Q280. In secured lending, what is meant by collateral?
[SSC MTS, 8 Sep Shift 3 2023]
A. A portfolio managed on behalf of the lender
B. A type of credit card
C. An electronic payments platform
D. An asset given as security against repayment
Answer: (D) An asset given as security against repayment
Explanation: Collateral is property or another acceptable asset pledged to support a loan. When repayment fails, the lender may enforce the security through lawful procedures, reducing credit losses compared with an otherwise unsecured exposure.
Q279. What does an overdraft facility offer a bank customer?
[SSC MTS, 13 Sep Shift 2 2023]
A. A compulsory account-to-account transfer
B. An increased cash withdrawal cap at all ATMs
C. Short-term borrowing beyond the positive account balance
D. A waiver of all loan interest
Answer: (C) Short-term borrowing beyond the positive account balance
Explanation: An overdraft is a sanctioned facility permitting a customer to draw more than the available account balance, up to an agreed limit. It helps meet temporary liquidity needs and usually attracts interest on utilisation.
Q278. In banking terminology, what does ATM stand for?
[SSC MTS, 5 Sep Shift 3 2023]
A. Automated Teller Machine
B. Automated Transaction Management
C. Account Tracking Module
D. All-Time Money
Answer: (A) Automated Teller Machine
Explanation: An automated teller machine provides electronic access to services such as cash withdrawal and balance inquiry without an ordinary branch counter. Many machines use card and PIN authentication, though newer technologies may also support other methods.
Q277. Which comparison between debit and credit cards is correct?
[SSC MTS, 1 Sep Shift 1 2023]
A. Debit cards work only online
B. Credit cards always use a signature while debit cards always use a PIN
C. Debit cards access account funds while credit cards permit borrowing up to a limit
D. Debit cards always have a higher interest rate
Answer: (C) Debit cards access account funds while credit cards permit borrowing up to a limit
Explanation: A debit card normally draws on the cardholder’s deposit-account funds. A credit card provides a revolving credit line with repayment obligations. Both can be used across many physical and online channels.
Q276. The requirement that a bank hold prescribed liquid assets for itself is known as which ratio?
[SSC MTS (2022 cycle), 16 May Shift 3 2023]
A. Marginal stability scheme
B. Statutory Liquidity Ratio
C. Open Market Operations
D. Legal Deposit Ratio
Answer: (B) Statutory Liquidity Ratio
Explanation: The Statutory Liquidity Ratio prescribes a holding of qualifying liquid assets, such as approved government securities, against a defined deposit-liability base. It is distinct from the cash reserves maintained with RBI under CRR.
Q275. Which balance-sheet item is ordinarily the main liability of a commercial bank?
[SSC MTS (2022 cycle), 2 May Shift 3 2023]
A. Deposits accepted from customers
B. Economic rent
C. Loans disbursed
D. Securities owned by the bank
Answer: (A) Deposits accepted from customers
Explanation: A customer deposit represents money owed by the bank to the depositor and is therefore a bank liability. Loans and most investment holdings are assets because they generate contractual claims for the bank.
Q274. Which qualitative credit-control method relies on the central bank persuading commercial banks to act in the public interest?
[SSC MTS (2022 cycle), 17 May Shift 3 2023]
A. Marginal Standing Facility
B. Credit Rationing
C. Moral Suasion
D. Margin Requirements
Answer: (C) Moral Suasion
Explanation: Moral suasion uses guidance and persuasion by a central bank rather than a legally binding change in quantitative reserve requirements or interest rates. It may encourage banks to adjust lending behaviour voluntarily.
Q273. Which assertion about reserve ratios and liquidity is incorrect?
[SSC MTS (2022 cycle), 18 May Shift 1 2023]
A. A higher bank rate can restrain money creation
B. Reducing the CRR necessarily reduces liquidity
C. Increasing the CRR may reduce lendable funds
D. A lower SLR can free liquid resources
Answer: (B) Reducing the CRR necessarily reduces liquidity
Explanation: A reduction in CRR releases funds that banks would otherwise hold at RBI; it normally increases, rather than decreases, banking-system liquidity. Conversely, higher CRR reduces the pool available for loans or investments.
Q272. What was the benchmark minimum lending rate called under an RBI pricing system introduced in 2010?
[SSC MTS (2022 cycle), 13 Jun Shift 3 2023]
A. Base rate
B. Reverse repo rate
C. Repo rate
D. Cash rate
Answer: (A) Base rate
Explanation: The base rate was introduced for banks from July 2010 as a transparent benchmark for domestic lending. Subsequent floating-rate frameworks included MCLR and external benchmarks, so the correct concept is historical to the examination context.
Q271. Which financial institution is particularly associated with assistance to microfinance institutions in India?
[SSC MTS, 12 Sep Shift 3 2023]
A. Department of Economic Affairs
B. Ministry of Corporate Affairs
C. Indian Banks’ Association
D. SIDBI
Answer: (D) SIDBI
Explanation: SIDBI promotes financing and development of MSMEs and has supported the microfinance sector through institutional funding and capacity development. It is separate from RBI’s role as the regulatory authority.
