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MSC Bank Recruitment practice questions

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Question 1English Language

In a formal MSC Bank circular, choose the option that correctly completes the sentence: 'The revised KYC guidelines will come into force ____ 1 April.'

  1. at
  2. on Correct answer.
  3. in
  4. by

Explanation

With a precise calendar date, the preposition 'on' is standard: 'on 1 April'. 'In' is used with months, years and longer periods, 'at' with clock times, and 'by' would mean 'no later than', which changes the intended meaning.

Question 2English Language

Which word best fills the blank in this audit remark: 'The branch registers were maintained ____ and no discrepancy was traced.'

  1. meticulously Correct answer.
  2. reluctantly
  3. sporadically
  4. ambiguously

Explanation

The clause 'no discrepancy was traced' signals careful, thorough upkeep, so an adverb meaning 'with great care' is required. 'Meticulously' supplies that positive sense and fits the formal register of an audit note.

Question 3English Language

Identify the sentence in which the subject and verb agree correctly in a banking context.

  1. Neither the branch manager nor the cashiers is informed of the revised limit.
  2. Neither the branch manager nor the cashiers has been informed of the revised limit.
  3. Neither the branch manager nor the cashiers were informed of the revised limit. Correct answer.
  4. Neither the branch manager nor the cashiers was informed of the revised limit.

Explanation

With 'neither ... nor', the verb agrees with the nearer subject. 'Cashiers' is plural and nearest to the verb, so the plural form 'were' is correct.

Question 4English Language

Choose the correctly spelt word to complete the sentence: 'The borrower was asked to ____ the loan agreement before disbursement.'

  1. exicute
  2. execut
  3. execute Correct answer.
  4. excecute

Explanation

The standard spelling is 'execute', meaning to sign or carry out the terms of a legal document. The other forms are misspellings and would not appear in a formal banking instruction.

Question 5English Language

In the sentence 'The auditor, along with the branch officials, ____ scheduled to visit the vault tomorrow', which verb form is correct?

  1. have been
  2. are
  3. were
  4. is Correct answer.

Explanation

The phrase 'along with the branch officials' is parenthetical and does not change the number of the subject. The true subject is the singular 'auditor', so the singular verb 'is' is required.

Question 6English Language

Which option gives the correct passive transformation of 'The bank has sanctioned the loan'?

  1. The loan had sanctioned by the bank.
  2. The loan has been sanctioned by the bank. Correct answer.
  3. The loan is sanctioned by the bank.
  4. The loan was sanctioned by the bank.

Explanation

The present perfect active 'has sanctioned' becomes 'has been sanctioned' in the passive, preserving the same tense and aspect. The object 'the loan' moves to subject position.

Question 7English Language

Which sentence uses the article correctly in a banking notice?

  1. An RBI directive was issued to all scheduled commercial banks. Correct answer.
  2. An RBI directives were issued to all scheduled commercial banks.
  3. The RBI directive were issued to all scheduled commercial banks.
  4. A RBI directive was issued to all scheduled commercial banks.

Explanation

'RBI' begins with a vowel sound (/ɑːr/), so the indefinite article 'an' is used before the singular noun 'directive'. The resulting sentence is grammatically complete and consistent.

Question 8English Language

Choose the word closest in meaning to 'remit' as used in the sentence: 'Customers may remit funds through NEFT or RTGS.'

  1. withhold
  2. borrow
  3. audit
  4. send Correct answer.

Explanation

In banking usage, 'remit' means to send money, typically to another party or account. It is the standard verb used alongside payment systems such as NEFT and RTGS.

Question 9English Language

Complete the sentence with the correct conditional form: 'If the customer ____ the OTP, the transaction would have been declined.'

  1. has not entered
  2. had not entered Correct answer.
  3. did not enter
  4. would not enter

Explanation

This is a third conditional sentence describing an unreal past situation, so the if-clause takes the past perfect 'had not entered' and the main clause takes 'would have been declined'.

Question 10English Language

In the sentence 'Having verified the signatures, the officer forwarded the file', what does the participial phrase 'Having verified the signatures' modify?

  1. the forwarding
  2. the officer Correct answer.
  3. the signatures
  4. the file

Explanation

A participial phrase at the start of a sentence modifies the subject of the main clause. The subject here is 'the officer', who performed the verification before forwarding the file.

Question 11English Language

Which sentence correctly uses 'lie' and 'lay' in a banking record context?

  1. The documents laid on the manager's desk all morning.
  2. The documents have laid on the manager's desk all morning.
  3. The documents lay down on the manager's desk all morning.
  4. The documents lay on the manager's desk all morning. Correct answer.

Explanation

'Lie' is intransitive and its past tense is 'lay'. Since the documents are resting on the desk with no object, 'lay' is correct. 'Lay' as a verb requires a direct object meaning 'to place'.

Question 12English Language

Identify the clause type of the underlined portion: 'The branch that handles NRI deposits will remain open on Saturday.'

  1. noun clause
  2. restrictive relative clause Correct answer.
  3. non-restrictive relative clause
  4. adverb clause of condition

Explanation

The clause 'that handles NRI deposits' identifies which branch is meant and is essential to the meaning, so it is restrictive and takes no commas. Non-restrictive clauses merely add extra information and are set off by commas.

Question 13English Language

Choose the option that correctly completes the sentence: 'The manager insisted that every teller ____ the new cash-handling procedure.'

  1. will follow
  2. follow Correct answer.
  3. followed
  4. follows

Explanation

Verbs of insistence such as 'insist that' trigger the subjunctive mood, which uses the base form of the verb regardless of the subject. Hence 'follow' is correct after 'every teller'.

Question 14English Language

Which sentence places the adverb correctly for formal written English?

  1. The bank consistently has met its priority-sector lending targets.
  2. The bank has met consistently its priority-sector lending targets.
  3. The bank has consistently met its priority-sector lending targets. Correct answer.
  4. Consistently the bank has met its priority-sector lending targets.

Explanation

Adverbs of frequency normally sit between the auxiliary and the main verb, giving 'has consistently met'. This placement is the most natural in formal prose.

Question 15English Language

What is the meaning of the idiom 'to cook the books' in an audit context?

  1. to publish audited statements
  2. to falsify financial records Correct answer.
  3. to prepare annual accounts
  4. to reconcile ledgers carefully

Explanation

The idiom 'cook the books' means to manipulate or falsify accounting records to deceive readers. It carries a clearly negative connotation and is used in fraud discussions.

Question 16English Language

Choose the correct option to complete the sentence: 'The committee ____ divided in its opinion on the merger proposal.'

  1. were
  2. are
  3. is Correct answer.
  4. have

Explanation

Collective nouns such as 'committee' take a singular verb when the group acts as a single unit, as with a single opinion. 'Is' therefore agrees with the subject in this context.

Question 17English Language

Which option correctly rewrites the sentence in reported speech? Direct: The officer said, 'I will verify the documents tomorrow.'

  1. The officer said that he would verify the documents the next day. Correct answer.
  2. The officer said that he will verify the documents tomorrow.
  3. The officer says that he would verify the documents the next day.
  4. The officer said that he would verify the documents tomorrow.

Explanation

In reported speech after a past reporting verb, 'will' shifts to 'would' and 'tomorrow' shifts to 'the next day'. Both shifts are needed for a fully correct transformation.

Question 18English Language

Select the sentence that uses a phrasal verb correctly in a banking context.

  1. The bank decided to write down the unrecoverable loan completely.
  2. The bank decided to write in the unrecoverable loan.
  3. The bank decided to write out the unrecoverable loan.
  4. The bank decided to write off the unrecoverable loan. Correct answer.

Explanation

'Write off' is the standard phrasal verb meaning to remove a debt from the books as irrecoverable. The other combinations either have different meanings or are not idiomatic in this context.

Question 19English Language

Which sentence is free of redundancy while retaining its meaning in a formal report?

  1. The branch returned back the documents to the customer.
  2. The branch returned the documents back to the customer.
  3. The branch returned the documents to the customer. Correct answer.
  4. The branch returned the documents again back to the customer.

Explanation

The verb 'return' already contains the idea of 'back', so adding 'back' creates redundancy. The first option states the action clearly without unnecessary repetition.

Question 20English Language

Choose the option that correctly completes the sentence: 'No sooner ____ the notice than the customers queued outside the branch.'

  1. did the bank published
  2. the bank had published
  3. had the bank published Correct answer.
  4. the bank published

Explanation

'No sooner' at the start of a sentence triggers inversion, so the auxiliary 'had' comes before the subject. The past perfect 'had published' also correctly pairs with 'than'.

Question 21English Language

In the sentence 'The loan officer, whom the auditors questioned at length, resigned last week', what is the function of 'whom'?

  1. object of the preposition 'at'
  2. subject of the verb 'questioned'
  3. object of the verb 'questioned' Correct answer.
  4. possessive determiner

Explanation

'Whom' is the object of the verb 'questioned': the auditors questioned the loan officer. The object case 'whom' is therefore correct, unlike the subject form 'who'.

Question 22English Language

Which sentence uses the semicolon correctly in a formal banking memo?

  1. The audit is complete; however, two observations remain open. Correct answer.
  2. The audit is complete; however two observations remain open.
  3. The audit is complete; two observations, however, remain open.
  4. The audit is complete; and two observations remain open.

Explanation

A semicolon can join two independent clauses, and a conjunctive adverb such as 'however' is followed by a comma. The first option satisfies both rules.

Question 23English Language

Which option best expresses the sentence in the most formal register suitable for an RBI compliance report?

  1. The bank must hand over the returns in the set time.
  2. The bank needs to send in the returns by the deadline.
  3. The bank has got to give the returns in the time fixed.
  4. The bank is required to furnish the prescribed returns within the stipulated period. Correct answer.

Explanation

Formal regulatory writing favours verbs such as 'furnish' and phrases such as 'within the stipulated period'. This option preserves precision and the impersonal tone expected in compliance documents.

Question 24English Language

Identify the error in the sentence: 'Scarcely had the branch opened when the customers started to arrive, and hardly had they entered than the system failed.'

  1. 'had opened' should be 'has opened'
  2. 'than' should be 'when' after 'hardly had' Correct answer.
  3. 'scarcely' should be 'scarce'
  4. 'started to arrive' should be 'started arrive'

Explanation

The correlative pattern is 'hardly ... when' and 'scarcely ... when', not 'hardly ... than'. 'Than' pairs with 'no sooner'. The sentence therefore needs 'when' after 'hardly had they entered'.

Question 25English Language

Which sentence demonstrates correct use of the past perfect to show the earlier of two past actions in a fraud investigation?

  1. The investigators found that the clerk has altered the entries before the audit began.
  2. The investigators found that the clerk had altered the entries before the audit began. Correct answer.
  3. The investigators found that the clerk alters the entries before the audit began.
  4. The investigators found that the clerk altered the entries before the audit began.

Explanation

The past perfect 'had altered' marks the action completed before another past event, the audit. This ordering is essential when sequencing events in an investigation narrative.

Question 26English Language

In the sentence 'The auditor’s report, which was submitted yesterday, highlights several irregularities in the loan sanction process,' what is the grammatical function of the clause 'which was submitted yesterday'?

  1. Noun clause functioning as the object of 'highlights'
  2. Restrictive relative clause modifying 'auditor'
  3. Non-restrictive relative clause modifying 'report' Correct answer.
  4. Adverbial clause of time modifying 'highlights'

Explanation

The clause is set off by commas and provides additional, non-essential information about 'report', so it is a non-restrictive relative clause. Restrictive clauses are not comma-separated and would be essential to identify the noun.

Question 27English Language

Choose the option that correctly completes the sentence in a formal banking context: 'The branch manager, along with the cashiers, ____ responsible for verifying the daily ledger.'

  1. were
  2. are
  3. have been
  4. is Correct answer.

Explanation

When a singular subject is followed by 'along with', the verb agrees with the singular subject 'manager', not with the noun in the intervening phrase. Thus the singular 'is' is correct.

Question 28English Language

Which word is closest in meaning to 'collateral' as used in the sentence: 'The bank required collateral before approving the business loan'?

  1. Security Correct answer.
  2. Guarantee
  3. Insurance
  4. Subsidy

Explanation

In lending, 'collateral' refers to an asset pledged as security for repayment of a loan. 'Security' is the closest synonym in this financial context, whereas the other terms refer to different financial arrangements.

Question 29English Language

Identify the error in the sentence: 'The bank have decided to revise its interest rates effective from next Monday.'

  1. The sentence is correct as written.
  2. The pronoun 'its' should be 'their' to match 'bank'.
  3. The phrase 'effective from' should be 'effective on'.
  4. The verb 'have' should be 'has' to agree with the singular collective noun 'bank'. Correct answer.

Explanation

In formal English, a collective noun such as 'bank' is treated as singular when it acts as a single entity, so it takes the singular verb 'has'. The other elements are grammatically acceptable.

Question 30English Language

Which option correctly completes the sentence using the appropriate modal verb? 'According to RBI guidelines, all banks ____ maintain a minimum capital adequacy ratio.'

  1. must Correct answer.
  2. might
  3. could
  4. would

Explanation

The sentence expresses a regulatory obligation, so 'must' is the correct modal. 'Might' and 'could' indicate possibility, and 'would' indicates conditionality, none of which convey mandatory requirement.

Question 31English Language

Choose the option that best combines the two sentences into one formal sentence: 'The customer submitted the form. The form was incomplete.'

  1. The customer submitted the form; however, it was incomplete.
  2. The customer submitted the form, which was incomplete. Correct answer.
  3. The customer submitted the form, and it was incomplete.
  4. The customer submitted the form because it was incomplete.

Explanation

A non-restrictive relative clause beginning with 'which' efficiently combines the information and clearly indicates that the form was incomplete. It is concise and appropriate for formal writing.

Question 32English Language

In the sentence 'The committee, after reviewing the audit report, recommended stricter internal controls,' what is the grammatical function of 'after reviewing the audit report'?

  1. Gerund phrase functioning as the object of 'recommended'
  2. Participial phrase modifying 'committee'
  3. Infinitive phrase expressing purpose
  4. Prepositional phrase functioning as an adverbial of time Correct answer.

Explanation

The phrase begins with the preposition 'after' and is followed by a gerund, forming a prepositional phrase that tells when the recommendation was made. It modifies the verb 'recommended' as an adverbial.

Question 33English Language

Which sentence uses the apostrophe correctly in a banking context?

  1. The customers accounts' were credited with the interest amount.
  2. The customers' accounts were credited with the interest amount. Correct answer.
  3. The customers accounts were credited with the interest amount.
  4. The customer's accounts were credited with the interest amount.

Explanation

The plural possessive 'customers' requires the apostrophe after the final 's'. Option 1 correctly places the apostrophe to indicate that the accounts belong to multiple customers.

Question 34English Language

Choose the option that correctly completes the sentence: 'If the bank ____ the new software earlier, the processing delay would not have occurred.'

  1. would install
  2. has installed
  3. installed
  4. had installed Correct answer.

Explanation

This is a third conditional sentence describing an unreal past situation. The if-clause requires the past perfect 'had installed' to match the main clause 'would not have occurred'.

Question 35English Language

Which sentence correctly uses the verb 'comprise' in a formal report?

  1. The audit team comprises of five senior officers and two juniors.
  2. The audit team comprises five senior officers and two juniors. Correct answer.
  3. The audit team is comprising five senior officers and two juniors.
  4. The audit team is comprised of five senior officers and two juniors.

Explanation

'Comprise' means 'to consist of' and is used correctly without 'of'. The other options incorrectly add 'of' or use a progressive form that is not standard.

Question 36English Language

What is the meaning of the idiom 'to be in the red' in a financial context?

  1. To have a large cash reserve
  2. To be operating at a loss or overdrawn Correct answer.
  3. To be making a profit
  4. To be under audit investigation

Explanation

'In the red' means a business or account has a negative balance or is losing money. It contrasts with 'in the black', which indicates profitability.

Question 37English Language

Which option correctly transforms the sentence into the passive voice? Active: 'The bank has sanctioned the loan.'

  1. The loan has been sanctioned by the bank. Correct answer.
  2. The loan is sanctioned by the bank.
  3. The loan had been sanctioned by the bank.
  4. The loan was sanctioned by the bank.

Explanation

The present perfect active 'has sanctioned' becomes the present perfect passive 'has been sanctioned'. The other options change the tense.

Question 38English Language

In the sentence 'The manager insisted that the report be submitted by Friday,' what is the grammatical mood of 'be submitted'?

  1. Imperative
  2. Conditional
  3. Subjunctive Correct answer.
  4. Indicative

Explanation

The base form 'be' after verbs like 'insist' that express a demand or suggestion is the present subjunctive. It is used in formal English to indicate a required action.

Question 39English Language

Which sentence correctly uses the past perfect tense to show the earlier of two past actions in a fraud investigation?

  1. The auditors had discovered that the clerk altered the records before the inspection.
  2. The auditors discovered that the clerk has altered the records before the inspection.
  3. The auditors discovered that the clerk had altered the records before the inspection. Correct answer.
  4. The auditors discovered that the clerk altered the records before the inspection.

Explanation

The past perfect 'had altered' clearly indicates that the alteration occurred before the discovery, which is in the simple past. This correctly orders the two past events.

Question 40English Language

Which sentence is free of redundancy while retaining its meaning in a formal banking report?

  1. The bank will conduct a review of the loan approval process.
  2. The bank will review the loan approval process. Correct answer.
  3. The bank will perform a review of the loan approval process.
  4. The bank will undertake a review of the loan approval process.

Explanation

The verb 'review' alone conveys the action concisely, avoiding the wordy 'conduct a review of'. The other options add unnecessary nominalizations.

Question 41Quantitative Aptitude / Numerical Ability

A clerk earns a basic pay of ₹24,000 per month. The bank adds dearness allowance at 12% of basic pay and special allowance at 8% of basic pay. What is the clerk's gross monthly pay?

  1. ₹29,760
  2. ₹30,240
  3. ₹26,880
  4. ₹28,800 Correct answer.

Explanation

Both allowances are percentages of the same basic pay, so they can be combined: 12% + 8% = 20% of ₹24,000 = ₹4,800. Adding this to basic pay gives ₹24,000 + ₹4,800 = ₹28,800. Computing each allowance separately and adding gives the same result.

Question 42Quantitative Aptitude / Numerical Ability

In a bank, the ratio of officers to clerks is 3 : 7. If there are 84 clerks, how many officers are there?

  1. 28
  2. 24
  3. 42
  4. 36 Correct answer.

Explanation

Each ratio part equals 84 ÷ 7 = 12 employees. Officers correspond to 3 parts, so the number of officers is 3 × 12 = 36. The ratio must be scaled by the same factor for both quantities.

Question 43Quantitative Aptitude / Numerical Ability

A sum of ₹15,000 is invested at 8% per annum simple interest. What is the total amount after 3 years?

  1. ₹18,600 Correct answer.
  2. ₹19,800
  3. ₹3,600
  4. ₹18,000

Explanation

Simple interest is P × R × T ÷ 100 = 15,000 × 8 × 3 ÷ 100 = ₹3,600. The amount is principal plus interest, that is ₹15,000 + ₹3,600 = ₹18,600. Reporting only the interest is a common slip.

Question 44Quantitative Aptitude / Numerical Ability

A train covers 360 km in 4 hours. What is its average speed in metres per second?

  1. 30 m/s
  2. 90 m/s
  3. 25 m/s Correct answer.
  4. 20 m/s

Explanation

Average speed is 360 ÷ 4 = 90 km/h. To convert km/h to m/s, multiply by 5/18, giving 90 × 5/18 = 25 m/s. The conversion factor is essential because the answer must be in metres per second.

Question 45Quantitative Aptitude / Numerical Ability

What is the average of the first 20 natural numbers?

  1. 10.5 Correct answer.
  2. 10
  3. 11
  4. 20

Explanation

The sum of the first n natural numbers is n(n+1)/2 = 20 × 21 ÷ 2 = 210. Dividing by 20 gives an average of 10.5. Equivalently, the average of 1 to 20 is the mean of the extremes, (1+20)/2 = 10.5.

Question 46Quantitative Aptitude / Numerical Ability

A customer deposits ₹8,000 in a recurring scheme. If the amount grows to ₹9,200 in one year, what is the percentage gain?

  1. 15% Correct answer.
  2. 12%
  3. 20%
  4. 13%

Explanation

Gain = 9,200 − 8,000 = ₹1,200. Percentage gain = (1,200 ÷ 8,000) × 100 = 15%. The gain must be divided by the original deposit, not by the final amount.

Question 47Quantitative Aptitude / Numerical Ability

A bank's branch has 5 officers and 3 clerks. In how many ways can a committee of 2 officers and 1 clerk be formed?

  1. 15
  2. 30 Correct answer.
  3. 40
  4. 10

Explanation

Choose 2 officers from 5 in C(5,2) = 10 ways and 1 clerk from 3 in C(3,1) = 3 ways. Multiplying independent choices gives 10 × 3 = 30 committees. The selections are combined, not added.

Question 48Quantitative Aptitude / Numerical Ability

A sum becomes ₹12,100 in 2 years at 10% per annum compound interest. What was the principal?

  1. ₹11,000
  2. ₹10,000 Correct answer.
  3. ₹9,900
  4. ₹10,500

Explanation

For compound interest, amount = P(1 + r/100)^t = P(1.1)^2 = 1.21P. Setting 1.21P = 12,100 gives P = ₹10,000. Checking: 10,000 grows to 11,000 then to 12,100.

Question 49Quantitative Aptitude / Numerical Ability

The average age of 6 officers is 32 years. When a new officer joins, the average becomes 33 years. What is the age of the new officer?

  1. 39 years Correct answer.
  2. 33 years
  3. 40 years
  4. 36 years

Explanation

Total age of 6 officers = 6 × 32 = 192 years. After the new officer joins, total age of 7 = 7 × 33 = 231 years. The new officer's age is 231 − 192 = 39 years.

Question 50Quantitative Aptitude / Numerical Ability

A shopkeeper marks an article at ₹2,500 and allows a discount of 20%. He still makes a profit of 25% on cost. What is the cost price?

  1. ₹2,000
  2. ₹1,500
  3. ₹1,600 Correct answer.
  4. ₹1,750

Explanation

Selling price after 20% discount = 0.8 × 2,500 = ₹2,000. Since this is 25% above cost, cost = 2,000 ÷ 1.25 = ₹1,600. The discount applies to the marked price, while profit applies to cost.