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Quizzes > Business & Finance > Finance & Economics

Ready to Ace Your Bank Exam Test? Take the Free Mock Quiz Now!

Think you can conquer this bank exam mock test? Start your practice now!

Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration with bank icons, coins, puzzle pieces on golden yellow background for free bank exam quiz challenge

Ready to conquer the bank exam test that stands between you and your dream banking career? Dive into our engaging bank exam mock test, designed to sharpen your skills across reasoning, numerical ability, and key banking exam questions - all within a fun, time-friendly format. Whether you're revisiting fundamental principles or looking for fresh practice, this bank exam practice test brings real-world scenarios to life. Challenge yourself with interactive banking trivia questions and fine-tune your strategy in our dynamic banking quiz. Jump in now to boost confidence, assess your readiness, and power up your study plan. Are you up for the challenge?

What does RBI stand for?
Royal Bank of India
Reserve Bank of India
Regional Bank of India
Retail Bank of India
The Reserve Bank of India (RBI) is the central banking institution of India, responsible for issuing currency and regulating monetary policy. It was established in 1935 under the Reserve Bank of India Act to oversee monetary stability in the country. The name reflects its national mandate to act as a reserve bank for commercial banks, the government, and the economy. RBI About Us
Which deposit can be withdrawn by the depositor without any prior notice to the bank?
Fixed Deposit
Demand Deposit
Recurring Deposit
Term Deposit
Demand deposits are funds held at a bank account from which deposited funds can be withdrawn at any time without any notice. This includes checking and savings accounts, allowing depositors immediate access to their money. Unlike fixed or term deposits, there is no lock-in period or penalty for withdrawal. Investopedia: Demand Deposit
What does KYC stand for in banking regulations?
Key Your Credit
Know Your Customer
Keep Your Currency
Know Your Collateral
KYC stands for Know Your Customer, a regulatory requirement for banks to verify the identity of their clients. It helps prevent identity theft, financial fraud, money laundering, and terrorist financing. Financial institutions must collect and validate customer identity documents before opening accounts. Investopedia: KYC
Which is the highest denomination of Indian currency note currently in circulation?
?500
?1,000
?2,000
?200
The ?2,000 note is currently the highest denomination in circulation, introduced by the Reserve Bank of India in 2016 after demonetization. It features Mahatma Gandhi's image and enhanced security features. Lower denominations remain widely used for daily transactions. RBI Currency Information
What does CRR stand for in banking terms?
Cash Reserve Ratio
Credit Risk Ratio
Capital Reserve Requirement
Current Rate of Return
Cash Reserve Ratio (CRR) is the percentage of a bank's total deposits that must be held in reserve with the RBI. It is a monetary policy tool used to control liquidity and inflation. Banks do not earn any interest on CRR balances, making it a key cost of holding deposits. Investopedia: CRR
The Banking Ombudsman Scheme deals with:
Corporate fraud by banks
Customer complaints against banks
Inter-bank settlement issues
Formulation of monetary policy
The Banking Ombudsman Scheme, introduced by the RBI, provides an expeditious and cost-free mechanism for resolving customer complaints against banks. It covers issues like service delays, unauthorized charges, and refusal to honor commitments. Aggrieved customers can file complaints with the Ombudsman without court fees. RBI Ombudsman Scheme
Which of the following is not a negotiable instrument?
Cheque
Promissory Note
Bill of Exchange
Bank Statement
Negotiable instruments, as defined under the Negotiable Instruments Act, include promissory notes, bills of exchange, and cheques. They are transferable documents guaranteeing payment of a specific amount. A bank statement is merely a record of transactions and does not qualify as an instrument for payment transfer. Investopedia: Negotiable Instrument
What does RTGS stand for in digital payments?
Real Time Group Service
Ready Transfer Gross System
Real Time Gross Settlement
Real Transfer Gross Settlement
RTGS stands for Real Time Gross Settlement, a system for continuous, real-time settlement of fund transfers individually on a gross basis. It is mainly used for high-value transactions and provides near-instantaneous confirmation. The RBI operates RTGS for secure, large-value interbank transfers. RBI: RTGS FAQs
The SARFAESI Act empowers banks to:
Provide subsidized housing loans
Recover secured debts without court intervention
Impose negative interest rates
Insure bank deposits
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act allows banks and financial institutions to enforce security interest and recover dues without the court's involvement. It streamlines the recovery process by enabling asset reconstruction and securitisation. The Act was introduced in 2002 to address rising non-performing assets. Investopedia: SARFAESI Act
What is the minimum paid-up capital requirement for Small Finance Banks in India?
?50 crore
?100 crore
?200 crore
?500 crore
The RBI’s licensing guidelines for Small Finance Banks, issued in 2015, stipulate a minimum paid-up capital of ?200 crore at the time of commencement. This requirement ensures that these banks have sufficient capital buffer to engage in financial inclusion activities. Small Finance Banks focus on serving underserved and unserved sectors. RBI Licensing Guidelines
Which ratio indicates the proportion of liquid assets a bank must maintain against its total deposits?
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Capital Adequacy Ratio (CAR)
Liquidity Coverage Ratio (LCR)
The Statutory Liquidity Ratio (SLR) requires banks to maintain a specified portion of their net demand and time liabilities in liquid assets like cash, gold, or government securities. This ensures liquidity and financial stability. Unlike CRR, where funds are held with the RBI, SLR assets are held by the bank itself. RBI: SLR Guidelines
NEFT transactions are settled in:
Real-time continuous settlement
Half-hourly batches
Hourly batches
Daily batches
National Electronic Funds Transfer (NEFT) processes transactions in half-hourly settlement batches. The RBI has designated specific time slots throughout the day during which NEFT transactions are processed. This batch system distinguishes NEFT from RTGS, which settles transactions individually in real time. RBI: NEFT FAQs
Priority sector lending includes all of the following except:
Housing loans up to a specified limit
Foreign portfolio investments
Microcredit
Agriculture
Priority Sector Lending (PSL) mandates banks to lend a portion of their loans to sectors like agriculture, micro, small enterprises, and housing up to defined limits. It does not include foreign portfolio investments, which are investments in domestic financial assets by foreign entities. The PSL framework aims to ensure inclusive credit flow. RBI PSL Guidelines
When the RBI raises the repo rate, it means:
Commercial bank lending rates decrease
Cost of borrowing from the RBI becomes higher
Banks must maintain higher cash with the RBI
Cash Reserve Ratio is lowered
The repo rate is the rate at which the RBI lends to commercial banks against government securities. Increasing the repo rate makes borrowing costlier for banks, which usually leads to higher lending rates for customers. It is a key tool to control inflation and liquidity in the economy. Investopedia: Repo Rate
Under Basel III norms, the minimum Common Equity Tier 1 (CET1) capital ratio is:
4.5%
6%
8%
10%
Basel III regulations require banks to maintain a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5% of risk-weighted assets. This strengthens bank capital requirements and protects against financial shocks. Additional buffers may raise the effective CET1 requirement further. BIS Basel III
LIBOR is a benchmark rate that stands for:
London Internal Banking Official Rate
London Interbank Offered Rate
Local Interbank Overnight Rate
Listed International Banks Offered Rate
The London Interbank Offered Rate (LIBOR) was a benchmark interest rate at which major global banks lent to one another in the London market. It served as a reference for financial instruments worldwide, though it is now being phased out and replaced by alternative rates. LIBOR was administered by the ICE Benchmark Administration. Investopedia: LIBOR
Urban Co-operative Banks in India are primarily regulated by:
Ministry of Corporate Affairs
National Bank for Agriculture and Rural Development
Reserve Bank of India
State Governments
Urban Co-operative Banks (UCBs) are scheduled and non-scheduled co-operative banks that primarily operate in urban and semi-urban areas. They are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949, for banking aspects and by state co-operative departments for co-operative aspects. RBI issues norms on licensing, capital, and governance for UCBs. RBI: Co-operative Banks FAQs
Which statement best describes the difference between CRR and SLR?
CRR is a cash reserve with the RBI, while SLR is investment in government securities
CRR is held in securities, SLR in cash with the RBI
CRR affects capital adequacy, SLR affects liquidity
CRR is a tax on deposits, SLR is a tax on loans
CRR (Cash Reserve Ratio) requires banks to hold a certain percentage of deposits as cash with the RBI, earning no interest. SLR (Statutory Liquidity Ratio) mandates banks to maintain a portion of deposits in approved liquid assets like government securities. Both tools manage liquidity but differ in form and location of reserves. Investopedia: CRR & SLR
What is Capital Adequacy Ratio (CAR)?
Ratio of capital to risk-weighted assets
Ratio of net profit to total assets
Ratio of deposits to loans
Ratio of investments to liabilities
Capital Adequacy Ratio (CAR), also called Capital to Risk-weighted Assets Ratio (CRAR), measures a bank’s capital in relation to its risk-weighted assets. It ensures that banks have enough capital to absorb a reasonable level of losses. Regulators like the RBI set minimum CAR requirements under Basel norms. Investopedia: CAR
Which GST rate applies to most banking and financial services in India?
5%
12%
18%
28%
Banking and financial services in India are generally taxed at 18% under the Integrated Goods and Services Tax (IGST) or Central GST (CGST) plus State GST (SGST) framework. This rate was notified by the GST Council to harmonize indirect taxes across financial services. Certain exemptions and reverse charge mechanisms may apply in specific cases. GST India
SLBC is an important forum for banking operations. What does SLBC stand for?
State Level Bankers' Committee
State Loan and Banking Council
Special Liquidity Bank Committee
Scheduled Loans Banks’ Council
SLBC stands for State Level Bankers’ Committee, which is a platform for coordinating the implementation of banking policies at the state level. It includes representatives from the RBI, NABARD, government departments, and scheduled banks. SLBCs review priority sector lending targets and financial inclusion initiatives. RBI
In banking terms, what is an overdraft facility?
Loan taken against fixed deposits
Facility to withdraw beyond available balance
Short-term personal loan with collateral
Monthly installment loan product
An overdraft facility allows account holders to withdraw more money than their current balance up to a specified limit. It effectively provides a short-term borrowing option at an agreed interest rate. Banks charge interest only on the overdrawn amount and often levy additional fees. Investopedia: Overdraft
MCLR in lending rates stands for:
Marginal Cost of Liquidity Ratio
Marginal Cost of Lending Rate
Minimum Cost of Loan Rate
Maximum Cost of Lending Ratio
MCLR stands for Marginal Cost of Lending Rate, which is the minimum interest rate that a bank can charge on loans. Introduced by the RBI in 2016, it aims to link lending rates more closely to the bank’s actual funding costs. Banks reset their MCLR periodically based on underlying benchmarks. RBI MCLR Guidelines
The Liquidity Coverage Ratio (LCR) primarily measures a bank's ability to withstand:
Credit risk losses over a year
Market risk shocks over six months
Liquidity stress over 30 days
Operational risk events
The Liquidity Coverage Ratio (LCR) requires banks to hold a buffer of high-quality liquid assets sufficient to cover net cash outflows during a 30-day stress scenario. It ensures short-term resilience of a bank’s liquidity risk profile. LCR is a key component of Basel III global regulatory standards. BIS: LCR
Under Basel III guidelines, what is the minimum leverage ratio a bank must maintain?
2%
3%
5%
8%
The Basel III leverage ratio is a non-risk-based measure that requires banks to maintain a minimum Tier 1 capital relative to their total exposure of at least 3%. It serves as a backstop to the risk-weighted capital requirements, preventing excessive leverage. The standard was introduced to enhance bank stability post the 2008 financial crisis. BIS: Leverage Ratio
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Study Outcomes

  1. Understand Bank Exam Test Structure -

    Grasp the format and key sections of a bank exam test, including question types and scoring patterns to guide your preparation effectively.

  2. Analyze Numerical Ability Problems -

    Break down and solve a variety of numerical ability questions by applying proven mathematical strategies and shortcut techniques.

  3. Apply Logical Reasoning Techniques -

    Use structured reasoning methods to tackle puzzles, syllogisms, and data interpretation questions with clarity and precision.

  4. Recall Key General Awareness Facts -

    Strengthen your knowledge of current affairs, banking concepts, and financial terminology essential for general awareness sections.

  5. Assess Performance Through Mock Quiz -

    Evaluate your strengths and weaknesses by taking the bank exam mock test and reviewing detailed explanations for each question.

  6. Boost Confidence and Time Management -

    Enhance your exam-day readiness by practicing under timed conditions, improving both speed and accuracy.

Cheat Sheet

  1. Time Management Techniques -

    Practice full-length bank exam test quizzes under timed conditions to sharpen your pacing skills and reduce stress on exam day. Allocate specific time blocks per section - e.g., 20 minutes for reasoning and 25 minutes for numerical ability - and stick to them. A handy mnemonic is "PRIOR" (Plan, Review, Identify, Organize, Repeat) to structure your test-taking approach (Harvard Business Review, 2020).

  2. Core Arithmetic Formulas -

    Master key formulas like Profit & Loss, Simple & Compound Interest, and Ratio & Proportion, which appear frequently in bank exam practice tests. For example, CI = P(1 + r/100)^n - P, where P is principal, r is rate, and n is time in years (Reserve Bank of India syllabus). Use flashcards or spaced repetition apps to ingrain these equations in minutes (Cambridge University Study Tips, 2021).

  3. Data Interpretation Skills -

    Interpret bar graphs, pie charts, and tables by practicing with past bank exam mock test papers from official IBPS materials. Focus on speed-distance-time and work-time problems, beginning with simple conversions (Distance = Speed × Time). The "DCBA" method (Define, Compute, Break down, Answer) ensures a systematic approach under pressure (IBPS Official Guide).

  4. Logical Reasoning Strategies -

    Develop techniques for syllogisms, seating arrangements, and puzzles by categorizing each question type and applying elimination methods. For seating puzzles, draw quick diagrams numbering seats clockwise to avoid confusion, as recommended by the University of Delhi's reasoning workshops. Regularly time yourself on bank exam quizzes to track improvement in accuracy and speed.

  5. Banking Awareness Essentials -

    Stay current on RBI policies, budget highlights, and major financial events by reviewing the latest RBI Monthly Bulletins and Economic Survey summaries. Create a one-page "Mind Map" of key terms - like CRR, SLR, Repo Rate - with color coding to reinforce memory. Consult the official RBI website and financial newspaper archives for reliable banking exam questions.

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