Banking Exam IBPS PO 4 — Questions and Answers
Question 1: The 'SWIFT' code used in international banking transactions stands for:
- System for Worldwide Interbank Financial Telecommunication
- Society for Worldwide Interbank Financial Telecommunication (Correct answer)
- Secure Worldwide International Finance Transfer
- Standard Wire International Fund Transfer
Correct answer: Society for Worldwide Interbank Financial Telecommunication
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, a messaging network used for international money transfers.
Question 2: Which of the following is the correct definition of 'Reverse Repo Rate'?
- The rate at which RBI lends money to commercial banks
- The rate at which commercial banks park their excess funds with RBI (Correct answer)
- The rate charged by banks on home loans
- The interest rate on foreign currency deposits
Correct answer: The rate at which commercial banks park their excess funds with RBI
Reverse repo rate is the rate at which the RBI absorbs liquidity from banks by borrowing money from them.
Question 3: In IBPS PO computer knowledge, RAM refers to:
- Read Access Memory
- Random Access Memory (Correct answer)
- Rapid Application Module
- Remote Access Management
Correct answer: Random Access Memory
RAM (Random Access Memory) is volatile primary storage used by computers to store data that is actively being used or processed.
Question 4: A sum of Rs. 5,000 is invested at 8% per annum simple interest for 3 years. What is the total amount at maturity?
- Rs. 5,800
- Rs. 6,000
- Rs. 6,200 (Correct answer)
- Rs. 5,400
Correct answer: Rs. 6,200
SI = (5000 × 8 × 3)/100 = Rs. 1,200; Total amount = 5000 + 1200 = Rs. 6,200.
Question 5: The IBPS PO mains exam includes a 'Descriptive Test' that primarily assesses:
- Multiple-choice questions on banking awareness
- Letter writing and essay writing skills in English (Correct answer)
- Speed typing and data entry accuracy
- Verbal reasoning through spoken responses
Correct answer: Letter writing and essay writing skills in English
The IBPS PO Mains Descriptive Test evaluates written English communication through a formal letter and an essay, each carrying specific marks.
Question 6: Which of the following is an example of 'Moral Suasion' by RBI?
- Increasing the Cash Reserve Ratio
- Issuing directives to banks to control lending in specific sectors (Correct answer)
- Buying government securities in open market
- Changing the bank rate officially
Correct answer: Issuing directives to banks to control lending in specific sectors
Moral suasion involves RBI persuading or pressuring banks through informal means, directives, and advice to follow certain credit policies without formal legal action.
Question 7: In a coded language, if BANK is written as CBOL, then how is LOAN written in that code?
- MPBO (Correct answer)
- MPBN
- NQCP
- MPAO
Correct answer: MPBO
Each letter is shifted forward: B→C(+1), A→B(+1), N→O(+1), K→L(+1); so L→M, O→P, A→B, N→O = MPBO.
Banking Exam IBPS PO 4
The 'SWIFT' code used in international banking transactions stands for: