Bissoy.com
Doctors Medicines MCQs Q&A

Since the last one year, after a 125 basis point reduction in repo rate by the Reserve Bank of India, banking institutions have been making a demand to reduce interest rates on small saving schemes. Finally, the government announced yesterday a reduction in interest rates on small saving schemes to bring them on par with fixed deposit interest rates. Which one of the following statements can be inferred from the given passage?

Since the last one year, after a 125 basis point reduction in repo rate by the Reserve Bank of India, banking institutions have been making a demand to reduce interest rates on small saving schemes. Finally, the government announced yesterday a reduction in interest rates on small saving schemes to bring them on par with fixed deposit interest rates. Which one of the following statements can be inferred from the given passage? Correct Answer The government sometimes takes into consideration the demands of banking institutions before reducing the interest rates on small saving schemes.

The correct answer is 'The government sometimes takes into consideration the demands of banking institutions before reducing the interest rates on small saving schemes.'

Key Points

  • Option 1 is incorrect as the statement says that the banking institutions had been demanding the reduction 'since the last one year' before it was fulfilled, implying that it is not something that happens usually. Hence, it cannot be said that whenever the Reserve Bank of India reduces the repo rate, the interest rates on small saving schemes are also reduced.
  • Option 2 is incorrect. The phrase 'to bring them on par with fixed deposit interest rates' in the statement implies that the interest rates on small saving schemes are not always maintained on par with fixed deposit interest rates.
  • Option 4 is incorrect as there is no information provided in the statement to support this inference. 
  • Option 3 is the correct answer.

Related Questions

Mohan deposit certain amount in bank saving account for 6 year which give simple interest of x% annually and invest same principle in fix deposit for 2 year which gives interest rate 10% and compounded annually, total interest he get from saving account to fix deposit in the ratio of 6 : 7, if bank provide (x + 3)% rate annually on saving account deposit, then difference of interest arise Rs.7,500 between saving account and fix deposit after respective time period, what amount he invest in fix deposit?
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: A shortage of bank branches and ATMs across India’s hinterland is holding back Prime Minister Narendra Modi’s financial inclusion efforts and risks angering rural voters ahead of elections next year. After taking office in 2014, Modi set an ambitious target to open a bank account for every household to ensure welfare funds flow directly to India’s poor, while improving access to credit and insurance programs. He pushed policies that helped bring 310 million people into the formal banking system in just four years, according to the World Bank. Based on the arguments stated below and he information stated above, which of the following arguments state the reason for the problem, ‘But many of India’s villages still lack bank branches or ATMs to help service new customers, while the pace of building new financial infrastructure has actually slowed’.  Arguments: I. Because Modi’s government effectively forced poor citizens into the banking system by linking some welfare benefits to bank accounts, villagers have ended up stuck in long queues and struggling with ATMs that often run out of cash or break down.  II. With an election due next year, the mismatch between the government’s policies and the rural banking system is generating frustration among a key slice of India’s electorate. III. The banking system struggled to keep up, while some gains proved temporary. Nearly half of Indian bank accounts were inactive in 2017, meaning they weren’t used at all in the previous 12 months
Examine the following statements: A. Repo rate is the rate at which the Reserve Bank of India borrows money from commercial banks within India. B. Reverse repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. C. The RBI increased the repo-rate and reverse repo rate by 25 basis points to 6.5% and 6.25%, respectively on August 1, 2018 Choose the correct answer:
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: In a bid to find a successor to founder CEO Rana Kapoor, The Yes Bank has formed a five member panel including two members from outside the bank, less than a week after Reserve Bank of India (RBI) cut short his tenure until January 31 2019. In a press release sent to the exchanges late on Tuesday evening, Yes Bank said that the “search and selection committee” would comprise of three members of the bank’s nomination and remuneration committee and also two external members, which the bank did not specify.  Courses of action: I. However, the board has requested the Reserve Bank of India (RBI) to grant an extension to Kapoor up to September 2019 ‘for finalization of audited financial statements for fiscal year ending March 2019 and in order for the statutory AGM process to be completed’. II. The board has also recommended the elevation of senior group presidents Rajat Monga and Pralay Mondal as executive directors ‘to ensure a long term succession plan within Yes Bank, and given the demonstrated track record of these two senior leaders’. All this will be subject to RBI approval.  III. The panel will comprise of five members and will focus on find a successor to Rana Kapoor.
The following sentences have been given in a jumbled manner. Un-jumble the sentences and answer the option which describes the order of sentences in a correct manner.  A. India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign, the country's banking system may not be robust enough to do the job on its own B. India's micro, small and medium enterprise(MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call. C. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. D. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises E. One official said that the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.
Which among the following is NOT a correct statement?  1. The Reserve Bank of India worked as Central Bank of Burma till April 1947 2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948 3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975 4. The Reserve Bank of India commenced its operations on April 1, 1935 
In the question below, a passage is given followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Passage: India's retail inflation jumped from 6.09% in June to 6.93% in July as per the National Statistical Office (NSO) data released on August 13, 2020. The rise is fuelled mainly due to the surge in food prices, which soared by 10%. RBI, in its MPC meeting last week, had kept the repo rate unchanged with an accommodative policy stance. Courses of action: I. RBI must hike the repo rate in the upcoming MPC. II. The government must stop payments to farmers under PM-KISAN yojana as the hike in Food Prices will give them more remunerative prices. III. All citizens should start cultivating food on their own to counter food inflation.
In the question below, is given a passage followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Passage: One of the biggest problems facing ABC Bank of India is the attrition of its Probationary Officers post their job confirmation. The bank spends crores of rupees in their training during Probation, but after confirmation in service, many of the Probationary officers quit the Bank. While some of them jump to more lucrative jobs in the Private Sector Banks, some prefer to quit even without finding another job. Courses of action:  I. ABC Bank must make the Probationary Officers sign a bond upon joining, asking them to serve the bank for a minimum of 10 years after confirmation. II. New HR policy must be introduced to recover training costs from Probationers who serve the bank for less than 5 years. III. The Bank must appoint an internal committee to find out the reasons for the attrition of Probationary Officers.
In the question below, a passage is given followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Passage: India has witnessed a rising trend in online banking frauds. Both the absolute number of frauds and the cumulative amount involved have been steadily increasing despite repeated awareness campaigns undertaken by banks and the RBI over the years through social media, SMS and E-mails. This poses a serious challenge to the safety of the digital ecosystem and thus the digital economy concept. Courses of action:  I. The government must set up an Insurance agency to reimburse the amount lost on online frauds. All online banking customers must be asked to pay a premium for the same. II. RBI must come up with a comprehensive mechanism for Banks to evaluate the Online Banking Knowledge of the customer before giving them such products. III. RBI must make it easier to report online frauds and more customers must be encouraged to file complaints on Online Banking frauds.
After GST and demonetisation, rising interest rates are set to hurt SMEs. Interest rates for loans against property (LAP) extended to small and medium sized enterprises (SMEs) are set to rise in the coming months of 2018 ‘ Rising interest rates, in addition to the muted operating environment for small businesses in India, will lead to an increase in delinquencies on LAP extended to SMEs’. The introduction of the goods and services tax (GST) in July 2017 and the government's demonetization policy have placed stress on the SME sector, which rising interest rates will exacerbate. Which of the following can be logically inferred from the statement above?