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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 451–460 of 494
Topics in Bank PO / Clerk / RBI
Q.451 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.452 Easy
Bank X's total deposits are ₹2,50,000 crores with advances of ₹1,87,500 crores. What is the bank's Loan-to-Deposit Ratio (LDR)?
A 65%
B 70%
C 75%
D 80%
Correct Answer:  C. 75%
EXPLANATION

LDR = (Advances / Total Deposits) × 100 = (1,87,500 / 2,50,000) × 100 = 75%. A healthy LDR is typically between 70-85%.

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Q.453 Easy
What is the current mandatory Cash Reserve Ratio (CRR) set by RBI as per 2024-2025 guidelines?
A 3.5%
B 4.0%
C 4.5%
D 5.0%
Correct Answer:  C. 4.5%
EXPLANATION

As per RBI's latest monetary policy framework for 2024-2025, the CRR is maintained at 4.5% of Net Demand and Time Liabilities (NDTL).

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Q.454 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.455 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.456 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.457 Hard
A bank's Customer Acquisition Cost (CAC) is ₹2,500 and the Lifetime Value (LTV) of a customer is ₹50,000. What is the LTV:CAC ratio?
A 10:1
B 15:1
C 20:1
D 25:1
Correct Answer:  C. 20:1
EXPLANATION

LTV:CAC ratio = 50000:2500 = 20:1, indicating that each customer generates 20 times the acquisition cost in lifetime value.

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Q.458 Hard
According to RBI's Monetary Policy 2024-2025, what is the repo rate corridor framework (Repo Rate ± corridor width)?
A Base rate ± 0.25%
B Repo rate ± 0.50%
C Policy rate ± 0.50%
D MSF rate ± 0.75%
Correct Answer:  C. Policy rate ± 0.50%
EXPLANATION

RBI maintains a corridor with repo rate (policy rate) at the center, with Standing Deposit Facility (SDF) at -50 bps and Marginal Standing Facility (MSF) at +50 bps.

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Q.459 Hard
In Q1 2024, a bank's advances grew by 15% and deposits grew by 12%. If both started at ₹5,00,000 crores, what is the new Advance-to-Deposit Ratio?
A 1.03
B 1.05
C 1.10
D 1.15
Correct Answer:  A. 1.03
EXPLANATION

New Advances = 500000 × 1.15 = ₹5,75,000 crores. New Deposits = 500000 × 1.12 = ₹5,60,000 crores. Ratio = 575000/560000 = 1.027 ≈ 1.03

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Q.460 Hard
A bank's Return on Assets (ROA) is 1.5% and its net profit is ₹3,000 crores. What is its total asset base?
A ₹1,50,000 crores
B ₹2,00,000 crores
C ₹2,50,000 crores
D ₹3,00,000 crores
Correct Answer:  B. ₹2,00,000 crores
EXPLANATION

ROA = (Net Profit / Total Assets) × 100. Therefore, Total Assets = Net Profit / (ROA/100) = 3000 / 0.015 = ₹2,00,000 crores

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