Best ever Banking terms for competitive exams(Read well score well)
Banking Terms
1.
What is a Repo Rate?
A: Repo rate is the rate at which
our banks
borrow rupees from RBI. Whenever
the banks
have any shortage of funds they can
borrow it
from RBI. A reduction in the repo
rate will help
banks to get money at a cheaper
rate. When
the repo rate increases, borrowing
from RBI
becomes more expensive.
2.
What is Reverse Repo Rate?
A: This is exact opposite of Repo
rate. Reverse
Repo rate is the rate at which
Reserve Bank of
India (RBI) borrows money from
banks. RBI uses
this tool when it feels there is
too much money
floating in the banking system.
Banks are
always happy to lend money to RBI
since their
money is in safe hands with a good
interest. An
increase in Reverse repo rate can
cause the
banks to transfer more funds to RBI
due to this
attractive interest rates.
3.
What is CRR Rate?
A: Cash reserve Ratio (CRR) is the
amount of
funds that the banks have to keep
with RBI. If
RBI decides to increase the percent
of this, the
available amount with the banks
comes down.
RBI is using this method (increase
of CRR rate),
to drain out the excessive money
from the
banks.3
4.
What is SLR Rate?
A: SLR (Statutory Liquidity Ratio)
is the amount
a commercial bank needs to maintain
in the
form of cash, or gold or govt.
approved
securities (Bonds) before providing
credit to its
customers.
SLR rate is determined and
maintained by the
RBI (Reserve Bank of India) in
order to control
the expansion of bank credit. SLR
is determined
as the percentage of total demand
and
percentage of time liabilities.
Time Liabilities
are the liabilities a commercial
bank liable to
pay to the customers on their
anytime demand.
SLR is used to control inflation
and propel
growth. Through SLR rate tuning the
money
supply in the system can be
controlled
efficiently.
5.
What is Bank Rate?
A: Bank rate, also referred to as
the discount
rate, is the rate of interest which
a central bank
charges on the loans and advances
that it
extends to commercial banks and
other
financial intermediaries. Changes
in the bank
rate are often used by central
banks to control
the money supply.
6.
What is Inflation?
A: Inflation is as an increase in
the price of
bunch of Goods and services that
projects the
Indian economy. An increase in
inflation figures
occurs when there is an increase in
the average
level of prices in Goods and
services. Inflation
happens when there are fewer Goods
and more
buyers; this will result in
increase in the price of
Goods, since there is more demand
and less
supply of the goods.
7.
What is Deflation?
A: Deflation is the continuous
decrease in prices
of goods and services. Deflation
occurs when
the inflation rate becomes negative
(below
zero) and stays there for a longer
period.
8.
What is PLR?
A: The Prime Interest Rate is the
interest rate
charged by banks to their most
creditworthy
customers (usually the most
prominent and
stable business customers). The
rate is almost
always the same amongst major
banks.
Adjustments to the prime rate are
made by
banks at the same time; although,
the prime
rate does not adjust on any regular
basis. The
Prime Rate is usually adjusted at
the same time
and in correlation to the
adjustments of the Fed
Funds Rate. The rates reported
below are based
upon the prime rates on the first
day of each
respective month. Some banks use
the name
"Reference Rate" or
"Base Lending Rate" to
refer to their Prime Lending Rate.
9.
What is Deposit Rate?
A: Interest Rates paid by a
depository institution
on the cash on deposit.
Policy Rates:
· Bank Rate: 6.00%
· Repo Rate: 5.25%
· Reverse Repo Rate: 3.75%
Reserve Ratios:
· CRR: 6.00%
· SLR: 25.0%
Lending/Deposit Rates:
· PLR: 11.00%-12.00%.
· Deposit Rate: 6.00%-7.50%.
. Savings Bank rate: 3.5%.
Note: Rates as on 14-05-10.
10.
What is FII?
A: FII (Foreign Institutional
Investor) used to
denote an investor, mostly in the
form of an
institution. An institution
established outside
India, which proposes to invest in
Indian
market, in other words buying
Indian stocks.
FII's generally buy in large volumes
which has
an impact on the stock markets.
Institutional
Investors includes pension funds,
mutual funds,
Insurance Companies, Banks, etc.
11.
What is FDI?
A: FDI (Foreign Direct Investment)
occurs with
the purchase of the “physical
assets or a
significant amount of ownership
(stock) of a
company in another country in order
to gain a
measure of management control” (Or)
A foreign
company having a stake in a Indian
Company.
12.
What is IPO?
A: IPO is Initial Public Offering.
This is the first
offering of shares to the general
public from a
company wishes to list on the stock
exchanges.
13.
What is Disinvestment?
A: The Selling of the government
stake in public
sector undertakings.
14.
What is Fiscal Deficit?
A: It is the difference between the
government’s
total receipts (excluding
borrowings) and total
expenditure. Fiscal deficit in
2009-10 is
proposed at 6.8% of GDP.
15.
What is Revenue deficit?
A: It defines that, where the net
amount
received (by taxes & other
forms) fails to meet
the predicted net amount to be
received by the
government. Revenue deficit in
2009-10 is
proposed at 4.8% of GDP.
16.
What is GDP?
A: The Gross Domestic Product or
GDP is a
measure of all of the services and
goods
produced in a country over a
specific period;
classically a year. GDP during
2008-09 is 6.7%.
17.
What is GNP?
A: Gross National Product is
measured as GDP
plus income of residents from
investments
made abroad minus income earned by
foreigners in domestic market.
18. What is National Income?
A: National Income is the money
value of all
goods and services produced in a
country
during the year.
19.
What is Per Capita Income?
A: The national income of a
country, or region,
divided by its population. Per
capita income is
often used to measure a country's
standard of
living.Per capita income during
2008-09
estimated by CSO: Rs.25, 494.
20.
What is Vote on Account?
A: A vote-on account is basically a
statement
,where the government presents an
estimate of
a sum required to meet the
expenditure that it
incurs during the first three to
four months of an
election financial year until a new
government
is in place, to keep the machinery
running.
21.
Difference between Vote on Account
and
Interim Budget?
A: Vote-on-account deals only with
the
expenditure side of the
government's budget,
an interim Budget is a complete set
of accounts,
including both expenditure and
receipts.
22.
What is SDR?
A: The SDR (Special Drawing Rights)
is an
artificial currency created by the
IMF in 1969.
SDRs are allocated to member
countries and
can be fully converted into
international
currencies so they serve as a
supplement to the
official foreign reserves of member
countries.
Its value is based on a basket of
key
international currencies (U.S.
dollar, euro, yen
and pound sterling).
23.
What is SEZ?
A: SEZ means Special Economic Zone
is the one
of the part of government’s
policies in India. A
special Economic zone is a
geographical region
that economic laws which are more
liberal than
the usual economic laws in the
country. The
basic motto behind this is to
increase foreign
investment, development of
infrastructure, job
opportunities and increase the
income level of
the people.
Abbreviations that may be asked in
Marketing
Aptitude:
· HNI – High Networth
Individual.
· EOQ – Economic Order
quality.
· FDR – Fixed Deposit
Receipts.
· CNP – Cardholder Not
Present.
· PIN – Personal
Identification Number.
· SEO – Search Engine
Optimization.
· CRM – Customer
Relationship
Management.
· BPO – Business
Process Outsourcing.
· VAT – Value Added
Tax.
· IDRA – Industries
Development and
Regulation Act.
· MR – Marginal
Revenue.
· PAN – Permanent
Account Number.
· BEP – Break Even
Point.
· NPA – Non Performing
Assets.
· ATM – Automated
Teller Machine.
· ROA – Return on
Assets.
· M & A – Mergers &
Acquisitions.
· SEBI – Securities
Exchange Board of India.
· GDP – Gross Domestic
Product.
· IPO – Initial Public
Offering.
What
is Viral Marketing?
Marketing by the word of the mouth,
having a
high pass-rate from person to
person is called
Viral marketing. Creating a 'buzz'
in the
industry is an example of viral
marketing.
What
is Bench Marketing?
A comparison of the business
processes with
competitors and improving
prevailing ones is
called bench marketing.
What
is Drip Marketing?
The method of sending promotional
items to
clients is called Drip marketing.
What
is Guerilla Marketing?
Unconventional marketing intended
to get
maximum results from minimal
resources is
nothing but Guerilla Marketing.
What
is Social Media Marketing?
Social media marketing is marketing
using
online communities, social
networks, blog
marketing and more.
What
is Direct Marketing?
Direct Marketing is a form of
advertising that
directly reaches to the customers
on a personal
basis (like phone calls, private
mailings, etc)
rather than traditional channel of
advertising
(like TV, Newspapers, etc).
Types
of Direct marketing:
There are many types of direct
marketing, only
some important types are listed
below and
these are the most form of direct
marketing.
i)Direct Mail Marketing:
Advertising material
sent directly to home and business
addresses.
This is the most common form of
direct
marketing.
ii)Telemarketing: It is the second
most common
form of direct marketing, in which
marketers
contact consumers by phone.
ii)Email Marketing: This type of
marketing
targets customers through their
email accounts.
What
is Indirect Marketing?
Indirect Marketing is the
distribution of a
particular product through a
channel that
includes one or more resellers.
Difference b/w Direct and Indirect
Marketing:
Direct marketing is basically
advertising your
own products or services.
In the same way you might advertise
for
someone else is called Indirect
marketing, is an
increasingly popular way of doing
business.
What
is Internet Marketing?
Internet marketing is the marketing
of products
or services over the Internet.
Internet Marketing is also known as
i-marketing,
web-marketing, online-marketing,
Search
Engine Marketing (SEM) or
e-Marketing.
What
is Digital Marketing?
Digital Marketing is the practice
of promoting
products and services using all
forms of digital
advertising. It includes
Television, Radio,
Internet, mobile and any other form
of digital
media.
Marketing
Mix:
The Marketing Mix model (also known
as the 4
P's) can be used by marketers as a
tool to assist
in defining the marketing strategy.
The idea
was that if you could identify the
right
combination of these elements, your
marketing
would succeed. E. Jerome McCarthy
introduced
the 4 P's of Marketing as a way to
describe the
mix of factors required to
successfully market a
product.
The 4 P’s are:
· Product
· Price
· Promotion
· Place (distribution)
The 5 P’s of marketing is 4 P’s +
People/Packaging/Process/etc.
The 7 P’s of marketing consists of:
· Product
· Price
· Place
· Promotion
· People
· Process
· Physical evidence.
The first 4 P's are considered the
basis of any
marketing process. The last 3 P's
are a recent
addition to the entire marketing
process.
What
is SWOT Analysis?
SWOT stands for Strengths,
Weaknesses,
Opportunities, and Threats. SWOT
analysis is a
tool for auditing an organization
and its
environment. It is the first stage
of planning and
helps marketers to focus on key
issues.
Strengths and weaknesses are
internal factors.
Opportunities and threats are
external factors.
What
is Customer Relationship
Management
(CRM)?
Customer Relationship Management
concerns
the relationship between the
organization and
its customers. It is a process or
methodology
used to learn more about customers'
needs and
behaviors in order to develop
stronger
relationships with them.
What
are the Three Levels of a Product?
· Core Product
· Actual Product
· Augmented Product
What
is Market Research?
Market research is any organized
effort to
gather information about markets or
customers.
Market research is for discovering
what people
want, need, or believe. It can also
involve
discovering how they act. Once that
research is
completed, it can be used to
determine how to
market your product.
What
is Market Information?
To know the prices of the different
commodities
in the market, as well as the
supply and
demand situation.
What
is Market Segmentation?
The division of a market into different
homogeneous groups of consumers is
known as
market segmentation. The purpose
for
segmenting a market is to allow
your marketing
program to focus on the subset of
prospects
that are "most likely" to
purchase your offering.
If done properly this will help to
insure the
highest return for your marketing
expenditures.
What
is Branding?
The essence of a product, its
quality and
competitiveness displayed in the
form of letters,
symbols and colours is known as
branding.
What
is Marketing?
The process of planning and
executing the
concepts, pricing, promotion and
distribution of
ideas/goods/services to satisfy
individual's/organizational goals
is called
marketing.
3. South Africa Currency – Rand.
(Countries,
Currencies, President's/PM's)
4. GDP – Gross
Domestic Product.
(Financial&
Banking Acronyms)
6. Earth Day is observes on – April
22nd.
(Important
Days)
7. NBFC – Non
banking finance company.
8. India - Palestine – Wets
Asia conflict.
9. Bear and Bulls related to – Stock
Market.
10. Special Drawing Rights issued
by – IMF.
11. Term used in Hockey – Penalty
Corner.
13. Which country facing Crisis in
Europe –
Greece.
14. Women’s Reservation in state
assemblies –
33%.
16. Scheme related to Rural Health
Scheme –
NHRM.
17. Who is not related to famous
author – M F
Hussain.
18. India Bangladesh power plant in
which city –
Khulna.
19. WADI in West Bengal - tribal
development
programme.
20. Chairman of 13th finance
commission –
Vijay
Kelkar.
21. Player associated with women’s
cricket –
Mithali
Raj.
22. India and Saudi Arabia signed
pacts in –
Energy
Sector.
23. Which country is not playing
International
cricket –
China.
24. First woman president of Costa
Rica - Laura
Chinchilla.
25. Government has granted 1,200
crore to –
Bundelkhand
region.
26. Viktor Yanukovych has been
elected as –
President
of Ukraine.
27. Banking services to rural
people termed as -
Financial
Inclusion.
28. To which country India has
given 1billion US
dollars – Bangladesh.
29. Teams played in IPL final – Chennai
Super
Kings
vs Mumbai Indians.
30. Which of the following is not
related to
banking and finance – Cell
fusion.
31. Which country has reservation
in parliament
for women like India – France.
33. Recently which country
celebrated
Rabindranath Tagore birthday – China.
34. Which of the following award is
not given in
the not the field of literature - Arjuna
Awards.
35. Which country objected the
meeting
between Dalai Lama and Barack Obama
–
China.
36. Which of the following told
government
must cut its fiscal deficit to 3% -
13th
Finance
Commission.
37. Ela Bhatt chosen for Niwano
Peace Prize,
she is from which Organisation – SEWA.
38. Which of the following is a
book written by R
K Narayan – The
World of Nagaraj.
39. Who won the best male actor in
55th Film
fare awards – Amitabh
bachchan.
40. The details of the companies
financial
position in the annual report of a
company is
known as – balance
sheet.
41. Which of the following cup is
not related to
Cricket – Scindia Gold cup.
No comments:
Post a Comment