Banking Exam IBPS PO 3 — Questions and Answers
Question 1: Which type of account in India allows joint operation where 'Either or Survivor' condition means:
- Both account holders must sign every transaction
- Either holder can operate the account, and upon death of one, the survivor gets full rights (Correct answer)
- The account freezes when one holder passes away
- Only the primary holder can make withdrawals
Correct answer: Either holder can operate the account, and upon death of one, the survivor gets full rights
In an 'Either or Survivor' joint account, either holder can transact independently, and the surviving holder inherits full rights upon the other's death.
Question 2: The 'Pradhan Mantri Jan Dhan Yojana' (PMJDY) primarily aims to:
- Provide housing loans to below-poverty-line families
- Ensure universal access to banking facilities for every household (Correct answer)
- Subsidize agricultural equipment for small farmers
- Establish new public sector banks in rural areas
Correct answer: Ensure universal access to banking facilities for every household
PMJDY is a financial inclusion scheme launched in 2014 to provide every Indian household access to a bank account with basic banking services.
Question 3: In reasoning ability, a 'syllogism' question tests the candidate's ability to:
- Solve mathematical word problems
- Draw logical conclusions from given statements regardless of real-world truth (Correct answer)
- Decode coded messages using a given cipher
- Identify the odd one out in a series
Correct answer: Draw logical conclusions from given statements regardless of real-world truth
Syllogisms require candidates to evaluate logical conclusions from premises based purely on logical rules, not factual accuracy.
Question 4: Which among the following is classified as a 'Non-Performing Asset' (NPA)?
- A loan where interest was paid last month
- A loan where interest or principal has been overdue for more than 90 days (Correct answer)
- A fixed deposit that has matured
- A loan fully repaid within the tenure
Correct answer: A loan where interest or principal has been overdue for more than 90 days
An asset becomes NPA when interest or principal payment has remained overdue for a period of more than 90 days for a term loan.
Question 5: The headquarters of the Reserve Bank of India (RBI) is located in:
- New Delhi
- Kolkata
- Mumbai (Correct answer)
- Chennai
Correct answer: Mumbai
The Reserve Bank of India's central office and headquarters have been located in Mumbai since 1937.
Question 6: In the context of banking, 'KYC' stands for:
- Keep Your Currency
- Know Your Customer (Correct answer)
- Key Yield Computation
- Know Your Credit
Correct answer: Know Your Customer
KYC (Know Your Customer) is a mandatory process by which banks verify the identity and address of their customers to prevent fraud and money laundering.
Question 7: A shopkeeper marks up an item by 40% over cost price and then offers a 20% discount. What is the net profit percentage?
- 12% (Correct answer)
- 20%
- 8%
- 16%
Correct answer: 12%
If CP=100, SP after markup=140, after 20% discount SP=140×0.8=112; profit=12%.
Banking Exam IBPS PO 3
Which type of account in India allows joint operation where 'Either or Survivor' condition means: