Showing 71–80 of 200 questions
in General Awareness
Which regulatory framework governs cross-border rupee transactions in India?
A
LIBOR Framework
B
Liberalized Remittance Scheme (LRS)
C
Foreign Exchange Management Act (FEMA) and RBI guidelines
D
International Monetary Fund (IMF) protocols
Correct Answer:
C. Foreign Exchange Management Act (FEMA) and RBI guidelines
EXPLANATION
Cross-border rupee transactions are regulated under FEMA and specific RBI guidelines for internationalization of rupee.
A bank's Loan-to-Deposit (LTD) ratio is 95%. What does this indicate?
A
Strong liquidity position with conservative lending
B
Aggressive lending with potential liquidity stress
C
Excellent profitability
D
Poor asset quality
Correct Answer:
B. Aggressive lending with potential liquidity stress
EXPLANATION
An LTD ratio of 95% indicates the bank is lending aggressively relative to deposits, which may strain liquidity.
What is the coverage amount under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?
A
₹1 lakh per depositor per bank
B
₹2 lakhs per depositor per bank
C
₹5 lakhs per depositor per bank
D
₹10 lakhs per depositor per bank
Correct Answer:
C. ₹5 lakhs per depositor per bank
EXPLANATION
DICGC provides deposit insurance coverage of ₹5 lakhs per depositor per bank to ensure depositor security.
Which of the following banks is NOT part of the RBI's core supervisory framework as a Systemically Important Bank (SIB)?
A
ICICI Bank
B
HDFC Bank
C
Regional Rural Bank
D
Axis Bank
Correct Answer:
C. Regional Rural Bank
EXPLANATION
Regional Rural Banks are not classified as SIBs; only major private and public banks meeting size criteria are designated as SIBs.
In banking terminology, what does 'Amortization' refer to?
A
The process of charging depreciation on assets
B
Paying off a debt gradually through scheduled payments
C
The rate of inflation in a fiscal year
D
The conversion of assets into cash
Correct Answer:
B. Paying off a debt gradually through scheduled payments
EXPLANATION
Amortization is the process of gradually paying off a loan through regular, scheduled installments over time.
What is the mandated percentage of credit disbursement for Micro and Small Enterprises (MSE) under priority sector lending?
EXPLANATION
RBI mandates that at least 12% of total priority sector lending should go to Micro and Small Enterprises.
Which RBI scheme allows banks to lend against government securities as collateral?
A
Liquidity Coverage Ratio (LCR)
B
Marginal Standing Facility (MSF)
C
Securities borrowing and lending scheme
D
Open Market Operations (OMO)
Correct Answer:
C. Securities borrowing and lending scheme
EXPLANATION
Securities borrowing and lending allows banks to manage their security portfolios by borrowing/lending government securities.
What does CASA ratio signify in banking?
A
Current Account to Savings Account ratio - measure of deposit mix
B
Capital Adequacy Stress Assessment ratio
C
Credit Assessment and Sanction Authority
D
Compliance and Safety Analysis ratio
Correct Answer:
A. Current Account to Savings Account ratio - measure of deposit mix
EXPLANATION
CASA ratio reflects the proportion of Current Accounts to Savings Accounts, indicating low-cost deposit base quality.
Which of the following is a characteristic of a Certificate of Deposit (CD)?
A
It is a demand deposit
B
It is a negotiable, fixed-income security issued at a discount
C
It offers variable interest rates
D
It can be withdrawn without penalty before maturity
Correct Answer:
B. It is a negotiable, fixed-income security issued at a discount
EXPLANATION
CDs are negotiable instruments issued by banks at a discount, sold in the money market, with fixed maturity periods.
As per recent RBI guidelines (2024), what is the threshold loan amount for priority sector lending to agriculture?
A
₹50 lakhs
B
₹75 lakhs
C
₹1 crore
D
₹2 crores
Correct Answer:
A. ₹50 lakhs
EXPLANATION
RBI prescribes priority sector lending to agriculture with a loan limit of ₹50 lakhs for individual farmers.
