Category Archives: Bank Interview Questions

Why the banks are going to lend the money at varied interest rate? | Bank Questions

Banks are going to lend the money at varied interest rates depending upon the purpose, amount and period of loan.

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What is Bank Rate? | Bank Questions

Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are … Continue reading

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What is SLR Rate? | Bank Questions

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI … Continue reading

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What is CRR Rate? | Bank Questions

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase … Continue reading

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What is Reverse Repo Rate? | Bank Questions

This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking … Continue reading

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What is a Repo Rate? | Bank Questions

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at … Continue reading

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What is Sub-prime crisis? | Bank Questions

The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having low credit rating.

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What is Fiscal Deficit? | Bank Questions

It is the difference between the government’s total receipts (excluding borrowings)

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What is SENSEX and NIFTY? | Bank Questions

SENSEX is the short term for the words “Sensitive Index” and is associated with the Bombay (Mumbai) Stock Exchange (BSE). The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of BSE. … Continue reading

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What is LAF ? | Bank Questions

Liquidity Adjustment Facility (LAF) was introduced by RBI during June, 2000 in phases, to ensure smooth transition and keeping pace with technological upgradation.

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