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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 161–170 of 246
Topics in Bank PO / Clerk / RBI
Q.161 Medium
A bank's Cost-to-Income ratio decreased from 48% to 43%. Which statement is correct?
A The bank's profitability has declined
B Operating efficiency has improved
C The bank is spending more on operations
D Cost-to-Income ratio is not a measure of efficiency
Correct Answer:  B. Operating efficiency has improved
EXPLANATION

A lower Cost-to-Income ratio indicates better operational efficiency. The bank generates more income per unit of cost, suggesting improved profitability.

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Q.162 Medium
Under Priority Sector Lending (PSL) norms, what is the minimum percentage of credit that Scheduled Commercial Banks must allocate to agriculture?
A 8%
B 10%
C 12%
D 18%
Correct Answer:  C. 12%
EXPLANATION

RBI's PSL guidelines mandate a minimum 18% of Adjusted Net Bank Credit (ANBC) to agriculture, with 8% to small and marginal farmers.

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Q.163 Medium
A bank's advances grew from ₹2,50,000 crore to ₹2,87,500 crore in FY2024. What is the year-on-year growth rate?
A 12%
B 15%
C 18%
D 20%
Correct Answer:  B. 15%
EXPLANATION

Growth = [(2,87,500 - 2,50,000) / 2,50,000] × 100 = [37,500 / 2,50,000] × 100 = 15%

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Q.164 Medium
Which of the following is NOT included in Tier 1 capital under Basel III framework?
A Common Equity Tier 1 (CET1)
B Additional Tier 1 (AT1) bonds
C Subordinated debt instruments
D Retained earnings
Correct Answer:  C. Subordinated debt instruments
EXPLANATION

Subordinated debt is classified as Tier 2 capital. Tier 1 consists of CET1 and AT1 components including common equity and retained earnings.

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Q.165 Medium
A bank's Gross NPA stands at ₹8,000 crore and its total advances are ₹1,00,000 crore. What is the Gross NPA ratio?
A 8%
B 9.2%
C 7.5%
D 10%
Correct Answer:  A. 8%
EXPLANATION

Gross NPA Ratio = (Gross NPA / Total Advances) × 100 = (8,000 / 1,00,000) × 100 = 8%

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Q.166 Medium
RBI's Liquidity Coverage Ratio (LCR) norm requires banks to maintain high-quality liquid assets (HQLA) equal to what percentage of net cash outflows?
A 50%
B 75%
C 100%
D 125%
Correct Answer:  C. 100%
EXPLANATION

Basel III's LCR requirement mandates that HQLA should cover at least 100% of net cash outflows over a 30-day stressed scenario.

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Q.167 Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% year-on-year. What is the percentage point improvement?
A 0.3 percentage points
B 37.5% improvement
C Both A and B are correct
D 1.9 percentage points
Correct Answer:  C. Both A and B are correct
EXPLANATION

The improvement is 0.3 percentage points (1.1% - 0.8%). In relative terms, this represents a 37.5% increase (0.3/0.8 × 100).

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Q.168 Medium
Which regulatory measure is RBI NOT directly responsible for in Indian banking supervision?
A Setting the policy repo rate
B Regulating Insurance companies' investment portfolios
C Setting capital adequacy norms for banks
D Monitoring Foreign Exchange reserves
Correct Answer:  B. Regulating Insurance companies' investment portfolios
EXPLANATION

IRDAI (Insurance Regulatory and Development Authority), not RBI, regulates insurance companies. RBI handles banking regulation and monetary policy.

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Q.169 Medium
A bank's Loan-to-Deposit (LTD) ratio increased from 78% to 85%. Which statement is MOST accurate?
A The bank reduced lending to customers
B The bank increased leverage and credit deployment but faces higher liquidity risk
C The bank's deposits decreased significantly
D The bank's profitability decreased
Correct Answer:  B. The bank increased leverage and credit deployment but faces higher liquidity risk
EXPLANATION

Higher LTD ratio (85%) means more advances relative to deposits, increasing credit exposure and potential liquidity risk, though showing aggressive lending strategy.

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Q.170 Medium
Under RBI's Structured Data Standards (SDS), which banking data must all scheduled banks submit digitally by 2025?
A Only balance sheet data
B Only loan portfolio data
C Standardized regulatory and prudential data in structured format
D Only customer complaint data
Correct Answer:  C. Standardized regulatory and prudential data in structured format
EXPLANATION

SDS mandates standardized submission of regulatory and prudential returns in structured digital format for better data quality and analysis.

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