FREE IBPS Banking and Financial Awareness Questions and Answers

Question 1

A business needs to make a high-value payment of ₹10 lakhs to a supplier immediately.
The transaction must be settled on a one-to-one basis and not in batches.
Which of the following payment systems would be most suitable for this requirement?

Accepted Answer

Real-Time Gross Settlement (RTGS)

Answer

National Electronic Funds Transfer (NEFT)

Answer

Immediate Payment Service (IMPS)

Answer

Unified Payments Interface (UPI)

Question 2

Which of the following is a key feature of the Pradhan Mantri Jan Dhan Yojana (PMJDY) aimed at promoting financial inclusion?

Accepted Answer

Offering a basic savings account with a RuPay debit card and overdraft facility.

Answer

Provision of a mandatory credit card with a high limit.

Answer

Requirement of a significant initial deposit to open an account.

Answer

Exclusively available for residents of urban areas.

Question 3

The Reserve Bank of India (RBI) introduced the Standing Deposit Facility (SDF) as a monetary policy instrument. What is the primary purpose of the SDF?

Accepted Answer

To absorb excess liquidity from the banking system without needing collateral.

Answer

To inject liquidity into the banking system by providing collateralized loans.

Answer

To finance government expenditure through direct lending.

Answer

To set the interest rate for long-term loans given to corporate entities.

Question 4

Which of the following is considered a money market instrument?

Accepted Answer

Commercial Paper (CP)

Answer

Equity Shares

Answer

Corporate Bonds

Answer

Government Securities (G-Secs) with 10-year maturity

Question 5

The Insolvency and Bankruptcy Code (IBC), 2016 was enacted to consolidate the legal framework for insolvency resolution in India. What is a primary objective of the IBC?

Accepted Answer

To provide a time-bound process for resolving insolvency to maximize the value of assets.

Answer

To ensure that all failing businesses are immediately liquidated.

Answer

To prioritize the recovery of government taxes over all other debts.

Answer

To allow debtors to indefinitely delay repayment proceedings.

Question 6

Which of the following Acts provides the Reserve Bank of India (RBI) with the power to license, regulate, and supervise banking companies in India?

Accepted Answer

Banking Regulation Act, 1949

Answer

Reserve Bank of India Act, 1934

Answer

Companies Act, 2013

Answer

Securities and Exchange Board of India Act, 1992

A business needs to make a high-value payment of ₹10 lakhs to a supplier immediately.The transaction must be settled on a one-to-one basis and not in batches.Which of the following payment systems would be most suitable for this requirement?

A business needs to make a high-value payment of ₹10 lakhs to a supplier immediately.
The transaction must be settled on a one-to-one basis and not in batches.
Which of the following payment systems would be most suitable for this requirement?