IBPS Bank PO Exam – Practice Quiz (Set 2 – 20 Questions)
Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. The IBPS PO Main examination includes which of the following additional sections compared to the Prelims?
- Computer Aptitude and General Awareness
- Descriptive Writing and Data Interpretation
- General Awareness (Banking/Economy) and Descriptive Writing
- Quantitative Aptitude and English Language
Correct Answer: C) General Awareness (Banking/Economy) and Descriptive Writing
Q2. “Repo Rate” is the rate at which:
- RBI borrows money from commercial banks
- Commercial banks borrow money from RBI against government securities
- Government borrows from RBI
- Banks lend to large corporate clients
Correct Answer: B) Commercial banks borrow money from RBI against government securities
Q3. “Reverse Repo Rate” helps RBI primarily to:
- Inject liquidity into the banking system
- Absorb liquidity from the banking system
- Control foreign exchange rates
- Regulate export-import trade
Correct Answer: B) Absorb liquidity from the banking system
Q4. A “Current Account” in a bank is generally meant for:
- Individuals seeking high interest on savings
- Fixed long-term deposits
- Frequent business transactions with no interest or very low interest
- Government securities investment
Correct Answer: C) Frequent business transactions with no interest or very low interest
Q5. “MUDRA” scheme is primarily related to:
- Housing loans
- Micro and small business loans
- Education loans abroad
- Agricultural warehousing
Correct Answer: B) Micro and small business loans
Q6. The institution that insures bank deposits in India is:
- SEBI
- IRDAI
- DICGC
- NABARD
Correct Answer: C) DICGC
Q7. Which of the following is NOT a type of “crossing” in cheques?
- General crossing
- Special crossing
- Account payee crossing
- Bearer crossing
Correct Answer: D) Bearer crossing
Q8. “IFSC” code used in electronic fund transfer stands for:
- Indian Financial System Code
- International Fund Settlement Code
- Indian Forex Settlement Code
- Institutional Financial Security Code
Correct Answer: A) Indian Financial System Code
Q9. “Digital Banking” primarily refers to:
- Banking only at ATMs
- Banking services delivered through electronic channels like internet, mobile, and cards
- Banking through physical branches only
- Banking services restricted to large corporates
Correct Answer: B) Banking services delivered through electronic channels like internet, mobile, and cards
Q10. In banking, “Overdraft” facility means:
- Fixed deposit for a fixed term
- Withdrawal of more money than the balance in current account, up to an approved limit
- A special recurring deposit
- A type of demand draft
Correct Answer: B) Withdrawal of more money than the balance in current account, up to an approved limit
Q11. “Creditworthiness” of a borrower is generally assessed using:
- Only the borrower’s age
- Credit history, repayment capacity, income, and existing liabilities
- Number of bank accounts held
- Type of mobile phone used
Correct Answer: B) Credit history, repayment capacity, income, and existing liabilities
Q12. “CASA” deposits of a bank refer to:
- Current Account, Savings Account
- Corporate Account, Staff Account
- Capital Account, Savings Account
- Cash Account, Securities Account
Correct Answer: A) Current Account, Savings Account
Q13. “Microfinance” is primarily targeted towards:
- Large corporates
- High net-worth individuals
- Low-income individuals and small entrepreneurs without access to formal banking
- Foreign institutional investors
Correct Answer: C) Low-income individuals and small entrepreneurs without access to formal banking
Q14. “Negotiable Instrument” under the NI Act does NOT include:
- Cheque
- Promissory note
- Bill of exchange
- Fixed Deposit Receipt
Correct Answer: D) Fixed Deposit Receipt
Q15. “CRAR” (Capital to Risk-Weighted Assets Ratio) is a measure of:
- Profitability of a bank
- Liquidity position of a bank
- Capital adequacy and financial strength of a bank
- Operational efficiency of a bank
Correct Answer: C) Capital adequacy and financial strength of a bank
Q16. In the context of IBPS PO exam, the descriptive paper generally tests:
- Only grammar rules
- Essay and letter writing skills
- Translation from regional language to English
- Mathematical derivations
Correct Answer: B) Essay and letter writing skills
Q17. Which of the following is a key feature of “Term Loan” to a corporate borrower?
- Repayable on demand without any schedule
- Short-term credit for a few days only
- Loan for a fixed period with a defined repayment schedule
- Non-repayable grant
Correct Answer: C) Loan for a fixed period with a defined repayment schedule
Q18. “Kisan Credit Card (KCC)” scheme is designed mainly to:
- Provide crop insurance to farmers
- Provide flexible credit limits to farmers for agricultural needs
- Subsidize fertilizer prices
- Offer pensions to senior citizens
Correct Answer: B) Provide flexible credit limits to farmers for agricultural needs
Q19. “SARFAESI Act” empowers banks primarily to:
- Introduce new taxes
- Take possession and sell secured assets of defaulting borrowers without court intervention
- Issue currency notes
- Regulate stock exchange activities
Correct Answer: B) Take possession and sell secured assets of defaulting borrowers without court intervention
Q20. In banking, “EMI” stands for:
- Equated Monthly Interest
- Equal Mortgage Installment
- Equated Monthly Installment
- Equal Money Investment
Correct Answer: C) Equated Monthly Installment
