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.22Easy
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.23Easy
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?
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.29Medium
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.30Medium
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.31Medium
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?
Which regulatory framework mandates that banks maintain a minimum Liquidity Coverage Ratio (LCR)?
Answer: C
Basel III framework requires banks to maintain a minimum Liquidity Coverage Ratio of 100% to ensure they have sufficient high-quality liquid assets.
Q.33Medium
In a distribution chart, Bank X's retail deposits increased from 35% to 42% of total deposits. What is the percentage point increase?
Answer: A
Percentage point change = 42% - 35% = 7 percentage points (not a 7% increase, but an increase of 7 percentage points)
Q.34Medium
What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY) launched in 2015?
Answer: B
PMMY aims to provide collateral-free loans to micro and small enterprises through banks, supporting the growth of small businesses and self-employment.
Q.35Hard
A bank's Return on Assets (ROA) is 1.5% and its net profit is ₹3,000 crores. What is its total asset base?
Answer: B
ROA = (Net Profit / Total Assets) × 100. Therefore, Total Assets = Net Profit / (ROA/100) = 03000.015 = ₹2,00,000 crores
Q.36Hard
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?
Answer: A
New Advances = 500000 × 1.15 = ₹5,75,000 crores. New Deposits = 500000 × 1.12 = ₹5,60,000 crores. Ratio = 560000575000 = 1.027 ≈ 1.03
Q.37Hard
According to RBI's Monetary Policy 2024-2025, what is the repo rate corridor framework (Repo Rate ± corridor width)?
Answer: C
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.
Q.38Hard
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?
Answer: C
LTV:CAC ratio = 50000:2500 = 20:1, indicating that each customer generates 20 times the acquisition cost in lifetime value.
Q.39Medium
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?
Answer: A
NIM = (Net Interest Income / Total Assets) × 100. Therefore, NII = (2.1008) × 5,00,000 = ₹14,000 crores
Q.40Medium
Which of the following is NOT a component of the RBI's Financial Stability Report assessment framework?
Answer: C
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.
