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Banking Sample Paper SBI PO (Main) Sample Test Paper-1

  • question_answer
    Statement: In its first bi-monthly policy review, RBI has decided to cut the repo rate by 25 basis points and take measures to ease the liquidity constraints in the banking system. Which of the following negates the above steps taken by the RB1?

    A)  Loans and EMI will become cheaper for retail loans.

    B)  Banks will pay higher interest rate on FD and RD.

    C)  Banks will have to deposit more money with the RBI.

    D)  Rupee will strengthen against other currencies.

    E)  None of these

    Correct Answer: B

    Solution :

    ; If the repo rate goes down, loan rates will go down. In turn, deposit rates will also go down. Thus, 2 negates the given statement.


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