Bajaj Finance Limited is an NBFC that provides financial services like loans and deposits but doesn't have a banking license like commercial banks.

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Q.152 Medium General Awareness
Which of the following best describes the function of SEBI?
A Regulates commercial banking sector
B Regulates securities and capital markets
C Issues currency and manages inflation
D Manages government borrowing
Correct Answer:  B. Regulates securities and capital markets
EXPLANATION

SEBI (Securities and Exchange Board of India) regulates and develops the securities market, protecting investor interests and ensuring fair market practices.

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Q.153 Medium General Awareness
If a bank's NPA (Non-Performing Assets) ratio increases significantly, what does it indicate?
A Improved asset quality
B Deterioration in loan portfolio quality
C Better profitability
D Increased market share
Correct Answer:  B. Deterioration in loan portfolio quality
EXPLANATION

A higher NPA ratio indicates that a larger portion of the bank's loans are in default or arrears, reflecting deteriorating asset quality and credit risk.

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Q.154 Medium General Awareness
Which banking regulation requires banks to maintain a minimum percentage of capital against their risk-weighted assets?
A Statutory Liquidity Ratio
B Reserve Requirement Ratio
C Capital Adequacy Ratio
D Cash Reserve Ratio
Correct Answer:  C. Capital Adequacy Ratio
EXPLANATION

Capital Adequacy Ratio (CAR) is a regulatory requirement ensuring banks maintain sufficient capital to absorb potential losses from their risk-weighted assets.

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Q.155 Medium General Awareness
What is the primary objective of Priority Sector Lending (PSL)?
A To increase bank's profit margins
B To provide credit to disadvantaged sectors of the economy
C To reduce RBI's regulatory burden
D To encourage foreign investments
Correct Answer:  B. To provide credit to disadvantaged sectors of the economy
EXPLANATION

PSL mandates banks to lend a certain percentage of advances to priority sectors like agriculture, SMEs, and education for inclusive growth.

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Q.156 Medium General Awareness
Which of the following credit facilities is typically used for short-term working capital needs?
A Mortgage Loan
B Cash Credit
C Home Loan
D Auto Loan
Correct Answer:  B. Cash Credit
EXPLANATION

Cash Credit is a short-term credit facility provided to businesses for meeting their working capital requirements on a revolving basis.

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Q.157 Medium General Awareness
What is the minimum Statutory Liquidity Ratio (SLR) as per RBI norms in 2024?
A 18%
B 19.5%
C 20%
D 21.5%
Correct Answer:  B. 19.5%
EXPLANATION

The Statutory Liquidity Ratio is currently maintained at 19.5% of net demand and time liabilities, as per RBI guidelines.

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Q.158 Medium General Awareness
Which of the following is a measure of bank's profitability?
A Capital Adequacy Ratio
B Return on Assets (ROA)
C Statutory Liquidity Ratio
D Priority Sector Lending
Correct Answer:  B. Return on Assets (ROA)
EXPLANATION

Return on Assets (ROA) measures how efficiently a bank uses its assets to generate profit. It's calculated as Net Income / Total Assets.

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Q.159 Medium
A bank's Loan-to-Deposit (LTD) ratio is 78%. If total deposits are ₹5,00,000 crore, what are the total loans and advances?
A ₹3,90,000 crore
B ₹3,50,000 crore
C ₹4,20,000 crore
D ₹4,50,000 crore
Correct Answer:  A. ₹3,90,000 crore
EXPLANATION

LTD Ratio = (Total Loans / Total Deposits) × 100. Therefore, Total Loans = (78/100) × 5,00,000 = ₹3,90,000 crore

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Q.160 Medium
Under RBI's Asset Classification framework, a loan becomes NPA if it remains overdue for how many days?
A 30 days
B 60 days
C 90 days
D 180 days
Correct Answer:  C. 90 days
EXPLANATION

As per RBI's 2015 norms, any loan with outstanding principal or interest remaining unpaid for 90 days (3 months) is classified as NPA.

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