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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer Correct Answer: C) An asset pledged by the borrower to secure a loan
