Banking Interview Questions -1
1. What is CAR?
Capital adequacy ratio
2. Define Bank rate.
is the rate of interest which is charged by RBI on its advances to commercial banks. When reserve bank desires to restrict expansion of credit it raises the bank rate there by making the credit costlier to commercial bank.
3. What is the present value of SLR, CRR, CAR, RR, RRR etc
Can refer RBI sites for daily updates policy changes and Rate and Forex conversion rates, http://www.rbi.org.in/
4. What is CRR?
Specifies the percentage of their total deposits the commercial bank must keep with central bank or RBI. Higher the CRR lower will be the capacity of bank to create credit.
5. Define SLR?
Known as Statutorily Liquidity Ratio. Each bank is required statutorily maintain a prescribed minimum proportion of its demand and time liabilities in the form of designated liquid asset.
6. What is RRR (reverse Reporate)
Is the interest rate earned by the bank for lending money to the RBI in exchange of govt. securities or "lender buys securities with agreement to sell them back at a predetermined rate".
7. How can we control the liquidity in system with CRR.?
8. What is an escrow account? When is its required.
9. How much %govt should own to make the company govt owned?
10. What is a liability?
