Bank O's Advances grew by 15% while Deposits grew by 10% in 2024. If this trend continues, what risk does the bank face?

The correct answer is B: Liquidity mismatch and potential breach of regulatory ratios. When advances grow faster than deposits, it creates a liquidity mismatch. The bank may struggle to fund its loan portfolio, potentially violating LDR and LCR norms.

A savings account holder deposited ₹50,000 at 4% p.a. compounded quarterly. What will be the amount after 2 years?

The correct answer is A: ₹54,120.25. Using A = P(1 + r/400)^n where P=50000, r=4, n=8 quarters: A = 50000(1.01)^8 = ₹54,120.25

Which committee was set up to review the monetary policy framework in India?

The correct answer is A: Urjit Patel Committee. The Urjit Patel Committee (2014) reviewed the monetary policy framework and recommended an inflation-targeting approach.

In a situation where a bank's Core Banking Solution (CBS) faces a system failure, which RBI regulation requires it to have a business continuity plan?

The correct answer is D: All of the above. RBI's multiple guidelines including IT Risk Management and Operational Risk frameworks mandate banks to have robust business continuity and disaster recovery plans to ensure service continuity.

Which international financial organization publishes the Basel Accords that guide banking regulations?

The correct answer is C: Basel Committee on Banking Supervision (BCBS). BCBS, established in 1974, develops banking regulations and prudential standards, publishing Basel I, II, and III accords.

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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

246 Q 3 Topics Take Mock Test

Difficulty: All Easy Medium Hard 241–246 of 246

Topics in Bank PO / Clerk / RBI

All General Awareness 200 Banking Awareness 18 Data Interpretation 100

Q.241 Medium

What is the current Statutory Liquidity Ratio (SLR) requirement set by RBI as per 2024-2025?

A 15%

B 18%

C 20%

D 25%

Correct Answer: B. 18%

EXPLANATION

As of 2024, RBI maintains SLR requirement at 18% of Net Demand and Time Liabilities (NDTL)

Test

Q.242 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

Test

Q.243 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

Test

Q.244 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

Test

Q.245 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

Test

Q.246 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

Test

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