IBP Test MCQs Past Papers pdf

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

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