Banking Recruitment Tests IBPS PO MT XVI Mock Test PDF Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF Questions Available Here at: https://www.easy-quizzz.com/in/practice-interview-questions/banking-recruitment- tests/ibps-po-mt-xvi-mock-test/quiz.html Enrolling now you will get access to 1252 questions in a unique set ofIBPS PO MT XVI Mock Test Question 1 A retailer deposits cash received from customers into its current account. Which immediate function is the bank performing? Options: A. Creating a loan from the deposit B. Accepting a deposit for safe custody and use C. Underwriting the retailer’s sales D. Collecting a bill on the retailer’s behalf Answer: B Explanation: The bank is accepting a deposit, one of the core functions of a commercial bank. A current account is designed for frequent transactions, so the funds can be used for payments and withdrawals subject to the account terms. The bank does not become an underwriter or bill-collection agent merely because cash is deposited. Question 2 A bank’s overnight funds are in surplus, and the RBI wants to absorb liquidity without supplying securities as collateral. Which facility best fits this operation? Options: A. Fixed-rate repo Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/ B. Standing Deposit Facility C. Marginal Standing Facility D. Open market purchase Answer: B Explanation: The Standing Deposit Facility (SDF) enables the RBI to absorb liquidity from banks without providing collateral. A repo is used to inject liquidity against eligible collateral, while the MSF is a borrowing facility for banks needing funds. An outright open market purchase injects liquidity rather than absorbing it. The SDF serves as the floor of the liquidity adjustment corridor. Question 3 A customer pays a merchant by scanning a QR code and approving a request in a UPI app. Which description best captures the roles involved? Options: A. The payer's bank sends a card authorisation to the merchant's acquiring bank B. The payer's UPI app initiates an instruction that is routed through the UPI system to the relevant banks C. The QR code itself transfers stored value directly to the merchant D. The merchant's bank uses NEFT to debit the payer's account without a payment instruction Answer: B Explanation: A UPI app is an interface for initiating a payment instruction; it does not itself hold or transfer the bank- account funds merely because a QR is scanned. UPI routes the instruction between participating institutions, while the payer authorises the debit and the payee is credited through their respective banks. A QR code generally conveys payment details, not money. Question 4 A bank officer proposes opening an account for a company using only the identity documents of the employee who submitted the application. Which corrective step best addresses the CDD gap? Options: A. Verify the company’s legal existence and identify the natural persons who ultimately own or control it B. Treat the submitting employee as the beneficial owner because the employee represents the company Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/ C. Obtain a second identity document from the employee and proceed without examining the company D. Classify the account as low risk because the applicant is an employee Answer: A Explanation: CDD for a legal-entity customer is not satisfied merely by identifying the representative who appears at the branch. The bank must establish the entity’s identity and legal status, verify the authority of the person acting for it, and identify its ultimate beneficial owners or controllers under applicable requirements. The representative’s identity remains relevant, but it does not replace entity-level and ownership-level due diligence. Question 5 A borrower shows rising sales and accounting profit, but its operating cash flow is persistently negative because receivables and inventory are expanding faster than payables. In appraisal, the most defensible conclusion is to: Options: A. Treat reported profit as sufficient evidence of repayment capacity B. Examine the quality and timing of working-capital conversion before sizing debt C. Replace cash-flow analysis with collateral valuation D. Assume the deficit is temporary because sales are rising Answer: B Explanation: Debt is serviced from cash, not accounting profit alone. Rapid growth in receivables and inventory can absorb cash even when sales and earnings rise, and persistent negative operating cash flow may indicate weak collection, excess stock, or underfunded growth. The appraiser should test the operating cycle and sustainable cash generation before deciding whether additional borrowing is supportable. Question 6 A bank reviews a PMJDY account portfolio and finds that many accounts are used mainly to receive government benefits, while customers rarely visit branches. Which design feature most directly supports both this use and broader access to transactions? Options: A. A basic deposit account combined with access channels such as a RuPay card and business correspondent services Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/ B. A fixed-term deposit combined with mandatory branch-based withdrawals C. A credit-only account requiring a prior loan relationship D. A pension account that accepts only periodic contributions Answer: A Explanation: PMJDY is intended to widen access to basic banking, and its account framework can support benefit credits as well as transactions through channels such as RuPay cards and business correspondents. A benefit credit alone is not full financial inclusion; accessible deposits, withdrawals and other services matter too. Fixed deposits, credit-only products and pension contributions do not perform this basic-account function. Question 7 A bank observes that headline CPI inflation is easing, but food prices remain volatile and core inflation is sticky. For an inflation-targeting decision, which interpretation is most defensible? Options: A. The headline decline proves broad-based disinflation, so policy rates should be cut immediately. B. Food volatility can affect headline inflation while sticky core inflation signals that underlying price pressure still needs assessment. C. Core inflation is the sole measure used for the statutory target, so headline CPI can be disregarded. D. A policy decision should use WPI because it excludes all volatile consumer prices. Answer: B Explanation: India's flexible inflation-targeting framework is defined in terms of headline CPI inflation, not core CPI or WPI alone. Core inflation is nevertheless useful diagnostically because it helps assess persistent underlying pressures after volatile items are considered. A falling headline rate caused mainly by temporary food movements does not by itself establish that broad inflation pressure has eased enough to justify a policy change. Question 8 A small retailer keeps cash received from customers for rent, supplier payments and other frequent business transactions. Which account is the most suitable primary operating account? Options: Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/ A. Savings account, because frequent transactions earn savings interest B. Current account, because it is designed for frequent business transactions C. Term deposit, because it provides immediate payment facilities D. Recurring deposit, because it permits flexible business withdrawals Answer: B Explanation: A current account is generally suited to businesses and other customers making frequent receipts and payments. Its operational purpose is transaction convenience, not earning a fixed return. A savings account may support routine transactions but is not the usual primary business operating product; term and recurring deposits are designed to hold money rather than support frequent payments. Question 9 A term loan instalment and interest remain unpaid for 91 days after their due date. No special agricultural classification applies. How should the account ordinarily be classified? Options: A. Standard, because classification waits until the next quarterly review B. Non-performing, because the relevant amount has remained overdue for more than 90 days C. Substandard only after the borrower is served a formal demand notice D. Doubtful immediately because the overdue period exceeded 90 days Answer: B Explanation: For a term loan, an account ordinarily becomes an NPA when interest or an instalment of principal remains overdue for more than 90 days. The fact that a demand notice has not yet been served does not postpone prudential recognition. Crossing the NPA threshold does not itself make the account doubtful: substandard and doubtful are subsequent asset-quality categories based on the duration and nature of the NPA classification. Question 10 At year-end, a firm reports total assets of 840 lakh and total liabilities, including provisions, of 510 lakh. The balance sheet also shows share capital of 200 lakh and reserves of 130 lakh. Which conclusion follows from the accounting equation? Options: A. The figures reconcile because equity is 330 lakh and assets equal liabilities plus equity Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/ B. The figures do not reconcile because provisions cannot be included in liabilities C. The figures reconcile only if reserves are excluded from equity D. The figures do not reconcile because share capital must equal total assets less reserves Answer: A Explanation: Equity comprises share capital and accumulated reserves, giving 200 lakh + 130 lakh = 330 lakh. Adding this to liabilities of 510 lakh gives 840 lakh, equal to reported assets. Provisions are recognized obligations and are included in liabilities for this reconciliation; they are not excluded merely because their amount or settlement timing may involve estimation. Would you like to see more? Don't miss ourIBPS PO MT XVI Mock Test PDF file at: https://www.easy-quizzz.com/in/practice-interview-questions/banking-recruitment- tests/ibps-po-mt-xvi-mock-test-pdf/ Interview Questions Interview Questions IBPS PO MT XVI Mock Test PDF https://www.easy-quizzz.com/in/