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%?
Answer: A
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.
Q.8Easy
A customer deposits ₹1,00,000 in a fixed deposit for 2 years at 7.5% p.a. compounded annually. What will be the maturity amount?
Answer: B
A = P(1+r/100)^n = 100000(1+7.1005)^2 = 100000 × 1.155625 = ₹1,15,562.50. Closest to ₹1,15,625 with standard calculation.
Q.9Easy
What does 'Repo Rate' refer to in the context of RBI monetary policy?
Answer: A
Repo Rate is the rate at which RBI provides liquidity to commercial banks through repurchase agreements. It is a key tool of monetary policy.
Q.10Easy
In a data set, Bank X disbursed ₹500 crores in personal loans in Q1, ₹650 crores in Q2, and ₹780 crores in Q3 of 2024. What is the average quarterly disbursement?
Which of the following is NOT a measure taken under the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
Answer: C
PMJDY provides zero-balance accounts, life insurance via Suraksha Bima, and overdraft facility but does NOT provide direct subsidies on deposits.
Q.12Easy
What is the current mandatory Cash Reserve Ratio (CRR) set by RBI as per 2024-2025 guidelines?
Answer: C
As per RBI's latest monetary policy framework for 2024-2025, the CRR is maintained at 4.5% of Net Demand and Time Liabilities (NDTL).
Q.13Easy
Bank X's total deposits are ₹2,50,000 crores with advances of ₹1,87,500 crores. What is the bank's Loan-to-Deposit Ratio (LDR)?
Answer: C
LDR = (Advances / Total Deposits) × 100 = (1,87,2500,50,000) × 100 = 75%. A healthy LDR is typically between 70-85%.
Q.14Easy
A bank's Non-Performing Asset (NPA) ratio is 2.8%. Which of the following asset classification would NOT be included in this calculation?
Answer: D
NPA includes substandard, doubtful, and loss assets. Standard assets (performing assets) are excluded from NPA calculations as per RBI's asset classification guidelines.
Q.15Easy
Bank Y's Earnings Per Share (EPS) increased from ₹45 to ₹54 year-on-year. What is the percentage growth in EPS?
Which RBI initiative aims to provide affordable credit to the unbanked and underbanked population through banks?
Answer: A
Priority Sector Lending mandates that banks lend at least 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors including agriculture, MSMEs, and weaker sections, promoting financial inclusion.
Q.17Easy
Which government scheme provides deposit insurance coverage up to ₹5 lakh per depositor per bank?
Answer: B
DICGC, established under the RBI, provides deposit insurance covering up to ₹5 lakh per depositor per bank per financial year, protecting depositors' interests in case of bank failure.
Q.18Easy
If Bank X's Current Ratio is 1.8 and its Quick Ratio is 1.2, what can be inferred about the bank's liquidity position?
Answer: C
A Current Ratio of 1.8 and Quick Ratio of 1.2 indicates the bank can cover current liabilities 1.8 times with all current assets and 1.2 times with only the most liquid assets, suggesting healthy liquidity.
Q.19Easy
In 2024, the RBI mandated that banks maintain a minimum Capital Adequacy Ratio (CAR) of what percentage under Basel III framework?
Answer: B
Under Basel III, banks must maintain a minimum CAR of 10.5%, which includes a 4.5% Tier 1 capital ratio, a 6% Tier 1 capital plus Tier 2 ratio, and a 2.5% capital conservation buffer.
Q.20Easy
A bank processed 50,000 digital transactions in Q1 2024 out of 200,000 total transactions. In Q2, digital transactions increased by 20% while total transactions increased by 10%. What is the new percentage of digital transactions?
Answer: C
Q1: Digital = 50,000; Total = 200,000. Q2: Digital = 50,000 × 1.2 = 60,000; Total = 200,000 × 1.1 = 220,000. New percentage = (60,220000,000) × 100 = 27.27%. However, correct calculation: 60,220000,000 = 0.2727 = 27.27%. Re-checking: Actually 29.41% is derived from different base. The answer is 27.27%.
