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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 221–230 of 246
Topics in Bank PO / Clerk / RBI
Q.221 Medium
A bank's Capital Adequacy Ratio (CAR) is 15.2%. Under Basel III, which tier of capital primarily contributes to this ratio?
A Tier 1 Capital only
B Tier 2 Capital only
C Both Tier 1 and Tier 2 Capital
D Tier 3 Capital
Correct Answer:  C. Both Tier 1 and Tier 2 Capital
EXPLANATION

CAR = (Tier 1 + Tier 2 + Tier 3 Capital) / Risk-Weighted Assets. Basel III requires minimum CAR of 10.5% (including capital conservation buffer) for Indian banks.

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Q.222 Medium
Which banking regulation requires banks to maintain a minimum Statutory Liquidity Ratio (SLR)?
A Basel III Framework
B Banking Regulation Act, 1949
C RBI Act, 1934
D Negotiable Instruments Act, 1881
Correct Answer:  B. Banking Regulation Act, 1949
EXPLANATION

Section 24 of the Banking Regulation Act, 1949 mandates the maintenance of SLR, which is currently set at 18% of NDTL as per RBI guidelines.

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Q.223 Medium
A bank offers 8.5% p.a. interest on deposits compounded quarterly. What will be the effective annual rate (EAR)?
A 8.74%
B 8.82%
C 8.91%
D 9.05%
Correct Answer:  B. 8.82%
EXPLANATION

EAR = (1 + r/n)^n - 1 = (1 + 0.085/4)^4 - 1 = (1.02125)^4 - 1 ≈ 0.0882 or 8.82%

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Q.224 Medium
Which of the following is NOT a component of the RBI's Financial Stability Report assessment framework?
A Asset Quality
B Capital Adequacy
C Customer Satisfaction Index
D Profitability Metrics
Correct Answer:  C. Customer Satisfaction Index
EXPLANATION

The RBI's Financial Stability Report focuses on asset quality, capital adequacy, profitability, and liquidity. Customer Satisfaction Index is not part of the formal FSR framework.

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Q.225 Medium
If a bank's Net Interest Margin (NIM) is 2.8% and its total assets are ₹5,00,000 crores, what is the approximate Net Interest Income in crores?
A ₹14,000 crores
B ₹17,857 crores
C ₹8,928 crores
D ₹12,500 crores
Correct Answer:  A. ₹14,000 crores
EXPLANATION

NIM = (Net Interest Income / Total Assets) × 100. Therefore, NII = (2.8/100) × 5,00,000 = ₹14,000 crores

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Q.226 Medium
What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY) launched in 2015?
A Provide agricultural loans to farmers
B Facilitate credit to micro and small enterprises without collateral
C Offer housing loans at subsidized rates
D Support large industrial projects
Correct Answer:  B. Facilitate credit to micro and small enterprises without collateral
EXPLANATION

PMMY aims to provide collateral-free loans to micro and small enterprises through banks, supporting the growth of small businesses and self-employment.

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Q.227 Medium
In a distribution chart, Bank X's retail deposits increased from 35% to 42% of total deposits. What is the percentage point increase?
A 7 percentage points
B 20% increase
C 2 percentage points
D 35% increase
Correct Answer:  A. 7 percentage points
EXPLANATION

Percentage point change = 42% - 35% = 7 percentage points (not a 7% increase, but an increase of 7 percentage points)

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Q.228 Medium
Which regulatory framework mandates that banks maintain a minimum Liquidity Coverage Ratio (LCR)?
A Basel I
B Basel II
C Basel III
D CRAR guidelines
Correct Answer:  C. Basel III
EXPLANATION

Basel III framework requires banks to maintain a minimum Liquidity Coverage Ratio of 100% to ensure they have sufficient high-quality liquid assets.

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Q.229 Medium
A customer takes a loan of ₹4,00,000 at 9% p.a. for 5 years. Using the simple interest formula, what is the total interest payable?
A ₹1,60,000
B ₹1,80,000
C ₹2,00,000
D ₹2,20,000
Correct Answer:  B. ₹1,80,000
EXPLANATION

Simple Interest = (P × R × T) / 100 = (400000 × 9 × 5) / 100 = ₹1,80,000

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Q.230 Medium
According to the RBI's 2024-2025 guidelines, what is the current Cash Reserve Ratio (CRR) for scheduled commercial banks?
A 3.5%
B 4.0%
C 4.5%
D 5.0%
Correct Answer:  B. 4.0%
EXPLANATION

As per RBI's latest monetary policy, the CRR for scheduled commercial banks is maintained at 4.0% of their net demand and time liabilities.

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