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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer 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 Show Answer Correct Answer: B) Improving time management, accuracy, and exam strategy
