BULLET POINTS - PART: 05(Banking)

BULLET POINTS - PART: 005

BULLET POINTS - PART: 005

01.      The bank branches which can undertake foreign exchange business directly are known as approved dealers in foreign exchange

02.       Insurance cover for bank deposits in the country is provided by DICGC

03.      Deposit Insurance and Credit Guarantee Corporation of India Limited is called as DICGC

04.       The financial literacy includes the following namely; how to invest the funds; how to use the limited funds carefully; how to minimize the risks and how to reinvest the money earned

05.       The loans of very small amounts given to low income group is called as – Micro credit

06.       When a banker talks about CDR, CDR is meant – Corporate Debt Restructuring.

07.       ALM is called as Asset Liability Management

08.       Cash Reserve Ratio and Statutory Liquidity Ratio are terms most closely related to the following industries/markets – Banking industry

09.       CRR and SLR are not related to capital market, commodities market, money market and mutual fund industry

10.       The letter “L” available in the term LAF commonly used in financial/economic news is called as– Liquidity

11.       LAF means liquidity adjustment facility

12.       The banking ombudsman resolves the complaints of the customers in regard to services provided by the banks

13.       Public sector bank, foreign bank, private sector bank and regional rural bank are classified as commercial banks

14.       Urban cooperative bank is not a commercial bank

15.       SEBI means Securities and Exchange Board of India.

16.       Money laundering means – the process of conversion of money obtained illegally to appear to have originated from legitimate sources

17.       Monetary policy as an arm of the economic policy is administered by – Reserve Bank of India

18.       The following is not a primary function of a bank – Facilitating import of goods

19.       The following are the functions of banks – accepting deposits; granting loans; collecting cheques; issuing drafts; selling gold/silver coins

20.       The following represent the correct meaning of Repo rate – Rate for borrowing rupees by banks from RBI

21.       The reserves which can act as a liquidity buffer for commercial banks during crisis times are CRR and SLR

22.       Savings bank accounts are opened by individuals for savings purposes

23.       A customer drawing a cheque on a bank has the right to stop payment of the cheque before it is paid

24.       The following are the functions of a commercial bank namely; providing project finance; settlement of payments on behalf of the customers; issuing credit and debit cards to the customers and providing services such as locker facilities and remittances

25.       Commercial banks do not undertake the following functions: deciding policy rates like CRR, SLR and repo rates

26.       Reserve Bank of India undertakes the following rates: CRR; SLR and repo rates

27.       The conversion of money which is illegally obtained is called as – money laundering

28.       For purchase of white goods, the following loan is granted by the banks – consumer durables loan

29.       A cheque which has completed the stipulated validity period of the cheque is called as – stale cheque (The validity period is 3 months as at present)

30.       Ganesh has been nominated in the savings bank account of Vijaya and Ganesh requests the bank authorities to allow him to operate Vijaya’s account as she is found to be unwell. What will the bank do? – As nomination will come into effect only after the death of the depositor, the bank will not permit

31.       The following is a measure taken by RBI in order to control inflation in the country – raising of Repo and Reverse Repo rates.

32.       What do you understand by the term called as mortgage ?– Making the security of immovable property available as a cover for a home loan availed by the borrower

33.       The following constitutes the largest percentage of retail loans in the country – Home loans

34.       The credit risk to the bank is high from which of these cards – Credit cards

35.       Depreciation of an asset does not occur on account of the following namely; fire in the unit; theft; labour trouble; wear and tear;

36.       The following are the sources of finance for any commercial bank – capital, borrowings from RBI, deposits and cash reserves with RBI

37.       Call money borrowings – is not the source of finance for any commercial bank

38.       The rate at which the domestic currency can be converted into foreign currency and vice versa is known as the – exchange rate

39.       ARCIL – is the asset reconstruction company

40.       IRDA – Insurance Regulatory Development Authority

41.       BCSBI – Banking Codes and Standards Board of India

42.       CIBIL – Credit Information Bureau of India Limited

43.       Exchange rate is the term used in the field of economics

44.       The non performing assets of any bank are called as – sub standard assets, doubtful assets and loss assets

45.       The performing assets of any bank are called as – standard assets

46.       The crossing on a cheque can be cancelled by the drawer of the cheque under his full signature

47.       Banks can accept both demand and time deposits from the public

48.       Interest payable on savings bank is not regulated by RBI

49.       The usual deposit accounts of the banks are – current accounts, savings accounts and term deposit accounts

50.       The fixed deposits, reinvestment deposits and recurring deposits are repayable after an agreed period.