What is repo rate? Ans: The rate at which central bank lends to the commercial banks against govt.

securities. What is the reverse repo rate? Ans: The rate at which central bank borrows money from banks. What are the main differences you see in a private bank and public bank? What is balance of payment? Ans: Comparison between total receipts and payments arising from a countrys international trade in goods, services and financial transactions. What is BASEL 2 &3? Ans: Check Wikipedia for details What is the importance of basel 2 in the present banking environment? Differece between Demand draft & Pay order? what is clearing house? Ans: An agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery and reporting trading . what is soft currencies? Difference between banking & non-banking financial institution.

 Similarity between USA/India and Bangladesh in-terms of economy

Mudarabah

"Mudarabah" is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The capital investment comes from the first partner, who is called the "rabb-ul-mal", while the management and work is the exclusive responsibility of the other party, who is called the "mudarib". The Mudarabah (Profit Sharing) is a contract, with one party providing 100 percent of the capital and the other party providing its specialist knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. If there is a loss, the first partner "rabbul-mal" will lose his capital, and the other party "mudarib" will lose the time and effort invested in the project. Musharakah (joint venture) Musharakah is a relationship between two parties or more that contribute capital to a business and divide the net profit and loss pro rata. This is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assess an imputed rent and will share it as agreed in advance.[40] All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixedincome investing (i.e. issuance of loans).