IBPS Bank PO Exam – Practice Quiz (Set 1 – 20 Questions)
Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. IBPS conducts the Bank PO exam primarily for recruitment to which posts?
- Clerical Assistants
- Probationary Officers / Management Trainees
- Specialist Officers
- Subordinate Staff
Correct Answer: B) Probationary Officers / Management Trainees
Q2. Which of the following sections is NOT part of the IBPS PO Preliminary examination?
- Reasoning Ability
- Quantitative Aptitude
- English Language
- General Awareness with Special Reference to Banking
Correct Answer: D) General Awareness with Special Reference to Banking
Q3. Which of the following is the full form of IBPS?
- Institute of Banking Personnel Selection
- Indian Bank Personnel Service
- International Banking and Payment System
- Institute for Banking Promotion and Services
Correct Answer: A) Institute of Banking Personnel Selection
Q4. CRR (Cash Reserve Ratio) is maintained by scheduled commercial banks with:
- State Bank of India
- NABARD
- Reserve Bank of India
- SEBI
Correct Answer: C) Reserve Bank of India
Q5. The main objective of monetary policy in India is to:
- Control inflation and stabilize the currency
- Increase direct taxes
- Provide subsidies to exporters only
- Regulate foreign universities
Correct Answer: A) Control inflation and stabilize the currency
Q6. In banking terminology, “KYC” stands for:
- Know Your Capital
- Know Your Customer
- Keep Your Credit
- Know Your Collateral
Correct Answer: B) Know Your Customer
Q7. Which of the following is NOT a function of the Reserve Bank of India?
- Issuer of currency notes
- Banker to the Government
- Controller of credit
- Granting direct retail loans to the public
Correct Answer: D) Granting direct retail loans to the public
Q8. “Priority Sector Lending” does NOT include which of the following sectors?
- Agriculture
- Micro, Small & Medium Enterprises
- Export Credit
- Luxury Real Estate Projects
Correct Answer: D) Luxury Real Estate Projects
Q9. “NPA” in banking stands for:
- Non-Promotional Account
- Non-Performing Asset
- Net Priority Allocation
- National Payment Agreement
Correct Answer: B) Non-Performing Asset
Q10. In the context of banking, a “Demand Draft” is:
- A negotiable instrument issued by an individual on another individual
- A prepaid instrument issued by a bank, payable on demand
- A type of credit card
- A bond issued by the government
Correct Answer: B) A prepaid instrument issued by a bank, payable on demand
Q11. “RTGS” in banking transactions stands for:
- Real Time Gross Settlement
- Rapid Transfer of Government Securities
- Rate of Transfer of Gross Savings
- Real Time Government Settlement
Correct Answer: A) Real Time Gross Settlement
Q12. The “Bank Rate” is best defined as the rate at which:
- Commercial banks lend to their prime customers
- RBI lends long-term funds to commercial banks
- Government borrows from commercial banks
- Banks offer interest on savings accounts
Correct Answer: B) RBI lends long-term funds to commercial banks
Q13. Which of the following is a direct tax in India?
- Goods and Services Tax (GST)
- Excise Duty
- Customs Duty
- Income Tax
Correct Answer: D) Income Tax
Q14. “Basel III” norms are related to which aspect of banking?
- Customer service standards
- Capital adequacy and risk management
- Foreign exchange regulations
- Microfinance operations
Correct Answer: B) Capital adequacy and risk management
Q15. “Financial Inclusion” primarily aims at:
- Providing banking services only to corporate clients
- Providing affordable financial services to all sections of society
- Increasing foreign investment in banks
- Promoting only digital payments
Correct Answer: B) Providing affordable financial services to all sections of society
Q16. In a balance sheet of a bank, “Deposits” are shown under:
- Assets
- Liabilities
- Contingent liabilities
- Reserves and surplus
Correct Answer: B) Liabilities
Q17. The main objective of introducing “Marginal Cost of Funds based Lending Rate (MCLR)” was to:
- Make deposit rates fixed
- Improve transmission of policy rates to lending rates
- Increase banks’ profit margins
- Regulate foreign exchange
Correct Answer: B) Improve transmission of policy rates to lending rates
Q18. “SLR” in Indian banking system stands for:
- Statutory Liquidity Ratio
- Special Lending Rate
- Standard Liability Ratio
- Scheduled Lending Reserve
Correct Answer: A) Statutory Liquidity Ratio
Q19. The “Lead Bank Scheme” was introduced primarily to:
- Encourage foreign banks to open branches in India
- Promote area-specific rural development through a designated bank
- Allow banks to merge freely
- Regulate capital market activities
Correct Answer: B) Promote area-specific rural development through a designated bank
Q20. In banking, “Collateral” refers to:
- The interest charged on a loan
- The credit score of the borrower
- An asset pledged by the borrower to secure a loan
- The repayment schedule of the loan
Correct Answer: C) An asset pledged by the borrower to secure a loan
