In a bank's balance sheet, what does NPA (Non-Performing Asset) refer to?
Answer: B
NPA is a classification for loans where principal or interest payment is overdue by 90 days or more
Q.5Medium
If a bank's CAR (Capital Adequacy Ratio) is 15%, what does this indicate?
Answer: D
CAR of 15% means the bank has adequate capital buffer. Regulatory minimum is 10.5%, so 15% indicates compliance and strength
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Q.6Medium
What is the current Statutory Liquidity Ratio (SLR) requirement set by RBI as per 2024-2025?
Answer: B
As of 2024, RBI maintains SLR requirement at 18% of Net Demand and Time Liabilities (NDTL)
Q.7Medium
If a bank's Net Interest Margin (NIM) increased from 2.8% to 3.2%, what does this signify?
Answer: B
An increase in NIM indicates the bank is earning more profit on its lending and deposit operations
Q.8Medium
What does the term 'Markdown' mean in banking context?
Answer: C
Markdown refers to the spread between the bid-ask prices in securities trading by banks
Q.9Medium
According to the 2024-2025 pattern, what is the current CRR (Cash Reserve Ratio) in India?
Answer: B
As of 2024, RBI has maintained CRR at 4% of NDTL for banks
Q.10Medium
If Bank's total assets are ₹10,00,000 crores and equity is ₹50,000 crores, what is the leverage ratio?
Answer: D
Leverage Ratio = Total Assets / Equity = 10,00,50000,000 = 20:1
Q.11Medium
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)?
Answer: A
A = 50,000(1.12)^2 = 50,000 × 1.2544 = ₹62,720
Q.12Medium
A bank's total advances are ₹8,00,000 crores. If Gross NPA (Non-Performing Assets) is 2.5%, what is the value of Gross NPAs?
If a bank's Cost-to-Income Ratio (CIR) decreased from 52% to 48%, what does this indicate?
Answer: B
Lower CIR indicates better operational efficiency as the bank is spending less to generate each unit of income. A decrease from 52% to 48% shows improvement.
Q.16Medium
What is 'Markdown' in the context of banking and securities markets?
Answer: A
Markdown refers to the reduction in the price of a security when a dealer sells it to a customer, representing the dealer's profit margin.
Q.17Medium
According to the RBI's 2024-2025 guidelines, what is the current Cash Reserve Ratio (CRR) for scheduled commercial banks?
Answer: B
As per RBI's latest monetary policy, the CRR for scheduled commercial banks is maintained at 4.0% of their net demand and time liabilities.
Q.18Medium
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?
