IBPS Bank PO Exam – Practice Quiz (Set 4 – 20 Questions)
Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. “Fiscal Deficit” of the government is best defined as:
- Total revenue minus total expenditure
- Total borrowing minus total repayment
- Total expenditure minus total receipts excluding borrowings
- Total tax revenue minus non-tax revenue
Correct Answer: C) Total expenditure minus total receipts excluding borrowings
Q2. “Stagflation” refers to a situation of:
- High growth and low inflation
- Low growth and low inflation
- High inflation with stagnant or low economic growth
- Deflation with high growth
Correct Answer: C) High inflation with stagnant or low economic growth
Q3. “NEFT” system settles transactions on what basis?
- Real-time gross basis
- Deferred net settlement in batches
- Once a week
- Only at month-end
Correct Answer: B) Deferred net settlement in batches
Q4. “Financial Literacy” primarily means:
- Ability to read and write English
- Ability to understand, manage, and use financial products responsibly
- Ability to trade in the stock market
- Ability to prepare government budgets
Correct Answer: B) Ability to understand, manage, and use financial products responsibly
Q5. In banking, “Securitization” is the process of:
- Issuing equity shares
- Converting illiquid assets like loans into tradable securities
- Providing security guards to branches
- Locking customer lockers
Correct Answer: B) Converting illiquid assets like loans into tradable securities
Q6. “Market Risk” in banking is primarily associated with:
- Failure of IT systems
- Changes in interest rates, exchange rates, and equity prices
- Frauds by employees
- Default by borrowers
Correct Answer: B) Changes in interest rates, exchange rates, and equity prices
Q7. Which of the following statements about “Mutual Funds” is correct?
- They are deposits with fixed interest rates
- They pool money from investors and invest in diversified securities
- They are only government bonds
- They are savings accounts with higher interest
Correct Answer: B) They pool money from investors and invest in diversified securities
Q8. “Liquidity Risk” for a bank means:
- Risk of not having enough funds to meet obligations as they fall due
- Risk of change in asset prices
- Risk of default by government
- Risk of losing key employees
Correct Answer: A) Risk of not having enough funds to meet obligations as they fall due
Q9. “Coupon Rate” of a bond refers to:
- Market price of the bond
- Face value of the bond
- Annual interest rate paid on the face value
- Yield to maturity
Correct Answer: C) Annual interest rate paid on the face value
Q10. “Primary Market” is a market where:
- Securities are traded among investors
- New securities are issued for the first time
- Only government securities are traded
- Only foreign exchange is traded
Correct Answer: B) New securities are issued for the first time
Q11. In the context of banking, “Co-lending” refers to:
- Two customers sharing one loan
- Banks and NBFCs jointly lending to a borrower as per a pre-agreed arrangement
- Two banks merging with each other
- Two branches of the same bank lending separately
Correct Answer: B) Banks and NBFCs jointly lending to a borrower as per a pre-agreed arrangement
Q12. “Mobile Wallet” is best described as:
- A savings account with cheque book
- A prepaid payment instrument stored in a mobile app
- A fixed deposit linked to mobile number
- A mutual fund product
Correct Answer: B) A prepaid payment instrument stored in a mobile app
Q13. “Cyber Risk” in banks mainly arises from:
- Natural disasters only
- Failure of physical security
- Unauthorized access, hacking, malware, and data breaches
- Branch relocation
Correct Answer: C) Unauthorized access, hacking, malware, and data breaches
Q14. “Capital Market” deals with:
- Short-term funds up to one year
- Long-term funds through equity and debt instruments
- Foreign exchange only
- Retail deposits only
Correct Answer: B) Long-term funds through equity and debt instruments
Q15. “Subsidy” in government finance is:
- A tax collected by government
- A loan given at market interest rate
- Financial assistance given to reduce the burden on a particular group or sector
- A penalty charged for non-compliance
Correct Answer: C) Financial assistance given to reduce the burden on a particular group or sector
Q16. In IBPS PO Reasoning section, “Syllogism” questions test:
- Numerical calculation skills
- Logical deduction based on given statements and conclusions
- Vocabulary strength
- Data interpretation skills
Correct Answer: B) Logical deduction based on given statements and conclusions
Q17. “Data Sufficiency” questions in IBPS PO mainly test:
- Whether the given data is enough to answer the question
- Speed of calculation only
- Descriptive writing
- Grammar accuracy
Correct Answer: A) Whether the given data is enough to answer the question
Q18. In IBPS PO English section, “Cloze Test” refers to:
- Error spotting in sentences
- Paragraph jumbles
- A passage with blanks where appropriate words must be filled
- Reading comprehension questions
Correct Answer: C) A passage with blanks where appropriate words must be filled
Q19. In Quantitative Aptitude, “DI” stands for:
- Direct Interest
- Data Interpretation
- Demand Index
- Discounted Installments
Correct Answer: B) Data Interpretation
Q20. In IBPS PO interview, “Panel” usually consists of:
- One interviewer only
- Two to three members, often including senior bank officers
- Ten or more members
- Only HR consultants from private agencies
Correct Answer: B) Two to three members, often including senior bank officers
