Showing 1–10 of 494 questions
Q.1
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
Q.2
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
Q.3
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
Q.4
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
Q.5
Medium
A customer deposits ₹1,00,000 in a Fixed Deposit at 7% p.a. for 2 years with annual compounding. What is the final amount?
A
₹1,14,490
B
₹1,14,980
C
₹1,15,490
D
₹1,16,490
Correct Answer:
A. ₹1,14,490
Explanation:
A = P(1 + r/100)^n = 1,00,000(1.07)^2 = 1,00,000 × 1.1449 = ₹1,14,490
Q.6
Easy
What is the maximum deposit amount covered under DICGC insurance scheme as of 2024?
A
₹1 lakh per depositor per bank
B
₹2 lakh per depositor per bank
C
₹5 lakh per depositor per bank
D
Unlimited
Correct Answer:
C. ₹5 lakh per depositor per bank
Explanation:
DICGC (now DIGC) covers maximum ₹5 lakh per depositor per bank since May 2021
Q.7
Medium
In a bank's balance sheet, what does NPA (Non-Performing Asset) refer to?
A
New Product Advancement
B
Loans where payments are overdue by 90+ days
C
Net Profit Amount
D
National Policy Agreement
Correct Answer:
B. Loans where payments are overdue by 90+ days
Explanation:
NPA is a classification for loans where principal or interest payment is overdue by 90 days or more
Q.8
Easy
A customer takes a loan of ₹2,00,000 at 12% p.a. for 5 years. What is the total simple interest?
A
₹1,20,000
B
₹1,40,000
C
₹1,60,000
D
₹2,00,000
Correct Answer:
A. ₹1,20,000
Explanation:
SI = (2,00,000 × 12 × 5)/100 = ₹1,20,000
Q.9
Medium
If a bank's CAR (Capital Adequacy Ratio) is 15%, what does this indicate?
A
The bank has ₹15 in capital for every ₹100 of assets
B
The bank is undercapitalized
C
The bank exceeds the minimum regulatory requirement
D
Both A and C
Correct Answer:
D. Both A and C
Explanation:
CAR of 15% means the bank has adequate capital buffer. Regulatory minimum is 10.5%, so 15% indicates compliance and strength
Q.10
Medium
What is the current Statutory Liquidity Ratio (SLR) requirement set by RBI as per 2024-2025?
Explanation:
As of 2024, RBI maintains SLR requirement at 18% of Net Demand and Time Liabilities (NDTL)
