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RBI Grade B Accounting & Finance Questions
Practise accounting & finance (finance) for the RBI Grade B Officer Examination: 10 multiple-choice questions, each with the correct answer and a worked explanation. Click an option to check it, or “New questions” for another set.
Accounting & Finance practice
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Q1.The CAPM expected return equals:
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Answer: B — Rf + β(Rm − Rf)
Capital Asset Pricing Model: risk-free rate + beta × market risk premium.
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Q2.Find the compound interest on ₹30,000 at 5% per annum for 3 years, compounded annually.
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Answer: C — ₹4,728.75
A = P(1 + R/100)^T = 30,000 × 1.05^3 = 34,728.75; CI = A − P = ₹4,728.75.
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Q3.A company’s net income divided by shareholders’ equity is:
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Answer: A — ROE
Return on equity = net income ÷ shareholders’ equity.
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Q4.₹18,000 is invested at 10% compounded annually. What is it worth after 5 years?
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Answer: D — ₹28,989
FV = PV(1 + r)ⁿ = 18,000 × 1.10^5 = ₹28,989.
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Q5.If interest rates rise, the price of an existing fixed-rate bond generally:
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Answer: B — Falls
Bond prices move inversely to market interest rates.
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Q6.Find the present value of ₹200 received at the end of each year for 8 years at 5%.
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Answer: A — ₹1,293
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 200 × 6.4632 = ₹1,293.
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Q7.Revenue is recognised under accrual accounting when:
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Answer: D — It is earned (performance obligation satisfied)
Under IFRS 15 / ASC 606 revenue is recognised as obligations are satisfied.
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Q8.Find the compound interest on ₹20,000 at 5% per annum for 2 years, compounded annually.
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Answer: B — ₹2,050
A = P(1 + R/100)^T = 20,000 × 1.05^2 = 22,050; CI = A − P = ₹2,050.
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Q9.Depreciation is recorded to:
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Answer: C — Allocate an asset’s cost over its useful life
Depreciation matches the cost of a long-lived asset to the periods it benefits.
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Q10.Find the compound interest on ₹25,000 at 5% per annum for 3 years, compounded annually.
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Answer: A — ₹3,940.63
A = P(1 + R/100)^T = 25,000 × 1.05^3 = 28,940.63; CI = A − P = ₹3,940.63.
How to approach accounting & finance questions
Master the accounting equation, the three financial statements and time value of money: FV = PV(1 + r)ⁿ, PV of an annuity = PMT × [1 − (1 + r)⁻ⁿ]/r. Ratios link the statements.
About RBI Grade B
RBI Grade B Officer Examination — conducted by Reserve Bank of India (RBI). Recruits officers to the Reserve Bank; Phase II tests economic & social issues and finance & management.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
RBI Grade B practice topics
| Topic | Section | Question source |
|---|---|---|
| Economy & Banking Awareness | General awareness | Question bank |
| Accounting & Finance | Finance | Calculated + question bank |
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |