Q.11
Medium
A customer invests ₹50,000 in a mutual fund scheme offered by a bank with average annual returns of 12%. What will be the investment value after 2 years (compounded annually)?
A
₹62,720
B
₹64,800
C
₹65,920
D
₹67,500
Correct Answer:
A. ₹62,720
Explanation:
A = 50,000(1.12)^2 = 50,000 × 1.2544 = ₹62,720
Q.12
Medium
A bank's total advances are ₹8,00,000 crores. If Gross NPA (Non-Performing Assets) is 2.5%, what is the value of Gross NPAs?
A
₹15,000 crores
B
₹18,000 crores
C
₹20,000 crores
D
₹25,000 crores
Correct Answer:
C. ₹20,000 crores
Explanation:
Gross NPA = Total Advances × NPA% = 800000 × 2.5% = 800000 × 0.025 = ₹20,000 crores
Q.13
Medium
What is the maximum limit for deposits under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as per 2024-2025 guidelines?
A
₹1,00,000
B
₹2,00,000
C
₹5,00,000
D
₹10,00,000
Correct Answer:
C. ₹5,00,000
Explanation:
The DICGC deposit insurance limit was increased to ₹5,00,000 per depositor per bank effective from May 2021 and continues in 2024-2025.
Q.14
Medium
A bank processes 8,000 digital transactions on Day 1, 12,000 on Day 2, and 15,000 on Day 3. What is the percentage increase from Day 1 to Day 3?
A
75%
B
87.5%
C
100%
D
112.5%
Explanation:
Percentage increase = [(15000 - 8000) / 8000] × 100 = (7000/8000) × 100 = 87.5%
Q.15
Medium
If a bank's Cost-to-Income Ratio (CIR) decreased from 52% to 48%, what does this indicate?
A
Deterioration in operational efficiency
B
Improvement in operational efficiency
C
Increase in non-performing assets
D
Decrease in profitability
Correct Answer:
B. Improvement in operational efficiency
Explanation:
Lower CIR indicates better operational efficiency as the bank is spending less to generate each unit of income. A decrease from 52% to 48% shows improvement.
Q.16
Medium
What is 'Markdown' in the context of banking and securities markets?
A
Reduction in the price of a security sold to a customer
B
Increase in interest rates on deposits
C
Discount given on loan processing fees
D
Adjustment in exchange rates
Correct Answer:
A. Reduction in the price of a security sold to a customer
Explanation:
Markdown refers to the reduction in the price of a security when a dealer sells it to a customer, representing the dealer's profit margin.
Q.17
Medium
According to the RBI's 2024-2025 guidelines, what is the current Cash Reserve Ratio (CRR) for scheduled commercial banks?
A
3.5%
B
4.0%
C
4.5%
D
5.0%
Explanation:
As per RBI's latest monetary policy, the CRR for scheduled commercial banks is maintained at 4.0% of their net demand and time liabilities.
Q.18
Medium
A customer takes a loan of ₹4,00,000 at 9% p.a. for 5 years. Using the simple interest formula, what is the total interest payable?
A
₹1,60,000
B
₹1,80,000
C
₹2,00,000
D
₹2,20,000
Correct Answer:
B. ₹1,80,000
Explanation:
Simple Interest = (P × R × T) / 100 = (400000 × 9 × 5) / 100 = ₹1,80,000
Q.19
Medium
Which regulatory framework mandates that banks maintain a minimum Liquidity Coverage Ratio (LCR)?
A
Basel I
B
Basel II
C
Basel III
D
CRAR guidelines
Correct Answer:
C. Basel III
Explanation:
Basel III framework requires banks to maintain a minimum Liquidity Coverage Ratio of 100% to ensure they have sufficient high-quality liquid assets.
Q.20
Medium
In a distribution chart, Bank X's retail deposits increased from 35% to 42% of total deposits. What is the percentage point increase?
A
7 percentage points
B
20% increase
C
2 percentage points
D
35% increase
Correct Answer:
A. 7 percentage points
Explanation:
Percentage point change = 42% - 35% = 7 percentage points (not a 7% increase, but an increase of 7 percentage points)
