Government Jobs Exam Preparation — SSC, UPSC, Bank, Railway

Q.31 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

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Q.32 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.

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Q.33 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)

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Q.34 Medium

What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY) launched in 2015?

A Provide agricultural loans to farmers

B Facilitate credit to micro and small enterprises without collateral

C Offer housing loans at subsidized rates

D Support large industrial projects

Correct Answer: B. Facilitate credit to micro and small enterprises without collateral

Explanation:

PMMY aims to provide collateral-free loans to micro and small enterprises through banks, supporting the growth of small businesses and self-employment.

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Q.35 Hard

A bank's Return on Assets (ROA) is 1.5% and its net profit is ₹3,000 crores. What is its total asset base?

A ₹1,50,000 crores

B ₹2,00,000 crores

C ₹2,50,000 crores

D ₹3,00,000 crores

Correct Answer: B. ₹2,00,000 crores

Explanation:

ROA = (Net Profit / Total Assets) × 100. Therefore, Total Assets = Net Profit / (ROA/100) = 3000 / 0.015 = ₹2,00,000 crores

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Q.36 Hard

In Q1 2024, a bank's advances grew by 15% and deposits grew by 12%. If both started at ₹5,00,000 crores, what is the new Advance-to-Deposit Ratio?

A 1.03

B 1.05

C 1.10

D 1.15

Correct Answer: A. 1.03

Explanation:

New Advances = 500000 × 1.15 = ₹5,75,000 crores. New Deposits = 500000 × 1.12 = ₹5,60,000 crores. Ratio = 575000/560000 = 1.027 ≈ 1.03

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Q.37 Hard

According to RBI's Monetary Policy 2024-2025, what is the repo rate corridor framework (Repo Rate ± corridor width)?

A Base rate ± 0.25%

B Repo rate ± 0.50%

C Policy rate ± 0.50%

D MSF rate ± 0.75%

Correct Answer: C. Policy rate ± 0.50%

Explanation:

RBI maintains a corridor with repo rate (policy rate) at the center, with Standing Deposit Facility (SDF) at -50 bps and Marginal Standing Facility (MSF) at +50 bps.

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Q.38 Hard

A bank's Customer Acquisition Cost (CAC) is ₹2,500 and the Lifetime Value (LTV) of a customer is ₹50,000. What is the LTV:CAC ratio?

A 10:1

B 15:1

C 20:1

D 25:1

Correct Answer: C. 20:1

Explanation:

LTV:CAC ratio = 50000:2500 = 20:1, indicating that each customer generates 20 times the acquisition cost in lifetime value.

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Q.39 Medium

If a bank's Net Interest Margin (NIM) is 2.8% and its total assets are ₹5,00,000 crores, what is the approximate Net Interest Income in crores?

A ₹14,000 crores

B ₹17,857 crores

C ₹8,928 crores

D ₹12,500 crores

Correct Answer: A. ₹14,000 crores

Explanation:

NIM = (Net Interest Income / Total Assets) × 100. Therefore, NII = (2.8/100) × 5,00,000 = ₹14,000 crores

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Q.40 Medium

Which of the following is NOT a component of the RBI's Financial Stability Report assessment framework?

A Asset Quality

B Capital Adequacy

C Customer Satisfaction Index

D Profitability Metrics

Correct Answer: C. Customer Satisfaction Index

Explanation:

The RBI's Financial Stability Report focuses on asset quality, capital adequacy, profitability, and liquidity. Customer Satisfaction Index is not part of the formal FSR framework.

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