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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 351–360 of 494
Topics in Bank PO / Clerk / RBI
Q.351 Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% while Return on Equity (ROE) remained at 12%. What can be inferred?
A Profitability improved with better asset utilization
B The bank increased its leverage significantly
C Deposits decreased while profits increased
D Operating costs reduced but asset base remains unchanged
Correct Answer:  A. Profitability improved with better asset utilization
EXPLANATION

Improved ROA indicates better profitability relative to total assets. Stable ROE with improved ROA suggests maintained leverage with better operational efficiency.

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Q.352 Medium
Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
A Death due to natural causes
B Accidental death
C Disability coverage
D Critical illness coverage
Correct Answer:  D. Critical illness coverage
EXPLANATION

PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.

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Q.353 Easy
A bank's loan portfolio shows: Retail advances ₹2,50,000 cr, Corporate advances ₹3,50,000 cr, Agriculture ₹1,50,000 cr. What is the retail advance percentage?
A 25%
B 35%
C 33.33%
D 31.25%
Correct Answer:  D. 31.25%
EXPLANATION

Retail = 2,50,000 ÷ (2,50,000 + 3,50,000 + 1,50,000) × 100 = 2,50,000 ÷ 8,00,000 × 100 = 31.25%

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Q.354 Medium
RBI's Current Account and Savings Account (CASA) ratio benchmark for banks is typically aimed at achieving what percentage?
A 30-35%
B 35-40%
C 40-45%
D 50%+
Correct Answer:  B. 35-40%
EXPLANATION

A healthy CASA ratio of 35-40% indicates banks have a stable, low-cost deposit base, which improves net interest margins.

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Q.355 Easy
A savings account holder deposited ₹50,000 at 4% p.a. compounded quarterly. What will be the amount after 2 years?
A ₹54,120.25
B ₹54,061.01
C ₹54,200.50
D ₹54,000.00
Correct Answer:  A. ₹54,120.25
EXPLANATION

Using A = P(1 + r/400)^n where P=50000, r=4, n=8 quarters: A = 50000(1.01)^8 = ₹54,120.25

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Q.356 Medium
Under Basel III norms, what is the minimum Common Equity Tier 1 (CET1) capital ratio for banks in India as per RBI guidelines 2024?
A 5.5%
B 6.5%
C 7.5%
D 8.5%
Correct Answer:  B. 6.5%
EXPLANATION

RBI mandates a minimum CET1 capital ratio of 6.5% for Indian banks under Basel III framework to ensure financial stability.

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Q.357 Easy
A bank's Net NPA ratio decreased from 2.5% to 1.8% year-on-year. What does this indicate?
A Improvement in asset quality and better credit management
B Decrease in total advances given by the bank
C Increase in provision coverage ratio without improvement in asset quality
D Reduction in the bank's profitability margins
Correct Answer:  A. Improvement in asset quality and better credit management
EXPLANATION

A lower Net NPA ratio indicates fewer non-performing assets relative to total advances, showing better asset quality and credit risk management by the bank.

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Q.358 Hard
A bank's Asset Quality Indicator shows Net NPA ratio of 0.8% with Gross NPA ratio of 2.5%. What is the Provision Coverage Ratio?
A 32%
B 68%
C 75.2%
D Cannot be determined
Correct Answer:  B. 68%
EXPLANATION

PCR = (Gross NPA - Net NPA) / Gross NPA × 100 = (2.5 - 0.8) / 2.5 × 100 = 1.7/2.5 × 100 = 68%.

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Q.359 Hard
Which of the following is a correct statement about RBI's Standing Deposit Facility (SDF) as per 2024 norms?
A It offers higher returns than repo operations
B It is a facility for banks to deposit funds at a fixed rate
C It provides overnight liquidity at a fixed rate below repo
D It is mandatory for all banks
Correct Answer:  C. It provides overnight liquidity at a fixed rate below repo
EXPLANATION

The Standing Deposit Facility allows banks to place funds with RBI at a fixed rate (typically 25-50 bps below repo) to manage liquidity surplus.

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Q.360 Hard
A bank offers a Fixed Deposit at 6.2% p.a. compounded quarterly for 2 years on ₹1 lakh. What is the maturity amount? (Use: (1.0155)^8 ≈ 1.128)
A ₹1,12,800
B ₹1,12,700
C ₹1,13,600
D ₹1,14,500
Correct Answer:  A. ₹1,12,800
EXPLANATION

Quarterly rate = 6.2%/4 = 1.55%, n = 8 quarters. Amount = 1,00,000 × (1.0155)^8 ≈ 1,00,000 × 1.128 = ₹1,12,800.

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