Commercial Bank Flashcards
16 cards from real Banking Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 16 Commercial Bank flashcards as text
When the rate of inflation increases, the purchasing power of money falls.
Answer: decreases
People's capacity to purchase products is reduced by price inflation. If an employee's pay stays the same but the cost of things rises, they will be able to purchase fewer items. People will be able to purchase more goods when wages rise.
When was the first publication of OMBUDS MEN SCHEME?
Answer: Thu Jun 01 00:00:00 UTC 1995
The year 1995 saw the introduction of this program.
What exactly is MSF?
Answer: Marginal Standing Facility
The margin standing facility (MSF) rate is the cost at which the scheduled banks can overnight borrow money from the RBI in exchange for government assets.
Which NPCI-launched Indian card program?
Answer: RuPay
The card program launched by NPCI is called RuPay.
Which central bank is regarded as the mother of them all?
Answer: Bank of England
The Bank of England, which was established in 1694, is the UK's central bank. The Bank, also referred to as the "Old Lady" of Threadneedle Street, serves to further the welfare of the British people by preserving monetary and financial stability.
What year did the printing of Rs. 5 notes start up again?
Answer: 2009
In 2009, the production of Rs. 5 notes, which had previously ceased, resumed.
When the inflation rate rises
Answer: purchasing power of money decreases
The economy experiences a money shortage as a cause of increasing inflation, which decreases the purchasing power.
What is the name of the percentage of cash reserves that banks must maintain with the RBI?
Answer: Cash Reserve Ratio
Commercial banks are required to retain a minimum amount of reserves, either in cash or as deposits with the central bank, known as the cash reserve ratio (CRR), which is a percentage of all customer deposits. The CRR is determined in accordance with the policies of the nation's central bank.
What does PPP's entire name mean?
Answer: Purchasing power parity
A theory of economics known as purchasing power parity (PPP) roughly calculates the total adjustment that must be made to the currency exchange rate between nations in order for the exchange to be equal to the purchasing power of each nation's currency.
Business banks are
Answer: Joint stock banks
A commercial bank is a bank that provides services to both businesses and the general population.
What Does Repo Rate Mean?
Answer: rate at which RBI lends to commercial banks
Repo rate refers to the interest rate at which the RBI lends money to commercial banks. It serves as a tool for monetary policy. Banks can borrow money from the RBI if they are short on cash. Banks are able to borrow money at a lower cost when the repo rate is reduced, and vice versa.
Which of the following might serve as a diversification example?
Answer: Buying in 100 largest companies
The concept of diversification involves allocating resources in a way that minimizes exposure to any one specific asset or risk. Investing in a variety of assets can help lower risk or volatility, which is a frequent step towards diversification.
Financial inclusion entails offering?
Answer: Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank
In contrast to financial exclusion, which occurs when those services are unavailable or unaffordable, financial inclusion or inclusive finance refers to the provision of financial services at reasonable costs to sectors of the underprivileged and low-income segments of society.
What does AMC in mutual funds stand for in full?
Answer: Assest Management Company
An asset management company (AMC) is a business that makes investments in securities that align with its stated financial objectives using funds collected from clients. Investors have more investment options and diversity thanks to asset management firms than they otherwise would.
When did the SARFAESI Act begin?
Answer: 2002
The SARFAESI Act went into effect in 2002.
Giving a customer banking services without allowing him to enter the bank branch is known as .
Answer: Virtual banking
Banking is done using the internet and mobile devices.