IBP Test MCQs Past Papers pdf free download for promotion test. Banking test mcqs with answers for bank test preparation.
Q1.What does “TT” stand for in the banking system?
Answer: Telegraphic transfer
Q2.What term refers to the central bank’s control of money supply to achieve economic goals?
Answer: Monetary policy
Q3.Which option is not a function of a central bank?
Answer: All above are functions of a central bank
Q4.What type of transaction is a “Repo” for the central bank?
Answer: Borrowing
Q5.How do Repo and Reverse Repo interest rates compare?
Answer: Reverse Repo is higher than Repo
Q6.What’s the term for replacing an existing loan with another?
Answer: Refinancing
IBP Test MCQs Past Papers pdf download free:
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Q7.What kind of risk is associated with the risk-free interest rate?
Answer: Zero risk
Q8.What is the benchmark interest rate for short-term loans between global banks?
Answer: LIBOR (London InterBank Offered Rate)
Q9.Who manages the monetary policy of a country?
Answer: Central bank
Q10.How does a central bank differ from a commercial bank?
Answer: I and III only (I. It is the bank of the state; III. It oversees the commercial banking system)
Q11.What’s the interest rate for commercial banks to borrow from the central bank?
Answer: Policy rate
Q12.How does the government raise money through Treasury Bills?
Answer: Borrow
Q13.Which investment is considered the safest?
Answer: Treasury Bills
