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IBPS PO 2023 Question Paper & Answers

The official IBPS PO 2023 question paper, with the official answer key. Attempt as a real timed exam (with negative marking) or switch to practice mode for instant per-question answers and explanations.

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Memory-based

IBPS PO Prelims 2023 (23 September 2023)

60 Mins 100 Marks
100Questions
100Max Marks

Sample questions from IBPS PO Prelims 2023 (23 September 2023)

1Read the passage to answer the given questions.
Over the past two decades, microfinance institutions (MFIs) have positioned themselves as a vital instrument for extending small, collateral-free loans to rural women who remain excluded from formal banking channels. Proponents argue that these institutions have enabled thousands of women to launch modest enterprises, such as poultry farms, tailoring units, and dairy cooperatives, thereby generating independent income streams and strengthening their bargaining power within the household. The self-help group (SHG) model, in particular, has proven especially resilient; by pooling savings and extending credit through peer accountability rather than physical collateral, SHGs have achieved repayment rates that rival, and often exceed, those of conventional commercial banks. This success stems largely from the social pressure embedded within tightly knit village communities, where a woman's reputation and standing are closely tied to her financial conduct.
Yet the microfinance sector is not without its detractors. Critics contend that some MFIs, driven by the pressure to remain profitable, have imposed interest rates that, while lower than those charged by informal moneylenders, still remain onerous for borrowers operating on thin margins. There have also been troubling instances of multiple lending, where a single borrower accumulates loans from several institutions simultaneously, leading to a spiral of indebtedness rather than emancipation. Regulatory bodies have since intervened, capping interest rates and mandating stricter disclosure norms to curb such excesses. Despite these persistent challenges, empirical studies continue to demonstrate that access to microcredit, when responsibly administered, correlates with measurable improvements in women's decision-making authority, children's school enrolment, and household nutrition. What is the central theme of the passage?
  • A) The failure of rural banking systems in developing economies
  • B) The role of microfinance in empowering rural women, along with the challenges that accompany it
  • C) The history of self-help groups in Indian villages
  • D) The comparison between commercial banks and moneylenders
  • E) The impact of government subsidies on rural employment
Answer: B
2Read the passage to answer the given questions.
Over the past two decades, microfinance institutions (MFIs) have positioned themselves as a vital instrument for extending small, collateral-free loans to rural women who remain excluded from formal banking channels. Proponents argue that these institutions have enabled thousands of women to launch modest enterprises, such as poultry farms, tailoring units, and dairy cooperatives, thereby generating independent income streams and strengthening their bargaining power within the household. The self-help group (SHG) model, in particular, has proven especially resilient; by pooling savings and extending credit through peer accountability rather than physical collateral, SHGs have achieved repayment rates that rival, and often exceed, those of conventional commercial banks. This success stems largely from the social pressure embedded within tightly knit village communities, where a woman's reputation and standing are closely tied to her financial conduct.
Yet the microfinance sector is not without its detractors. Critics contend that some MFIs, driven by the pressure to remain profitable, have imposed interest rates that, while lower than those charged by informal moneylenders, still remain onerous for borrowers operating on thin margins. There have also been troubling instances of multiple lending, where a single borrower accumulates loans from several institutions simultaneously, leading to a spiral of indebtedness rather than emancipation. Regulatory bodies have since intervened, capping interest rates and mandating stricter disclosure norms to curb such excesses. Despite these persistent challenges, empirical studies continue to demonstrate that access to microcredit, when responsibly administered, correlates with measurable improvements in women's decision-making authority, children's school enrolment, and household nutrition. According to the passage, why do self-help groups (SHGs) achieve repayment rates that rival or exceed those of commercial banks?
  • A) Because SHGs charge no interest at all
  • B) Because government agencies guarantee every loan issued by SHGs
  • C) Because social pressure within close-knit communities ties a woman's reputation to her financial conduct
  • D) Because SHG members are legally required to repay within a week
  • E) Because SHGs only lend to women who already own property
Answer: C
3Read the passage to answer the given questions.
Over the past two decades, microfinance institutions (MFIs) have positioned themselves as a vital instrument for extending small, collateral-free loans to rural women who remain excluded from formal banking channels. Proponents argue that these institutions have enabled thousands of women to launch modest enterprises, such as poultry farms, tailoring units, and dairy cooperatives, thereby generating independent income streams and strengthening their bargaining power within the household. The self-help group (SHG) model, in particular, has proven especially resilient; by pooling savings and extending credit through peer accountability rather than physical collateral, SHGs have achieved repayment rates that rival, and often exceed, those of conventional commercial banks. This success stems largely from the social pressure embedded within tightly knit village communities, where a woman's reputation and standing are closely tied to her financial conduct.
Yet the microfinance sector is not without its detractors. Critics contend that some MFIs, driven by the pressure to remain profitable, have imposed interest rates that, while lower than those charged by informal moneylenders, still remain onerous for borrowers operating on thin margins. There have also been troubling instances of multiple lending, where a single borrower accumulates loans from several institutions simultaneously, leading to a spiral of indebtedness rather than emancipation. Regulatory bodies have since intervened, capping interest rates and mandating stricter disclosure norms to curb such excesses. Despite these persistent challenges, empirical studies continue to demonstrate that access to microcredit, when responsibly administered, correlates with measurable improvements in women's decision-making authority, children's school enrolment, and household nutrition. Which of the following enterprises are mentioned in the passage as examples of businesses launched by women using microfinance?
  • A) Software startups and export trading firms
  • B) Poultry farms, tailoring units, and dairy cooperatives
  • C) Real estate agencies and construction firms
  • D) Automobile repair shops and transport companies
  • E) Retail supermarkets and hotel chains
Answer: B
4Read the passage to answer the given questions.
Over the past two decades, microfinance institutions (MFIs) have positioned themselves as a vital instrument for extending small, collateral-free loans to rural women who remain excluded from formal banking channels. Proponents argue that these institutions have enabled thousands of women to launch modest enterprises, such as poultry farms, tailoring units, and dairy cooperatives, thereby generating independent income streams and strengthening their bargaining power within the household. The self-help group (SHG) model, in particular, has proven especially resilient; by pooling savings and extending credit through peer accountability rather than physical collateral, SHGs have achieved repayment rates that rival, and often exceed, those of conventional commercial banks. This success stems largely from the social pressure embedded within tightly knit village communities, where a woman's reputation and standing are closely tied to her financial conduct.
Yet the microfinance sector is not without its detractors. Critics contend that some MFIs, driven by the pressure to remain profitable, have imposed interest rates that, while lower than those charged by informal moneylenders, still remain onerous for borrowers operating on thin margins. There have also been troubling instances of multiple lending, where a single borrower accumulates loans from several institutions simultaneously, leading to a spiral of indebtedness rather than emancipation. Regulatory bodies have since intervened, capping interest rates and mandating stricter disclosure norms to curb such excesses. Despite these persistent challenges, empirical studies continue to demonstrate that access to microcredit, when responsibly administered, correlates with measurable improvements in women's decision-making authority, children's school enrolment, and household nutrition. What does the author imply about the future course of action for the microfinance sector?
  • A) The model should be discarded entirely due to its flaws
  • B) Interest rates should be eliminated completely
  • C) The governance of the sector should be refined rather than the model being abandoned
  • D) Rural women should be discouraged from taking loans
  • E) Commercial banks should take over all microfinance operations
Answer: C
5Read the passage to answer the given questions.
Over the past two decades, microfinance institutions (MFIs) have positioned themselves as a vital instrument for extending small, collateral-free loans to rural women who remain excluded from formal banking channels. Proponents argue that these institutions have enabled thousands of women to launch modest enterprises, such as poultry farms, tailoring units, and dairy cooperatives, thereby generating independent income streams and strengthening their bargaining power within the household. The self-help group (SHG) model, in particular, has proven especially resilient; by pooling savings and extending credit through peer accountability rather than physical collateral, SHGs have achieved repayment rates that rival, and often exceed, those of conventional commercial banks. This success stems largely from the social pressure embedded within tightly knit village communities, where a woman's reputation and standing are closely tied to her financial conduct.
Yet the microfinance sector is not without its detractors. Critics contend that some MFIs, driven by the pressure to remain profitable, have imposed interest rates that, while lower than those charged by informal moneylenders, still remain onerous for borrowers operating on thin margins. There have also been troubling instances of multiple lending, where a single borrower accumulates loans from several institutions simultaneously, leading to a spiral of indebtedness rather than emancipation. Regulatory bodies have since intervened, capping interest rates and mandating stricter disclosure norms to curb such excesses. Despite these persistent challenges, empirical studies continue to demonstrate that access to microcredit, when responsibly administered, correlates with measurable improvements in women's decision-making authority, children's school enrolment, and household nutrition. Why did regulatory bodies intervene in the microfinance sector, as stated in the passage?
  • A) To promote competition among moneylenders
  • B) To curb excesses such as high interest rates and the debt spiral caused by multiple lending
  • C) To shut down all self-help groups
  • D) To increase the number of MFIs operating in rural areas
  • E) To transfer microfinance operations to the government
Answer: B

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