GTI Microfinance Bank Aptitude Test Questions and Answers

GTI Microfinance Bank Aptitude Test Questions and Answers

Here are 20 GTI Microfinance Bank aptitude questions along with options and the correct answers:

What does the acronym "GTI" stand for?

a) Global Trade Initiative

b) Grand Trust Incorporated

c) Group Technology Integration

d) General Telecommunications Institute

Correct answer: b) Grand Trust Incorporated

What is the primary function of a microfinance bank?

a) Granting large loans to corporate clients

b) Providing financial services to low-income individuals

c) Investing in high-risk ventures

d) Issuing credit cards to affluent customers

Correct answer: b) Providing financial services to low-income individuals

What is the purpose of collateral in the context of banking?

a) A type of insurance provided by the bank

b) A document proving the identity of the customer

c) An asset that the borrower pledges as security for a loan

d) A type of tax imposed on loan transactions

Correct answer: c) An asset that the borrower pledges as security for a loan

What is the interest rate charged on a loan known as?

a) Premium

b) Dividend

c) Yield

d) Annual Percentage Rate (APR)

Correct answer: d) Annual Percentage Rate (APR)

What is the purpose of a credit score?

a) To determine the customer's social media activity

b) To assess the customer's creditworthiness

c) To track the customer's online shopping habits

d) To determine the customer's tax liabilities

Correct answer: b) To assess the customer's creditworthiness

What does the term "liquidity" refer to in banking?

a) The ability of a bank to meet its financial obligations

b) The process of converting assets into cash

c) The amount of money a customer can withdraw from an ATM

d) The value of a company's stock in the market

Correct answer: a) The ability of a bank to meet its financial obligations

What is the primary function of the Central Bank in a country?

a) To regulate and supervise commercial banks

b) To provide loans to individuals and businesses

c) To facilitate international trade agreements

d) To issue and manage the national currency

Correct answer: d) To issue and manage the national currency

What does the term "KYC" stand for in banking?

a) Know Your Customer

b) Key Yearly Calculation

c) Keep Your Credit

d) Keep Your Cash

Correct answer: a) Know Your Customer

What is the purpose of a savings account?

a) To provide a loan to the bank

b) To receive salary payments

c) To earn interest on deposited funds

d) To transfer funds to other banks

Correct answer: c) To earn interest on deposited funds

What does the term "EMI" stand for?

a) Estimated Monthly Installment

b) Electronic Money Interface

c) Effective Market Interest

d) Excess Money Inflow

Correct answer: a) Estimated Monthly Installment

What is the purpose of a debit card?

a) To withdraw cash from ATMs

b) To earn interest on deposited funds

c) To transfer funds between bank accounts

d) To deposit cash into a bank account

Correct answer: a) To withdraw cash from ATMs

What is the meaning of the term "default" in banking?

a) The total amount of money in a bank account

b) The act of withdrawing money from a bank account

c) The failure to repay a loan or meet financial obligations

d) The process of closing a bank account

Correct answer: c) The failure to repay a loan or meet financial obligations

What is the purpose of a cashier's check?

a) To transfer money between banks

b) To deposit cash into a bank account

c) To withdraw money from an ATM

d) To make a guaranteed payment

Correct answer: d) To make a guaranteed payment

What is the role of a loan officer in a bank?

a) To manage the bank's investment portfolio

b) To assist customers with account-related inquiries

c) To evaluate loan applications and approve or deny loans

d) To reconcile bank statements

Correct answer: c) To evaluate loan applications and approve or deny loans

What does the term "compound interest" mean?

a) Interest calculated only on the principal amount

b) Interest paid in monthly installments

c) Interest calculated on the principal and accumulated interest

d) Interest paid at the end of the loan term

Correct answer: c) Interest calculated on the principal and accumulated interest

What is the purpose of a standing instruction in banking?

a) To freeze a bank account temporarily

b) To transfer a fixed amount of money at regular intervals

c) To request a loan extension

d) To request a change of address

Correct answer: b) To transfer a fixed amount of money at regular intervals

What is the purpose of a bank statement?

a) To notify customers of promotional offers

b) To provide a summary of transactions and balances in a bank account

c) To request a loan from the bank

d) To transfer funds to another bank account

Correct answer: b) To provide a summary of transactions and balances in a bank account

What is the meaning of the term "APY" in banking?

a) Average Personal Yield

b) Annual Percentage Yield

c) Automated Payment Yearly

d) Average Portfolio Yields

Correct answer: b) Annual Percentage Yield

What does the term "PIN" stand for in relation to bank cards?

a) Personal Identification Number

b) Personal Investment Notice

c) Point of Information Network

d) Public Identification Number

Correct answer: a) Personal Identification Number

What is the purpose of a mortgage loan?

a) To provide funding for business expansion

b) To finance the purchase of real estate

c) To obtain a short-term personal loan

d) To transfer funds to an overseas account

Correct answer: b) To finance the purchase of real estate

These questions should give you a good starting point for practicing aptitude tests related to GTI Microfinance Bank.