Q.11
Easy
A data interpretation question: Bank X processed 5,000 transactions in Q1 2024, with 98% success rate. How many transactions failed?
Explanation:
Failed transactions = 5,000 × 2% = 5,000 × 0.02 = 100 transactions
Q.12
Medium
If a bank's Net Interest Margin (NIM) increased from 2.8% to 3.2%, what does this signify?
A
The bank's profitability has decreased
B
The bank's profitability has improved
C
The bank's lending has decreased
D
There is no impact on profitability
Correct Answer:
B. The bank's profitability has improved
Explanation:
An increase in NIM indicates the bank is earning more profit on its lending and deposit operations
Q.13
Hard
Calculate the EMI for a loan of ₹5,00,000 at 10% p.a. for 5 years (60 months). (Use approximate formula)
A
₹9,500
B
₹10,600
C
₹11,000
D
₹12,500
Correct Answer:
B. ₹10,600
Explanation:
Using EMI formula: P[r(1+r)^n]/[(1+r)^n-1] ≈ ₹10,600 (Monthly rate = 10%/12)
Q.14
Medium
What does the term 'Markdown' mean in banking context?
A
Reduction in interest rates on deposits
B
A discount offered by the bank on services
C
The difference between buying and selling price of securities
D
A penalty charged by RBI
Correct Answer:
C. The difference between buying and selling price of securities
Explanation:
Markdown refers to the spread between the bid-ask prices in securities trading by banks
Q.15
Medium
According to the 2024-2025 pattern, what is the current CRR (Cash Reserve Ratio) in India?
Explanation:
As of 2024, RBI has maintained CRR at 4% of NDTL for banks
Q.16
Easy
A bank offered 6% interest on deposits and charged 9% on loans. What is the spread?
Explanation:
Spread = Lending rate - Deposit rate = 9% - 6% = 3%
Q.17
Medium
If Bank's total assets are ₹10,00,000 crores and equity is ₹50,000 crores, what is the leverage ratio?
A
5:1
B
10:1
C
15:1
D
20:1
Explanation:
Leverage Ratio = Total Assets / Equity = 10,00,000 / 50,000 = 20:1
Q.18
Hard
What is the significance of the 'Basel III' accord in banking?
A
It sets standards for bank capital adequacy
B
It regulates deposit interest rates
C
It controls loan disbursement amounts
D
It manages RBI's monetary policy
Correct Answer:
A. It sets standards for bank capital adequacy
Explanation:
Basel III sets international standards for bank capital adequacy, stress testing, and market liquidity risk
Q.19
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.20
Easy
If Bank A's Capital Adequacy Ratio (CAR) is 15% and Bank B's CAR is 12%, which bank has a stronger capital position relative to the Basel III minimum requirement of 10.5%?
A
Bank A with a buffer of 4.5% above minimum
B
Bank B with a buffer of 1.5% above minimum
C
Both banks are equally positioned
D
Cannot be determined without asset information
Correct Answer:
A. Bank A with a buffer of 4.5% above minimum
Explanation:
Bank A has CAR of 15% vs Basel III minimum of 10.5%, giving a buffer of 4.5%. Bank B has only 1.5% buffer. Higher CAR indicates stronger capital position and lower risk.
