Cloze Test Questions for IBPS PO Mains, Live PDF & Quiz

1. Quantitative easing (QE) is an unconventional monetary policy tool whereby a central bank ________ large quantities of government bonds or other financial assets to inject money directly into the economy.

2. Direct Benefit Transfers (DBTs) have further ________ leakages in government subsidy, ensuring money reaches the intended beneficiaries.

3. The primary market is where new securities are ________ to the public for the first time through an Initial Public Offering (IPO).

4. Over-indebtedness, however, remains a serious ________, particularly when multiple lenders extend credit to the same borrower without credit history.

5. Poor governance, on the other hand, can lead to financial ________ and erode investor confidence.

6. India’s Jan Dhan Yojana has been a ________ step in this direction.

7. Retail investors are encouraged to ________ in capital markets as part of a diversified investment strategy.

8. Market ________ can be caused by a range of factors, including geopolitical events, earnings announcements, and changes in monetary policy.

9. The current account deficit (CAD) arises when a country ________ more goods, services, and capital than it exports.

10. When inflation ________ beyond acceptable levels, the central bank may raise interest rates.

11. The primary ________ of QE is to lower long-term interest rates and encourage lending.

12. Policyholders pay regular ________ to an insurer.

13. Regulators worldwide are working to ________ guidelines that ensure data privacy while fostering fintech innovation.

14. The ________ of risk among a large number of policyholders ensures that no single entity bears a disproportionately large financial burden.

15. The concept of ‘too big to fail’ (TBTF) describes banks or financial institutions whose failure would be so ________ to the broader economy.

16. Central banks typically ________ inflation within a target band using tools such as adjusting the repo rate.

17. Good governance ensures that companies ________ in the best interests of shareholders and other stakeholders.

18. Non-performing assets (NPAs) have long been a ________ concern for India’s banking sector.

19. India’s CAD is often ________ by high crude oil imports and gold consumption.

20. The government’s ________ deficit occurs when expenditure exceeds revenue in a given fiscal year.

21. Regulators have since ________ stricter capital requirements under Basel III norms.

22. Corporate governance refers to the system by which companies are ________ and controlled.

23. Effective regulation and robust credit bureaus are ________ to prevent such systemic risks in the microfinance sector.

24. The Union Budget is the annual financial ________ of the Indian government.

25. A budget that allocates more than it ________ is called a deficit budget.

26. Policymakers attempt to ________ the deficit by promoting export-oriented industries.

27. The Securities and Exchange Board of India (SEBI) ________ capital markets to protect investor interests.

28. Central banks may raise interest rates, which ________ consumer spending and business investment.

29. The Reserve Bank of India recently ________ its monetary policy stance from ‘accommodative’ to ‘neutral’.

30. When borrowers ________ to repay loans for more than 90 days, the loan is classified as an NPA.