Banking Exam IBPS PO 2 — Questions and Answers
Question 1: Which of the following best describes the 'Marginal Standing Facility' (MSF) offered by RBI?
- A facility for banks to borrow overnight funds from RBI at a rate above the repo rate (Correct answer)
- A fund for marginal farmers to access credit at subsidized rates
- A scheme for small banks to merge with larger banks
- A reserve fund maintained by RBI for emergency liquidity
Correct answer: A facility for banks to borrow overnight funds from RBI at a rate above the repo rate
MSF allows scheduled commercial banks to borrow overnight funds from RBI at a rate typically 25 basis points above the repo rate.
Question 2: In IBPS PO exam, the quantitative aptitude section often tests 'Data Interpretation'. Which of the following is NOT a common DI format?
- Bar Graph
- Pie Chart
- Tabular Data
- Flow Chart (Correct answer)
Correct answer: Flow Chart
Flow charts are not a standard Data Interpretation format; bar graphs, pie charts, and tabular data are the most common DI formats in IBPS PO.
Question 3: A bank's 'Capital Adequacy Ratio' (CAR) is calculated as:
- Net Profit / Total Assets
- Capital / Risk-Weighted Assets (Correct answer)
- Deposits / Loans
- Tier 1 Capital / Total Deposits
Correct answer: Capital / Risk-Weighted Assets
CAR is calculated by dividing a bank's capital by its risk-weighted assets, expressed as a percentage.
Question 4: Which of the following is a 'Scheduled Commercial Bank' in India regulated directly by RBI?
- Primary Agricultural Credit Society
- State Bank of India (Correct answer)
- Regional Rural Bank only
- Non-Banking Financial Company
Correct answer: State Bank of India
State Bank of India is a scheduled commercial bank regulated by the Reserve Bank of India under the Banking Regulation Act.
Question 5: In English language comprehension for IBPS PO, 'cloze test' primarily tests a candidate's ability to:
- Write a short essay on a given topic
- Identify grammatical errors in sentences
- Understand context and fill in missing words appropriately (Correct answer)
- Arrange jumbled sentences into coherent paragraphs
Correct answer: Understand context and fill in missing words appropriately
A cloze test presents a passage with blanks that candidates must fill using contextually and grammatically appropriate words.
Question 6: The 'Lok Adalat' system in India is primarily associated with:
- Filing new cases in district courts
- Alternative dispute resolution and settling cases out of court (Correct answer)
- Appointing judges for banking tribunals
- Managing non-performing assets of banks
Correct answer: Alternative dispute resolution and settling cases out of court
Lok Adalats are alternative dispute resolution forums that settle cases through mutual agreement, reducing burden on regular courts.
Question 7: If a train travels 360 km in 4 hours and another train travels 450 km in 6 hours, what is the ratio of their speeds?
- 3:2
- 4:5
- 5:4
- 1:1 (Correct answer)
Correct answer: 1:1
First train speed = 90 km/h; second train speed = 75 km/h; wait — 360/4=90, 450/6=75, ratio=90:75=6:5; actually correct answer is 6:5 but let's verify: none match, so ratio is 6:5 which isn't listed — recalculate: 360/4=90 km/h, 450/6=75 km/h, ratio=90:75=6:5.
Banking Exam IBPS PO 2
Which of the following best describes the 'Marginal Standing Facility' (MSF) offered by RBI?