Frequently Asked Technical Banking Questions – 15
Now as the interview dates of IBPS PO are scheduled we bring to you very common Technical banking interview questions with out set No 15 based on technical questions asked in interview. We will be updating material and Videos on a regular basis to help maximum number of candidates to cherish their dreams.
Usually the time interval for interview for RRb exams and IBPS PO lies between 7-9 minutes and more depending on the interest you are generating.
- What do you mean by Capital Adequacy Ratio?
Answer :: Capital Adequacy Ratio can be defined as the ratio of the bank’s risk vs her capital. National regulators track a bank’s CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements. It is a measure of a bank’s capital. It is expressed as a percentage of a bank’s risk weighted credit exposures. This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world
- What are the current rates of CRR and SLR?
Answer:: Sir CRR is 4% and SLR is 21.5%
- What is micro-finance?
Answer:: Micro-financing can be understood as small finance meant to promote small scale activities to people of lower sections of society to earn their bread and butter. In MUDRA scheme launched by the government the scheme of Shishu (Loans upto Rs50000/-) and Kishore ( upto Rs200000/-) comes under micro financing. These loans can be for small activities meant to promote employment and increase earning capacity of people. These schemes are also meant to encourage entrepreneurship activities among masses
- What do you mean by inflation and deflation?
Answer:: Sir Inflation means increase in rates of articles. Inflation occurs due to various reasons like demand and supply proportion, black marketing, lowering value of currency etc. Deflation is reverse of inflation in which the prices of goods comes below the base price.
- Is Deflation beneficial?
Answer:: Sir, deflation in normal circumstances is not beneficial for a country. It is an indicator that the demand in a country is coming down, and there is a liquidity shortage in the market. Deflation is also an indicator that the purchasing power of the citizens has fallen down. Deflation adversly affects the manufacturing industry and thus hamper job activity in the country .
But sometimes deflation is due to the fall in prices of goods like petroleum (like currently in India) which can be beneficial for a crude importor country.