IBPS Bank PO Exam – Practice Quiz (Set 7 – 20 Questions)
Attempt the following questions and click “Show Answer” to reveal the correct option.
Q1. The headquarters of the Reserve Bank of India (RBI) is located in:
- New Delhi
- Mumbai
- Kolkata
- Chennai
Correct Answer: B) Mumbai
Q2. “Scheduled Bank” in India is one which is included in:
- Banking Regulation Act, 1949
- Second Schedule of RBI Act, 1934
- Companies Act, 2013
- Negotiable Instruments Act, 1881
Correct Answer: B) Second Schedule of RBI Act, 1934
Q3. “Overnight money” in the money market refers to funds borrowed or lent for:
- Less than 1 year
- 1 to 3 months
- Exactly 1 day
- More than 1 year
Correct Answer: C) Exactly 1 day
Q4. “Bank Ombudsman Scheme” is intended to:
- Regulate bank interest rates
- Resolve customer grievances against banks
- Issue currency notes
- Supervise stock exchanges
Correct Answer: B) Resolve customer grievances against banks
Q5. “MICR” code printed on cheques is used mainly for:
- Electronic clearing of cheques
- Determining interest rate
- Verifying customer’s PAN
- Allocating locker numbers
Correct Answer: A) Electronic clearing of cheques
Q6. “NSDL” and “CDSL” are associated with:
- Currency trading
- Securities depository services (Demat accounts)
- Insurance regulation
- Bank branch licensing
Correct Answer: B) Securities depository services (Demat accounts)
Q7. “Call Option” in financial markets gives the holder the right to:
- Only sell an asset at a specified price
- Only buy an asset at a specified price
- Both buy and sell an asset at market price
- Borrow money from the issuer
Correct Answer: B) Only buy an asset at a specified price
Q8. “Forward contract” is:
- A standardized contract traded on exchanges
- A customized OTC contract to buy/sell an asset at a future date at agreed price
- A government bond
- A type of mutual fund
Correct Answer: B) A customized OTC contract to buy/sell an asset at a future date at agreed price
Q9. “Blue-chip companies” are generally:
- Newly formed start-ups
- Well-established, financially sound companies with stable earnings
- Only government-owned enterprises
- Companies with only foreign ownership
Correct Answer: B) Well-established, financially sound companies with stable earnings
Q10. “Debenture” is best described as:
- A type of equity share
- A long-term debt instrument acknowledging a loan to a company
- A savings deposit
- A mutual fund unit
Correct Answer: B) A long-term debt instrument acknowledging a loan to a company
Q11. “Bridge loan” is usually classified as:
- Working capital term loan
- Short-term interim loan till long-term funding is arranged
- Long-term infrastructure loan
- Personal consumption loan
Correct Answer: B) Short-term interim loan till long-term funding is arranged
Q12. “Consortium lending” refers to:
- Single bank financing an entire large project
- Multiple banks jointly financing a large borrower/project
- Only NBFCs financing corporates
- Government financing only
Correct Answer: B) Multiple banks jointly financing a large borrower/project
Q13. “Leverage” in finance generally means:
- Use of own funds only
- Use of borrowed funds to increase potential return on equity
- Reduction of debt to zero
- Only issuing new shares
Correct Answer: B) Use of borrowed funds to increase potential return on equity
Q14. “Zero Coupon Bond” is a bond that:
- Pays interest annually
- Pays interest monthly
- Is issued at a discount and pays no periodic interest
- Pays interest only on maturity plus face value
Correct Answer: C) Is issued at a discount and pays no periodic interest
Q15. “Money laundering” typically involves:
- Paying taxes on income
- Concealing the origin of illegally obtained money by passing it through legitimate channels
- Depositing salary in a bank
- Buying mutual funds through banks
Correct Answer: B) Concealing the origin of illegally obtained money by passing it through legitimate channels
Q16. In IBPS PO Quant, “Alligation” is a method used primarily for:
- Time and distance problems
- Mixture and average problems
- Simple interest only
- Number series
Correct Answer: B) Mixture and average problems
Q17. In Reasoning, “Coding-Decoding” questions test:
- Arithmetic accuracy
- Ability to identify letter/number pattern used to code words
- Grammar skills
- General knowledge
Correct Answer: B) Ability to identify letter/number pattern used to code words
Q18. In English, “Para Completion” questions require you to:
- Delete extra lines from a passage
- Choose a sentence that logically completes a given paragraph
- Translate paragraphs
- Write a summary of a story
Correct Answer: B) Choose a sentence that logically completes a given paragraph
Q19. In General Awareness, “Disinvestment” refers to:
- Government increasing its stake in PSUs
- Government selling its stake in public sector enterprises
- Private companies buying each other
- Foreign companies exiting India
Correct Answer: B) Government selling its stake in public sector enterprises
Q20. For IBPS PO preparation, “accuracy before speed” means:
- Attempt all questions, even if many are guesses
- Focus first on solving correctly, then gradually increase speed
- Skip difficult sections
- Ignore negative marking
Correct Answer: B) Focus first on solving correctly, then gradually increase speed
