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Monday, 10 November 2014

Best banking terms covering all topics for competitive exams

  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.

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