IBPS Bank PO Exam – Practice Quiz (200 Questions)

IBPS Bank PO Exam – Practice Quiz (Set 8 – 20 Questions)

Attempt the following questions and click “Show Answer” to reveal the correct option.

Q1. The primary objective of nationalization of banks in India (1969) was to:

  1. Increase foreign investment in banks
  2. Ensure greater control of credit for priority sectors and social welfare
  3. Privatize rural banking
  4. Allow only private banks to operate
Correct Answer: B) Ensure greater control of credit for priority sectors and social welfare

Q2. “NABARD” primarily focuses on:

  1. Industrial development in urban areas
  2. Agriculture and rural development financing
  3. Regulating stock exchanges
  4. Insurance regulation
Correct Answer: B) Agriculture and rural development financing

Q3. “SEBI” is the regulator for:

  1. Banking sector
  2. Insurance sector
  3. Securities market
  4. Telecom sector
Correct Answer: C) Securities market

Q4. “Credit Creation” by commercial banks mainly depends on:

  1. Cash with customers
  2. Primary and derivative deposits based on reserves
  3. Only capital of the bank
  4. Government subsidies
Correct Answer: B) Primary and derivative deposits based on reserves

Q5. “Bridge financing” is usually used by companies for:

  1. Meeting permanent working capital needs
  2. Short-term funding until long-term funds are available
  3. Paying only dividends
  4. Buying foreign currency
Correct Answer: B) Short-term funding until long-term funds are available

Q6. Which of the following is a qualitative tool of RBI’s monetary policy?

  1. CRR
  2. SLR
  3. Open Market Operations
  4. Moral suasion
Correct Answer: D) Moral suasion

Q7. “Participatory Notes (P-Notes)” are associated with:

  1. Direct tax collection
  2. Overseas investors investing in Indian securities through registered FIIs
  3. Domestic savings accounts
  4. Insurance policies
Correct Answer: B) Overseas investors investing in Indian securities through registered FIIs

Q8. “Elasticity of demand” measures:

  1. Change in supply due to change in demand
  2. Responsiveness of quantity demanded to a change in price
  3. Change in income with change in price
  4. Inflation with respect to GDP
Correct Answer: B) Responsiveness of quantity demanded to a change in price

Q9. “Repo” transaction in money market involves:

  1. Sale of securities with an agreement to repurchase them later
  2. Purchase of goods for resale
  3. Issue of equity shares
  4. Grant of term loan
Correct Answer: A) Sale of securities with an agreement to repurchase them later

Q10. “Crowding out” in economics refers to:

  1. Government borrowing reducing private investment
  2. Increase in exports reducing imports
  3. Rise in inflation reducing money supply
  4. Fall in GDP reducing employment
Correct Answer: A) Government borrowing reducing private investment

Q11. In IBPS PO Quant, “Boats and Streams” questions primarily test:

  1. Knowledge of geometry
  2. Relative speed concepts in upstream and downstream motion
  3. Permutation and combination
  4. Number systems
Correct Answer: B) Relative speed concepts in upstream and downstream motion

Q12. In Reasoning, “Direction Sense” questions test the ability to:

  1. Remember long passages
  2. Track movement and directions (N, S, E, W) to find final position/direction
  3. Calculate simple interest
  4. Solve algebraic equations
Correct Answer: B) Track movement and directions (N, S, E, W) to find final position/direction

Q13. In English, “Phrase Replacement” questions require you to:

  1. Translate a phrase into another language
  2. Replace a highlighted phrase with the most appropriate alternative
  3. Write a long essay
  4. Identify spelling mistakes
Correct Answer: B) Replace a highlighted phrase with the most appropriate alternative

Q14. In General Awareness, “Repo Rate hike” by RBI typically aims to:

  1. Increase money supply and boost inflation
  2. Reduce money supply and control inflation
  3. Have no impact on lending rates
  4. Only affect foreign exchange
Correct Answer: B) Reduce money supply and control inflation

Q15. “Crowdfunding” is a method of raising funds by:

  1. Taking a single large loan from a bank
  2. Raising small amounts of money from a large number of people, typically online
  3. Issuing government bonds
  4. Borrowing only from foreign institutions
Correct Answer: B) Raising small amounts of money from a large number of people, typically online

Q16. In banking, “Haircut” on collateral means:

  1. Waiver of the entire loan
  2. Reduction in the value of collateral considered for lending
  3. Increase in collateral value
  4. Charging higher interest rate
Correct Answer: B) Reduction in the value of collateral considered for lending

Q17. “Financial Stability” in an economy generally implies:

  1. High inflation and high growth
  2. Absence of bank runs, market crashes, and severe disruptions in financial intermediaries
  3. Only high stock market returns
  4. Zero government borrowing
Correct Answer: B) Absence of bank runs, market crashes, and severe disruptions in financial intermediaries

Q18. In IBPS PO interview, “situational questions” are asked primarily to assess:

  1. Formula memorization
  2. Real-life decision-making, judgment, and behavior
  3. Typing speed
  4. Knowledge of coding
Correct Answer: B) Real-life decision-making, judgment, and behavior

Q19. For IBPS PO preparation, maintaining an “error log” of questions helps you to:

  1. Attempt fewer questions
  2. Track mistakes, identify patterns, and avoid repeating them
  3. Skip revision
  4. Focus only on strong areas
Correct Answer: B) Track mistakes, identify patterns, and avoid repeating them

Q20. In the descriptive paper, a good “letter to the bank manager” should:

  1. Be very long and informal
  2. Follow proper format, be concise, clear, and polite in tone
  3. Include personal stories unrelated to the issue
  4. Use slang and abbreviations
Correct Answer: B) Follow proper format, be concise, clear, and polite in tone
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