IBPS Banking & Financial Awareness Questions and Answers

Question 1

What is the primary objective of the Reserve Bank of India (RBI) when it increases the Repo Rate?

Accepted Answer

To control inflation

Answer

To increase the money supply in the economy

Answer

To encourage commercial banks to lend more

Answer

To reduce the cost of borrowing for consumers

Question 2

A small business takes a term loan from a commercial bank. Due to operational difficulties, it fails to pay the Equated Monthly Instalment (EMI) for three consecutive months. The loan account remains overdue on the 91st day. According to RBI guidelines, how will the bank classify this loan account?

Accepted Answer

Non-Performing Asset (NPA)

Answer

Standard Asset

Answer

Doubtful Asset

Answer

Loss Asset

Question 3

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

Accepted Answer

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

Answer

Providing high-interest rate corporate bonds.

Answer

Exclusively targeting salaried individuals in urban areas.

Answer

Mandating a high minimum balance to encourage saving.

Question 4

The regulation and development of the commodity derivatives market in India fall under the purview of which regulatory body?

Accepted Answer

Securities and Exchange Board of India (SEBI)

Answer

Reserve Bank of India (RBI)

Answer

Insurance Regulatory and Development Authority of India (IRDAI)

Answer

Pension Fund Regulatory and Development Authority (PFRDA)

Question 5

A corporate client needs to transfer ₹50 lakhs urgently from their account to a vendor's account in another bank. They require the transfer to be settled individually and instantaneously. Which of the following payment systems would be most suitable for this transaction?

Accepted Answer

Real-Time Gross Settlement (RTGS)

Answer

National Electronic Funds Transfer (NEFT)

Answer

Cheque Truncation System (CTS)

Answer

Immediate Payment Service (IMPS)

Question 6

Which of the following statements accurately describes the primary function of the RBI's Integrated Ombudsman Scheme?

Accepted Answer

To provide a single point of reference for customers to file complaints against regulated entities for deficiency in service.

Answer

To set the interest rates for various loan products offered by banks.

Answer

To conduct annual audits of the financial statements of all scheduled commercial banks.

Answer

To manage the issuance of currency and oversee the nation's credit system.