IBPS Bank PO Exam – Practice Quiz (Set 5 – 20 Questions)
Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. “Foreign Direct Investment (FDI)” refers to:
- Investment by residents in domestic mutual funds
- Investment by foreign entities in the domestic capital market only
- Investment by a foreign entity in the ownership/management of a business in another country
- Short-term trade credit between companies
Correct Answer: C) Investment by a foreign entity in the ownership/management of a business in another country
Q2. “Foreign Portfolio Investment (FPI)” is best described as:
- Direct control over management of a foreign company
- Investment in financial assets like shares and bonds without management control
- Investment only in real estate abroad
- Investment in gold by residents
Correct Answer: B) Investment in financial assets like shares and bonds without management control
Q3. “Twin Balance Sheet problem” in the Indian context primarily refers to stress in:
- Government finances and household budgets
- Bank balance sheets and corporate balance sheets
- RBI balance sheet and trade balance
- Stock market and foreign exchange market
Correct Answer: B) Bank balance sheets and corporate balance sheets
Q4. “Prompt Corrective Action (PCA)” framework of RBI is applicable to:
- Insurance companies
- Commercial banks showing signs of financial stress
- Mutual funds
- Stock exchanges
Correct Answer: B) Commercial banks showing signs of financial stress
Q5. “Insolvency and Bankruptcy Code (IBC)” mainly aims to:
- Regulate stock market trading
- Provide a time-bound resolution framework for stressed assets and insolvency
- Control inflation
- Regulate foreign trade
Correct Answer: B) Provide a time-bound resolution framework for stressed assets and insolvency
Q6. “Credit Information Companies” like CIBIL mainly:
- Issue credit cards directly to customers
- Maintain and share credit history and scores of borrowers
- Provide insurance policies
- Regulate bank interest rates
Correct Answer: B) Maintain and share credit history and scores of borrowers
Q7. “Shadow Banking” generally refers to:
- Illegal money lending
- Banking-like activities by non-bank financial intermediaries outside normal banking regulation
- Banking conducted at night
- Only chit fund activities
Correct Answer: B) Banking-like activities by non-bank financial intermediaries outside normal banking regulation
Q8. “Small Finance Banks” have been set up in India mainly to:
- Finance only large infrastructure projects
- Provide basic banking services to underserved and unserved sections, including small businesses
- Undertake only foreign exchange business
- Grant loans only to big corporates
Correct Answer: B) Provide basic banking services to underserved and unserved sections, including small businesses
Q9. “Payments Banks” are allowed to:
- Accept demand deposits and provide remittance services but not lend
- Provide full-fledged term loans to corporates
- Issue credit cards with credit limits
- Deal in derivatives and complex products
Correct Answer: A) Accept demand deposits and provide remittance services but not lend
Q10. “Universal Banking” implies:
- Banks restricted only to savings accounts
- Banks providing a wide range of financial services like commercial banking, investment services, and insurance
- Banks working only in rural areas
- Banks focusing only on foreign currency business
Correct Answer: B) Banks providing a wide range of financial services like commercial banking, investment services, and insurance
Q11. “Floating interest rate” on a loan means:
- Interest rate remains fixed throughout the loan tenure
- Interest rate changes in line with a benchmark rate over time
- No interest is charged
- Interest is charged only at the end of tenure
Correct Answer: B) Interest rate changes in line with a benchmark rate over time
Q12. In banking, “Moratorium period” refers to:
- The time period when bank operations are closed
- The time during which the borrower is not required to make repayments
- The period of highest interest rate
- The period after loan closure
Correct Answer: B) The time during which the borrower is not required to make repayments
Q13. “Tax Deducted at Source (TDS)” is:
- A type of indirect tax
- Tax collected by deducting a certain amount at the time of making specified payments
- Tax levied only on imports
- Tax paid only by companies
Correct Answer: B) Tax collected by deducting a certain amount at the time of making specified payments
Q14. “Fiscal Policy” of a government mainly relates to:
- Money supply and interest rates
- Taxation, public expenditure, and borrowing
- Foreign exchange reserves
- Stock market regulations
Correct Answer: B) Taxation, public expenditure, and borrowing
Q15. “Monetary Policy Committee (MPC)” in India is responsible for:
- Finalizing the Union Budget
- Determining the policy repo rate and related monetary policy stance
- Deciding GST rates
- Regulating stock exchanges
Correct Answer: B) Determining the policy repo rate and related monetary policy stance
Q16. “Human Development Index (HDI)” does NOT directly include which of the following components?
- Life expectancy at birth
- Education (years of schooling)
- Per capita income
- Foreign exchange reserves
Correct Answer: D) Foreign exchange reserves
Q17. In IBPS PO Reasoning, “Blood Relation” questions test:
- Arithmetic skills
- Ability to deduce family relationships based on given statements
- English vocabulary
- Computer knowledge
Correct Answer: B) Ability to deduce family relationships based on given statements
Q18. In the English section, “Sentence Rearrangement” questions require you to:
- Translate sentences
- Arrange jumbled sentences to form a coherent paragraph
- Correct spellings
- Fill in prepositions only
Correct Answer: B) Arrange jumbled sentences to form a coherent paragraph
Q19. In Quantitative Aptitude, “Simple Interest” is calculated on:
- Principal only
- Principal plus interest
- Market value of collateral
- Principal minus tax
Correct Answer: A) Principal only
Q20. In IBPS PO exam preparation, “Mock Tests” are most useful for:
- Only memorizing formulas
- Improving time management, accuracy, and exam strategy
- Learning long theoretical answers
- Skipping revision
Correct Answer: B) Improving time management, accuracy, and exam strategy
