Banking Exam IBPS PO 5

Question 1

The 'Basel III' norms are internationally agreed banking regulations primarily aimed at:

Accepted Answer

Strengthening bank capital requirements and improving risk management

Answer

Basel III is a global regulatory framework developed to strengthen bank capital adequacy, stress testing, and market liquidity risk management.

Question 2

Which of the following correctly describes 'Priority Sector Lending' (PSL) obligations in India?

Accepted Answer

Banks must allocate 40% of net bank credit to specified priority sectors like agriculture and MSMEs

Answer

RBI mandates domestic commercial banks to lend at least 40% of Adjusted Net Bank Credit (ANBC) to priority sectors including agriculture, MSMEs, and weaker sections.

Question 3

In reading comprehension for IBPS PO, an 'inference' question asks you to:

Accepted Answer

Conclude information that is implied but not explicitly stated

Answer

Inference questions require candidates to understand the implied meaning beyond what is explicitly written in the passage.

Question 4

If the ratio of simple interest earned on two investments is 3:5 and the principals are equal with the same time period, what is the ratio of their interest rates?

Accepted Answer

3:5

Answer

Since SI = (P × R × T)/100 and P and T are equal for both, SI is directly proportional to R; so the ratio of rates equals the ratio of SI = 3:5.

Question 5

The 'Negotiable Instruments Act' in India governs which of the following?

Accepted Answer

Promissory notes, bills of exchange, and cheques

Answer

The Negotiable Instruments Act, 1881 governs the use of promissory notes, bills of exchange, and cheques in commercial transactions.

Banking Exam Practice Test

Banking Exam Practice Test

Banking Exam IBPS PO 5