IBPS Bank PO Exam – Practice Quiz (Set 3 – 20 Questions) Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. “Inflation” in an economy is best described as: Increase in production of goods and services Decrease in general price level of goods and services Increase in general price level of goods and services over a period of time Increase in foreign exchange reserves Show Answer Correct Answer: C) Increase in general price level of goods and services over a period of time
Q2. “Open Market Operations (OMO)” are conducted by RBI mainly to: Regulate foreign trade Buy and sell government securities to control liquidity Issue new currency notes Provide subsidies to banks Show Answer Correct Answer: B) Buy and sell government securities to control liquidity
Q3. Which of the following instruments is used by RBI as a quantitative tool of monetary policy? Margin requirements Moral suasion Credit rationing Cash Reserve Ratio (CRR) Show Answer Correct Answer: D) Cash Reserve Ratio (CRR)
Q4. “Bridge Loan” is generally taken to: Finance long-term infrastructure projects only Provide short-term funds until a long-term financing arrangement is finalized Repay government taxes Invest in foreign securities Show Answer Correct Answer: B) Provide short-term funds until a long-term financing arrangement is finalized
Q5. “White Label ATMs” are: ATMs owned and operated by banks only ATMs owned and operated by non-bank entities ATMs exclusively for foreign currency transactions ATMs installed inside bank branches only Show Answer Correct Answer: B) ATMs owned and operated by non-bank entities
Q6. “SWIFT” is primarily related to: Domestic NEFT transfers International financial messaging and fund transfers Retail internet banking only Rural credit monitoring Show Answer Correct Answer: B) International financial messaging and fund transfers
Q7. “T/Re(f)erm Deposit” can be best described as: A deposit that can be withdrawn on demand A deposit with fixed maturity and fixed interest rate A deposit linked to equity market A deposit that earns no interest Show Answer Correct Answer: B) A deposit with fixed maturity and fixed interest rate
Q8. “LAF” in the context of RBI’s operations stands for: Liquidity Adjustment Facility Loan and Finance Local Adjustment Fund Long-term Advance Facility Show Answer Correct Answer: A) Liquidity Adjustment Facility
Q9. “Balance of Payments (BoP)” of a country records: Only exports and imports of goods Only capital flows All economic transactions between residents of a country and the rest of the world Only government borrowings Show Answer Correct Answer: C) All economic transactions between residents of a country and the rest of the world
Q10. In the context of risk in banking, “Credit Risk” refers to: Risk of loss due to changes in interest rates Risk of loss due to failure of a counterparty to meet obligations Risk of frauds by employees Risk of operational failure of IT systems Show Answer Correct Answer: B) Risk of loss due to failure of a counterparty to meet obligations
Q11. “Know Your Customer (KYC)” norms are primarily designed to: Ensure high profit for banks Prevent money laundering and identity theft Determine the interest rate on deposits Regulate foreign exchange rates Show Answer Correct Answer: B) Prevent money laundering and identity theft
Q12. “Risk-weighted assets” in banking are used in calculation of: Net interest margin CRR requirement Capital adequacy ratio (CRAR/CRAR) Profit after tax Show Answer Correct Answer: C) Capital adequacy ratio (CRAR/CRAR)
Q13. Which of the following types of risk is associated with failure of processes, people, and systems? Market risk Operational risk Credit risk Liquidity risk Show Answer Correct Answer: B) Operational risk
Q14. “Call Money Market” deals with: Long-term government bonds Short-term funds lent and borrowed between banks for 1 to 14 days Retail loans only Foreign currency loans Show Answer Correct Answer: B) Short-term funds lent and borrowed between banks for 1 to 14 days
Q15. In banking, “Hypothecation” refers to: Charge created on movable property where possession is with the lender Charge created on immovable property Charge created on movable property where possession remains with the borrower Loan given without any security Show Answer Correct Answer: C) Charge created on movable property where possession remains with the borrower
Q16. “Green Banking” primarily focuses on: Providing only online services Promoting environmentally sustainable practices in banking operations Issuing green-colored credit cards Providing loans only to agriculture sector Show Answer Correct Answer: B) Promoting environmentally sustainable practices in banking operations
Q17. “Letter of Credit (LC)” is commonly used in: Retail savings deposits International trade transactions Personal loans Employee salary accounts Show Answer Correct Answer: B) International trade transactions
Q18. “Factoring” is a financial service related to: Foreign exchange trading Purchase of receivables of a client by a financial intermediary Issuing shares to the public Providing lockers to customers Show Answer Correct Answer: B) Purchase of receivables of a client by a financial intermediary
Q19. “Bridge financing” is typically arranged for: Covering temporary cash flow mismatches Long-term plant and machinery purchase only Foreign exchange reserves management Government tax payments Show Answer Correct Answer: A) Covering temporary cash flow mismatches
Q20. In IBPS PO interview, “STAR” technique is best used for: Answering situational/behavioral questions (Situation, Task, Action, Result) Calculating interest Preparing GK notes Designing bank marketing campaigns Show Answer Correct Answer: A) Answering situational/behavioral questions (Situation, Task, Action, Result)
