Sunday, 13 September 2026

MOCK TEST BANKING AND OTHER COMPETITIVE EXAMINATIONS QUESTIONS WITH EXAMPLES AND EXPLANATIONS


                               



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1. 

In the question below a sentence is given with four words highlighted ABCD. These four words may not be in their correct position. The sentence is then followed by options with the correct combination of words that should replace each other inorder to make the sentence grammatically and contextually correct. Find the correct combination of the words that replace each other.

i) 

Although the officer was aware  of the serious consequences of his  
 proposal (A) he  approved (B)  to reconsider  the  decision (C)  that had already been  refused (D)  by the committee.           
1. AC
2. BD
3. AC & BD
4. AD & BC
5. No interchange required.


ii)

The candidate was confident (A)  that his consistent efforts would enable him to succeeding (B) the difficulties that had prevented (C) him from overcome (D)  earlier.

1. AC
2. CD
3. BD
4. AB & CD

iii)

The revised model gives greater weight to recent observations because older data may amplify (A) current conditions and obscure (B) structural breaks thereby reducing (C) rather than increasing (D) forecast error.

1.AB 
2.CD  
3.AC & BD
4. AB  &  CD 
5.No interchange required.

iv) 

By publishing granular data, the regulator hoped to conceal (A) market discipline and expose (B)
practices that weak institutions might otherwise  encourage  (C)
through opaque disclosures (D).

1. AB
2. AD
3. AC
4. ADBC
5. No interchange required

v)

Despite the bond's high rating, investors should not assume that its  liquidity (A) is negligible (B) while its default risk (C) is ample (D). 

1. AC
2. BD
3. AB & CD
4. AD
5. No interchange required


vi)

To reduce procyclical lending, the framework seeks to reward (A) capital buffers during expansions and build (B)  banks that release (C) them when conditions deteriorate (D)

1. AB
2. BC 
3. AD & BC
4. CD
5. No interchange required.

2.

Change the Narration.

1.
The villager informed the money-lender that he had paid off  all his dues when he visited him last.

i)
The villager said to the money-lender," I have paid off all my dues when I visited you last."

ii)
The villager said to the money-lender," I paid off  all my dues when I visited you last."

iii)
The villager said to the money-lender," I had paid off  all my dues when I visit you last."

iv)
The villager said to the money-lender," I  paid off  all my dues when I visit you last."

2.
" Well played! my friends," shouted the captain .

i) The captain called them friends and said that it was well played.
ii) The captain told his friends that it was well played.
iii) The captain enquired his  friends  if it was well played.
iv) The captain called them friends and said that they had played well.


3.
Deposit insurance is an important mechanism for maintaining stability and confidence in the banking system. It protects depositors by providing insurance on eligible bank deposits if a bank fails. In India, this responsibility is mainly performed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India.

At present, the insurance cover provided by DICGC is up to ₹5 lakh per depositor per bank, including both principal and interest. 
Deposit insurance plays a crucial role in preventing panic among depositors. By assuring depositors that their eligible deposits are protected up to the prescribed limit, deposit insurance strengthens public confidence in banks.
The system also contributes to financial stability. It protects ordinary depositors who may not have the knowledge or resources to assess the financial condition of a bank. 

Thus the Deposit Insurance and Credit Guarantee Corporation is an important pillar of India's financial system. By protecting depositors and strengthening confidence in banks, it contributes significantly to financial stability. Effective deposit insurance, combined with sound banking regulation and responsible management, is essential for maintaining a safe and trustworthy banking system.

1. What is the primary purpose of deposit insurance?
A. To increase bank profits
B. To protect depositors if a bank fails
C. To provide loans to banks
D. To regulate interest rates


2. DICGC is a wholly owned subsidiary of:
A. Ministry of Finance
B. Reserve Bank of India
C. State Bank of India
D. Government of India


3. How does deposit insurance help prevent panic among depositors?
A. By increasing bank interest rates
B. By assuring depositors that eligible deposits are protected
C. By providing unlimited insurance
D. By preventing banks from giving loans

4. Deposit insurance particularly protects ordinary depositors because they may:
A. Have excessive knowledge of banking
B. Have unlimited financial resources
C. Lack the knowledge or resources to assess a bank's financial condition
D. Own several banks


5. Which of the following is NOT mentioned as a benefit of deposit insurance?
A. Strengthening public confidence
B. Contributing to financial stability
C. Preventing panic among depositors
D. Increasing bank profitability


6. According to the passage, effective deposit insurance should be combined with:
A. Higher taxation and strict currency controls
B. Sound banking regulation and responsible management
C. More bank branches and higher interest rates
D. Increased government borrowing


7. Which of the following best expresses the central idea of the passage?
A. Banks should provide unlimited insurance to depositors.
B. DICGC is responsible for regulating all banks in India.
C. Deposit insurance protects depositors and promotes confidence and financial stability.
D. Ordinary depositors are responsible for assessing the financial condition of banks.

4.

Four options are given for the voice of the following sentence. Out of which one is correct,choose the correct one.

1.
It took them five hours to resolve the issue.

i) They were taken five hours to resolve the issue.
ii) It was taken five hours for them to resolve the issue.
iii) It took five hours for them to resolve the issue.
iv) Five hours were taken by them to resolve the issue.

2.
A stitch in time saves nine.

i) Nine is saved by a stitch in time.
ii) Nine can be saved by a stitch in time.
iii) Nine are saved by a stitch in time.
iv) Nine may be saved by a stitch in time.

3.
Everyone present on the stage desired that he should be honoured.

i) He should be honoured was desired by everyone present on the stage.
ii) It was desired by everyone present on the stage that they should  honour him.
iii) It was desired by everyone present on the stage that he should be honoured.
iv) It was desired that everyone present on the stage should be honoured.

4.
He wants me to address him as "Sir".

i) I want him to be addressed as "Sir".
ii)  I am  wanted by him to be addressed as "Sir".
iii) He wants to be addressed as "Sir" by me.
iv) He wanted that I should address him as "Sir".

5.

A part of following sentences contains an error. Identify the part which contains an error.

1.
Before modern automation factory workers used often to work for over twelve hours without a break.


i) Before modern automation,
 ii)factory workers used often iii)  to work for over iv)twelve hours without a break.

2. 
In no case any payment should be made to the supplier before he supplies  goods to us.

i) In no case 
ii) any payment should
iii) be made to the supplier 
iv) before he supplies  goods to us.

3.

Having travelled millions of kilometers through space, the orbit of the spacecraft was changed and it started transmitting valuable scientific data to the centre on Earth.

i) Having travelled millions of kilometers through space,

ii)  the orbit of the spacecraft was changed

iii)  and it started transmitting valuable

 iv) scientific data to the centre on Earth.


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