Question
The Reserve Bank of India (RBI)’s study group,
which recently submitted its report on an external benchmark rate for banks, has revealed several startling and “disconcerting” banking practices, including violation of the RBI guidelines, inflating of base rate and arbitrary adjustment of spreads. Such malpractices, in turn, aided banks in fixing interest rates on various loan products, including home, automobile and corporate loans, at inflated levels despite the sustained cut in the repo rate by the RBI. While the transmission to interest rates on fresh loans (mainly home loans) was significant, it was muted to outstanding loans (base rate and MCLR). ____________________. This led to an inappropriate calculation of the cost of funds and no change in the base rate even as the cost of deposits declined significantly. In other words, even when the RBI has cut repo rate by 200 bps since December 2014, EMIs on home and other loans failed to come down for old customers. Between January 2015 and August 2017, the median base rate of banks declined by only 75 bps against 158 bps decline in the banks’ median term deposit rate, and 195 bps decline in the weighted-average domestic term deposit rate. The study group, headed by Janak Raj, principal adviser, Monetary Policy Department, included four chief general managers from various departments of the RBI. In each of the following questions a short passage is given with one of the lines in the passage missing and represented by a blank. Select the best out of the five choices given to make the passage complete and coherent (Coherent means logically complete and sound)Solution
The correct answer is B
Statement : Some letters are alphabets.
All alphabets are words.
Some letters are consonants.
Conclusion : I. All letters being...
In each of the questions below are given three statements followed by two conclusions numbered I and II. You have to take the given statements to be ...
Statement:Â
All beds are cupboards.
Some beds are tables.
Some tables are pillows.
Conclusion:
I. Some cupboards are...
In the question below there are two conclusions followed by three statements in the options. You have to take the three given statements to be true ev...
Statements:
No Summer is Winter.
Only a few Winter is Autumn
Some Summer are Spring.
Conclusions:
I. All W...
Statements:Â
Only a few Twitter are Meta.
Some Meta are Tiktok.
No Tiktok is Instagram.
Conclusions:
I. Some Twi...
Direction: In the given question a statement is followed by two conclusions numbered I and II. You have to assume everything in the statement to be tru...
Statements:
Some schools are hospitals
Mostly hospitals are courts
Some courts are parlours
Conclusions:
I...
In the question below there are three statements followed by three conclusions I, II and III. You have to take the four given statements to be true eve...
, In the question below some statements are given followed by two conclusions I and II. You have to take the given statements to be true even if they s...
