IBPS PO Interview : What are you going to be asked?
Let is discuss a few probable questions and answers in this article so that you get an idea regarding what you are going to face in the interview.
- What are the pros and cons of a cashless economy?
Ans. Cashless economy simply refers to an economy where there will be very less transactions involving cash payment though the ultimate objective is to eliminate cash transactions in the economy. The pros of this are:
- The chances of generation of black money will decrease since all the transactions can be traced back easily through your account.
- There will be no need to carry cash around and the chances of stealing cash and security aspects do not need to be taken care of citizens.
- This is going to help financial inclusion since now everybody will have to open bank accounts and will transact through these accounts only.
- Financial literacy will increase especially among the rural areas of the country where there is still a lack of financial literacy.
Whereas there are also cons of this move as follows:
- The infrastructure to move towards a completely cashless economy is still not in place and there will be initial issues especially in the remote areas of the country.
- The incidences of online frauds and phishing attacks etc are slated to increase if citizens are not aware of the security issues to be taken care of while using online means of payment.
- Citizens especially in the rural areas need to be enlightened properly in order to make them enable to start transactions in the online mode.
- What do you think of demonetization and its effect on the economy of the country?
Ans. Demonetization has been announced by the government at the night of November 8, 2016implying that all the old Rs 500 and Rs 1000 notes would cease to be legal tenders from the midnight of that particular date. However, people were given time to deposit old currency notes in their bank accounts till December 30, 2016.
Regarding the effects of demonetization on the Indian economy, the whole picture is yet to emerge clearly but there are some objectives and possible effects on the economy:
- Cashless transactions will see a manifold rise and everybody will be moving towards online transactions in the days to come.
- The generation of black money from sectors such as real estate will decrease because generally black money hoarders hold currency in the higher denominations.
- The rural economy is going to take a hit in the initial days because of the infrastructural problem in the remote areas of the country for online payments.
- Financial inclusion is certainly going to rise at the backdrop of the decision since everybody is going to have bank accounts now.
- Financial literacy is also going to rise since everybody will now have to learn about bank accounts and the transactions you carry out in these accounts.
- What is the difference between Fiscal Policy and Monetary Policy of a country?
Ans. Fiscal policy of a country refers to the rules and regulations which are used by the government to influence the economy of a country by way of adjusting the revenue collection and the expenditure of the government in a financial year. It is generally controlled and monitored by the central government of a country.
On the other hand, monetary policy refers to the rules and regulations adopted by the central monetary authority of a country in order to control the monetary supply in the economy and often targets the inflation rate and interest rate prevailing rate in the economy. In India, the monetary policy is governed by the Reserve Bank of India.
- What do you understand by Corporate Social Responsibility?
Ans. Corporate Social Responsibility is a term generally used in order to define the business approach adopted by various companies to deliver economic, social and environmental wellbeing for all its stakeholders. It is basically a self-regulated mechanism in order to ensure that the companies give something back to the society from which they earn their profits. It has been made mandatory in the Companies Act 2013 to earmark 2% of the net profit of a company to deliver towards the social causes or CSR as it is commonly known.
- What do you know about the functions of the Central bank of India?
Ans. Reserve Bank of India is the central bank of our country and it is the central monetary authority in India. The various functions of RBI are as follows:
- It controls the monetary supply in the economy by announcing monetary policies from time to time by adopting various quantitative and qualitative methods.
- It has the mandate to issue currencies to be circulated after consulting with the central government.
- It maintains the foreign exchange reserve of the country.
- It regulates the banking system of the country and it is defined as the banker to the banks.
- The central bank manages the public debt of the country and acts as a banker to the central and state governments of India.
- The central bank also plays a developmental role for the economy by offering priority sector lending to MSME, Agriculture, education, housing loans to the needy sections of the society.
- The central bank acts as the regulator and supervisor to the payments and settlements systems of the country.