Bank PO / Clerk / RBI
PO, Clerk, RRB — Quantitative, Reasoning, GK
494 Questions 5 Topics Take Test
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Showing 491–494 of 494 questions
Q.491 Medium
If the Repo Rate is 6.5% and Reverse Repo Rate is 6.25%, which statement is true?
A Banks pay more interest on deposits than they earn on lending
B Banks earn more on lending than they pay on deposits
C Both rates are equal
D The difference is irrelevant to banking operations
Correct Answer:  B. Banks earn more on lending than they pay on deposits
EXPLANATION

Repo Rate is higher than Reverse Repo Rate, so banks earn more when lending to the central bank versus borrowing

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Q.492 Medium
What is the Base Rate set by RBI as of 2024?
A 4.5%
B 5.5%
C 6.5%
D RBI no longer uses Base Rate
Correct Answer:  D. RBI no longer uses Base Rate
EXPLANATION

RBI discontinued Base Rate framework in October 2019 and replaced it with repo rate-based monetary transmission

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Q.493 Easy
A bank's Current Account balance shows a debit of ₹5,000. What does this indicate?
A The bank owes money to the account holder
B The account holder owes money to the bank
C There is no balance in the account
D The account is frozen
Correct Answer:  B. The account holder owes money to the bank
EXPLANATION

A debit in Current Account means the account holder is in overdraft and owes money to the bank

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Q.494 Easy
If a bank offers 8% per annum simple interest on a savings account, what will be the total interest earned on ₹50,000 after 3 years?
A ₹12,000
B ₹15,000
C ₹18,000
D ₹20,000
Correct Answer:  A. ₹12,000
EXPLANATION

SI = (P × R × T)/100 = (50,000 × 8 × 3)/100 = ₹12,000

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