The following table shows the percentage (%) increase in income and…
2024
The following table shows the percentage (%) increase in income and expenditure of various types of Banks, namely PSU Banks, Old Private Banks, New Private Banks and Foreign Banks over the previous year during the year 2021-2022 and 2022-2023. Based on the data in the table, answer the questions that follow :
Income and expenditure details of Banks
Bank type | Percentage Increase in Income over previous year (2021-2022) | Percentage Increase in Income over previous year (2022-2023) | Percentage Increase in Expenditure over previous year (2021-2022) | Percentage Increase in Expenditure over previous year (2022-2023) |
PSU Banks | 15% | 17% | 13% | 22% |
Old Private Banks | 20% | 14% | 15% | 17% |
New Private Banks | 44% | 37% | 42% | 44% |
Foreign Banks | 9% | 12% | 4% | 11% |
Note: In the above table, the meaning of any figure x% is as follows :
(I) x% in 2021-2022 means income or expenditure in 2021-2022 is x% more than that in 2020-2021.
(II) x% in 2022-2023 means income as expenditure in 2022-2023 is x% more than that is 2021-2022
In 2021-2022, if the income of Foreign Banks is four times its expenditure, then what will be the approximate ratio of income to the expenditure of foreign Banks in 2022-2023 ?
- A.
1 : 4
- B.
4: 1
- C.
5: 1
- D.
1 : 5
Show answer & explanation
Correct answer: B
Let the expenditure of Foreign Banks in 2021-2022 be E. Then, income is 4E. For 2022-2023, Income increases by 12% to 4E * 1.12 = 4.48E. Expenditure increases by 11% to E * 1.11 = 1.11E. The ratio of Income to Expenditure is 4.48E / 1.11E ≈ 4.036, which is approximately 4:1.