Showing posts with label Banking Terms. Show all posts
Showing posts with label Banking Terms. Show all posts

What are non-perfoming assets?

What are non-perfoming assets? 
Answer:   Non-performing assets, also called non-performing loans, are loans,made by a bank or finance company, on which repayments or interest payments are not being made on time. A debt obligation where the borrower has not paid any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. The nonperforming asset is therefore not yielding any income to the lender in the form of principal and interest payments.

What is Linked Account?

Linked Account
Any account linked to another account in the same bank where funds can be transferred electronically between accounts and carry out other specified services as well.

What is SEZ or Special Economic Zone?


What is SEZ  or  Special Economic Zone?
Answer : 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

What is Reverse Repo Rate?

A: 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.

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.

Banking awareness questions for IT Specialists

Banking Objective Type Question and Answers for IT Specialists

1.      The _____ states that a foreign key must either match a primary key value in another relation or it must be null.

(a)  entity integrity rule

(b) referential integrity constraint

(c)  action assertion

(d)  composite attribute

(e)  None of these

2.      An applet __________

(a)  is an interpreted program that runs on the client

(b) tracks the number of visitors to a Website

(c)  is a compiled program that usually runs on the client

(d)  collects data from visitors to a Website

(e)  None of these

3.      A _____ sometimes called a boot sector virus, executes when a computer boots up because it resides in the boot sector of a floppy disk or the master boot record of a hard disk.

(a)  system virus

(b) Trojan horse virus

(c)  file virus

(d)  macro virus

(e)  None of these

4.      Which error detection method uses one's complement arithmetic?

(a)  Simply parity check

(b) Checksum

(c)  Two-dimensional parity check

(d)  CRC

(e)  None of these

5.      A result of a computer virus can not lead to ___.

(a)  Disk Crash

(b) Mother Board Crash

(c)  Corruption of program

(d)  Deletion of files

(e)  None of these

6.      The network interface card of LAN is related to following layer of OSI Model-

(a)  Transport

(b) Network

(c)  Data Link

(d)  Physical

(e)  All of these

7.      Which of the following does not describe a data warehouse?

(a)  Subject-oriented

(b) Integrated

(c)  Time-variant

(d)  Updateable

(e)  None of these

8.      Which of the following is true ?

(a)   Logical design is software-dependent

(b) In a distributed database, database is stored in one physical location

(c)  Conceptual design translates the logical design into internal model

(d)  Logical design is software independent

(e)  None of these

9.      A range check _____

(a)  ensures that only the correct data type is entered into a field

(b) verifies that all required data is present

(c)   determines whether a number is within a specified limit

(d)  tests if the data in two or more associated fields is logical

(e)  None of these

10.  The total set of interlinked hypertext documents worldwide is-

(a)   HTTP

(b) Browser

(c)  WWW

(d)  B2B

(e)  None of these