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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

494 Q 3 Topics Take Test
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Difficulty: All Easy Medium Hard 231–240 of 494
Topics in Bank PO / Clerk / RBI
Q.231 Hard General Awareness
Under Basel III norms, what is the minimum Common Equity Tier-1 (CET-1) ratio requirement for banks?
A 4.5%
B 5.5%
C 6.5%
D 8%
Correct Answer:  A. 4.5%
EXPLANATION

Basel III prescribes a minimum CET-1 ratio of 4.5% of risk-weighted assets. India has implemented Basel III norms with additional conservation buffers.

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Q.232 Medium General Awareness
What is the current Inflation Target set by RBI for monetary policy?
A 2% with a band of ±1%
B 4% with a band of ±2%
C 6% with a band of ±1.5%
D 3% with a band of ±0.5%
Correct Answer:  B. 4% with a band of ±2%
EXPLANATION

RBI's inflation target is 4% (Consumer Price Index) with an upper tolerance of 6% and lower tolerance of 2%, as per the RBI Act amendment.

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Q.233 Hard General Awareness
Which international standard governs anti-money laundering and counter-terrorist financing?
A ISO 9001
B FATF (Financial Action Task Force) guidelines
C Basel II Accord
D Dodd-Frank Act
Correct Answer:  B. FATF (Financial Action Task Force) guidelines
EXPLANATION

The Financial Action Task Force (FATF) establishes international standards for combating money laundering and terrorist financing. India complies with FATF recommendations.

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Q.234 Medium General Awareness
What is the objective of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
A To provide health insurance to farmers
B To provide crop insurance coverage against crop failure
C To subsidize fertilizer costs
D To provide agricultural loans at zero interest
Correct Answer:  B. To provide crop insurance coverage against crop failure
EXPLANATION

PMFBY provides comprehensive crop insurance coverage to farmers against crop failure due to natural calamities, pests, and diseases at affordable premiums.

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Q.235 Hard General Awareness
Which of the following is a characteristic of Tier-2 capital for banks?
A Fully paid-up equity shares
B Retained earnings and subordinated debt
C RBI approved securities only
D Government bonds exclusively
Correct Answer:  B. Retained earnings and subordinated debt
EXPLANATION

Tier-2 capital includes subordinated debt, revaluation reserves, and general loan loss provisions. It supplements Tier-1 capital for meeting capital requirements.

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Q.236 Medium General Awareness
What is the significance of the CRR (Cash Reserve Ratio)?
A It is the interest rate charged on loans
B It is the minimum percentage of deposits banks must keep with RBI as cash
C It is the lending rate between banks
D It is the rate of inflation adjustment
Correct Answer:  B. It is the minimum percentage of deposits banks must keep with RBI as cash
EXPLANATION

CRR is the percentage of bank deposits that commercial banks are required to keep as cash reserves with the RBI without earning any interest.

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Q.237 Medium General Awareness
Under the Pradhan Mantri Mudra Yojana (PMMY), who are the target beneficiaries?
A Large manufacturing units
B Non-corporate small businesses and startups
C Only women entrepreneurs
D Agricultural enterprises only
Correct Answer:  B. Non-corporate small businesses and startups
EXPLANATION

PMMY targets non-corporate and non-farm small/micro businesses for collateral-free loans. It includes Shishu, Kishor, and Tarun loan schemes up to ₹10 lakh.

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Q.238 Medium General Awareness
What does the term 'Statutory Liquidity Ratio (SLR)' refer to?
A The ratio of deposits to advances
B The minimum percentage of deposits banks must invest in government securities
C The ratio of capital to risk-weighted assets
D The percentage of deposits available for lending
Correct Answer:  B. The minimum percentage of deposits banks must invest in government securities
EXPLANATION

SLR is the minimum percentage of deposits that commercial banks are required to maintain in the form of government securities and other approved securities with RBI.

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Q.239 Easy General Awareness
Which of the following banks is NOT a public sector bank?
A Punjab National Bank
B Canara Bank
C Axis Bank
D Indian Bank
Correct Answer:  C. Axis Bank
EXPLANATION

Axis Bank is a private sector bank. Punjab National Bank, Canara Bank, and Indian Bank are all public sector banks promoted by the Government of India.

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Q.240 Medium General Awareness
What is the primary role of the Monetary Policy Committee (MPC)?
A To formulate fiscal policy
B To fix the Repo Rate and conduct monetary policy
C To regulate stock exchanges
D To approve government budgets
Correct Answer:  B. To fix the Repo Rate and conduct monetary policy
EXPLANATION

The Monetary Policy Committee, headed by the RBI Governor, is responsible for fixing the Repo Rate and conducting monetary policy to achieve inflation control and growth.

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