Banking Awareness Practice Set
1. The parameters that invite Prompt Corrective Action from the central bank are-
Answer : Leverage ratio
2. The PCA framework is applicable only to ______________.
Answer : Commercial banks
3. In recent PCA framework, how many Risk Threshold categories are there?
Answer : 3
4. The Banks with a net Non-Performing Asset (NPA) ratio of 6-9 percent will fall under risk category _____________.
Answer : 1
5. Once PCA is triggered by the regulator, the bank faces restrictions on spending money on ________________.
Answer : opening branches, recruiting staff and giving increments to employees
6. Which among the following PSBs is not under PCA?
Answer : Syndicate Bank
7. Which among the following were the two banks on which initially restrictions were imposed.
Answer : IDBI Bank and UCO Bank
8. This year has been a season of putting banks under PCA category. What is the meaning of “P” in PCA?
Answer : Prompt
9. Till date there are how many banks on which PCA has been triggered?
Answer : 10
10. The Banks with a net NPA ratio above 12 percent fall into the category ___________.
Answer : 3