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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 331–340 of 494
Topics in Bank PO / Clerk / RBI
Q.331 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.332 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.333 Easy
A bank approves a working capital loan of ₹50 lakh at 9.5% p.a. for 2 years. Assuming simple interest, what is the total interest payable?
A ₹9.5 lakh
B ₹9.75 lakh
C ₹95,000
D ₹4.75 lakh
Correct Answer:  A. ₹9.5 lakh
EXPLANATION

Simple Interest = (Principal × Rate × Time) / 100 = (50,00,000 × 9.5 × 2) / 100 = ₹9.5 lakh

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Q.334 Easy
What is the current Statutory Liquidity Ratio (SLR) requirement for Scheduled Commercial Banks as per RBI's 2024 guidelines?
A 16%
B 17%
C 18%
D 19%
Correct Answer:  C. 18%
EXPLANATION

RBI has maintained the SLR requirement at 18% of Net Demand and Time Liabilities (NDTL) since 2020.

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Q.335 Easy
A bank's Net Interest Margin (NIM) is 3.2%. Which statement correctly interprets NIM?
A The bank earned ₹3.20 profit on every ₹100 of assets
B The difference between interest earned and interest paid as a percentage of earning assets
C The total interest income divided by total deposits
D The percentage of non-performing loans in the portfolio
Correct Answer:  B. The difference between interest earned and interest paid as a percentage of earning assets
EXPLANATION

NIM = (Interest Income - Interest Expense) / Earning Assets. It measures the spread between interest earned and paid, expressed as a percentage of earning assets.

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Q.336 Easy
If a customer deposits ₹5 lakh in a scheduled bank and the bank fails, what is the maximum amount covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?
A ₹1 lakh
B ₹3 lakh
C ₹5 lakh
D ₹10 lakh
Correct Answer:  C. ₹5 lakh
EXPLANATION

DICGC provides deposit insurance coverage up to ₹5 lakh per depositor per bank since 2020, increased from ₹1 lakh.

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Q.337 Easy
A bank's Capital Adequacy Ratio (CAR) stands at 14.5%. Under Basel III norms, what is the minimum required CAR for Scheduled Commercial Banks?
A 10.5%
B 11.5%
C 12.5%
D 13.5%
Correct Answer:  B. 11.5%
EXPLANATION

Basel III mandates a minimum CAR of 11.5% for Indian SCBs (including CCB of 2.5%). The bank's 14.5% CAR is above the minimum requirement.

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Q.338 Hard
Under the Basel III framework, what is the maximum leverage ratio (Tier 1 capital to total assets) for Indian banks as mandated by RBI in 2024?
A 2%
B 3%
C 4%
D 5%
Correct Answer:  B. 3%
EXPLANATION

RBI mandates a minimum leverage ratio of 3% (Tier 1 capital divided by total assets) for banks to prevent excessive leverage under Basel III.

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Q.339 Hard
A bank's Gross NPA declined from 4.2% to 3.1%, while Slippage ratio increased from 2.8% to 3.5%. What is the likely scenario?
A The bank recovered old NPAs while new stress indicators worsened
B The bank's credit quality improved uniformly
C The bank reduced its advance portfolio
D The bank increased provisioning levels
Correct Answer:  A. The bank recovered old NPAs while new stress indicators worsened
EXPLANATION

Declining Gross NPA with increasing Slippage ratio suggests recovery of old NPAs but deteriorating new loan quality, indicating mixed asset quality trends.

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Q.340 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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