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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer Correct Answer: B) Two to three members, often including senior bank officers
