IBPS Reading Comprehension Passages 4

Question 1

Passage: 'The credit-deposit (CD) ratio measures the proportion of deposits a bank lends out. A very high CD ratio may signal overleveraging, while a very low ratio suggests underutilisation of resources.' Which inference is CORRECT based on the passage?

Accepted Answer

An optimal CD ratio balances lending activity with resource efficiency

Answer

Since both extremes—too high or too low—are flagged as problematic, the passage implies an optimal balance is ideal.

Question 2

A passage reads: 'Inflation erodes the purchasing power of money, disproportionately affecting fixed-income earners and those with savings in low-interest accounts.' The word 'disproportionately' implies that inflation:

Accepted Answer

Harms certain groups more than others

Answer

'Disproportionately' means unequally or to a greater degree, indicating that fixed-income earners and savers are harder hit by inflation.

Question 3

Passage: 'Account aggregators act as intermediaries that allow customers to share their financial data securely across institutions, fostering a more informed credit assessment process.' What is the role of account aggregators?

Accepted Answer

They facilitate secure sharing of financial data between institutions

Answer

The passage describes account aggregators as intermediaries enabling secure financial data sharing across institutions.

Question 4

A passage states: 'The Kisan Credit Card (KCC) scheme provides short-term credit to farmers for crop cultivation, post-harvest expenses, and allied activities at concessional interest rates.' What is the PRIMARY purpose of KCC?

Accepted Answer

Offering subsidised credit for agricultural and allied needs of farmers

Answer

The passage states KCC provides short-term, concessional credit to farmers for cultivation and related activities.

Question 5

Passage: 'Digital lending platforms leverage alternative data—such as utility bill payments and e-commerce transaction history—to assess creditworthiness of borrowers who lack formal credit histories.' What PROBLEM do digital lenders address?

Accepted Answer

The difficulty in assessing creditworthiness of borrowers without traditional credit histories

Answer

Digital lenders use alternative data to evaluate borrowers who cannot be assessed through traditional credit histories.

IBPS - Institute of Banking Personnel Selection Practice Test

IBPS - Institute of Banking Personnel Selection Practice Test

IBPS Reading Comprehension Passages 4