The term 'Non-Performing Asset' (NPA) in banking refers to: MCQ with Answer and Explanation

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The term 'Non-Performing Asset' (NPA) in banking refers to:

A. Government securities held by banks

B. Cash reserves of the bank

C. An asset that generates income regularly

D. A loan on which interest or principal is overdue for a specified period

Answer: Option D

Solution (By JKSSB Mock Tests)

An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Kisan Vikas Patra' is a:

A. stock market instrument

B. bank account

C. crop insurance scheme

D. small savings certificate scheme

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Correct Answer: Option D

Explanation:
Kisan Vikas Patra is a small savings certificate scheme.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is classified under the primary sector?

A. Mining

B. Banking

C. Transport

D. Automobile manufacturing

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Correct Answer: Option A

Explanation:
The primary sector includes agriculture, mining, fishing and forestry.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Digital rupee' is a central bank digital currency that has been launched by RBI in a pilot.

A. False

B. Only for banks

C. Only for foreign trade

D. True

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Correct Answer: Option D

Explanation:
RBI has launched pilot projects for the Digital Rupee, a central bank digital currency.

This question belongs to: Economy GK Economy Set 1

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