Académique Documents
Professionnel Documents
Culture Documents
com
Bank Interview
ss.
pre
1. What is Balance of Trade?
ord
The value of a country’s exports minus the value of its imports. Unless specified as the balance
of merchandise trade, it normally incorporates trade in services, including earnings (interest,
dividends, etc.) on financial assets.
credits; payments out of the country (payments) are entered as negative numbers called debits. A
single number summarizing all of a country’s international transactions: the balance of payments
surplus.
ss.
9. What is Gold Standard?
A monetary system in which both the value of a unit of the currency and the quantity of it in
circulation are specified in terms of gold. If two currencies are both on the gold standard, then
pre
the exchange rate between them is approximately determined by their two prices in terms of
gold.
ord
A country’s receipts minus payments for capital account transactions.
expensive. On March 4, 2009 it was 5% in India (please check the latest figure by RBI)
ss.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo
rate our banks adjust their lending or investment rates for common man. On March 4, 2009
Reverse Repo Rate is 3.5% (please check latest rate by RBI)
pre
19. What is SLR Rate?
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
ord
the expansion of bank credit.
the average level of prices in Goods and services. Inflation happens when there are less 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..
A fall in the general level of prices. Unlikely unless the rate of inflation is already low, it may
then be due either to a surge in productivity or, less favorably, to a recession. 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.
An economic model of international trade in which goods are exchanged for goods without the
com
existence of money. Most theoretical trade models take this form in order to abstract from
macroeconomic and monetary considerations.
26.What is Basel I?
Also known at Basel Capital Accord, this was an agreement in 1988 by the Basel Committee of
ss.
central bankers to measure the credit risk of commercial banks and set minimum standards for
bank capital in order to reduce the likelihood of international repercussions due to bank failures.
pre
The Basel II Framework describes a more comprehensive measure and minimum standard for
capital adequacy that national supervisory authorities are now working to implement through
domestic rule-making and adoption procedures. It seeks to improve on the existing rules by
aligning regulatory capital requirements more closely to the underlying risks that banks face. In
ord
addition, the Basel II Framework is intended to promote a more forward-looking approach to
capital supervision, one that encourages banks to identify the risks they may face, today and in
the future, and to develop or improve their ability to manage those risks. As a result, it is
intended to be more flexible and better able to evolve with advances in markets and risk
management practices.
K.w
The efforts of the Basel Committee on Banking Supervision to revise the standards governing the
capital adequacy of internationally active banks achieved a critical milestone in the publication
of an agreed text in June 2004.
expenditures completely.
India’s fiscal deficit widened to Rs. 541.58 billion in April, 2009 as compared to Rs. 329.39
billion rupees in April 2008.
runs a parallel economy adversely affecting the distribution of wealth & income in the economy.
com
The total amount of black money globally is estimated between $2.1 and 2.5 trillion. This is
roughly about seven percent of the world’s GDP.
ss.
government-sanctioned channels. Black markets tend to arise when a government tries to fix a
price without itself providing all of the necessary supply or demand. Black markets in foreign
exchange almost always exist when there are exchange controls.
pre
34.What is a blue chip company? Why it is blue color only used in such companies?
A blue chip is concerned with stocks & shares of company, which are well established and
whose purchase is considered extremely safe. Due to stable earnings and no extensive liabilities
these companies are called blue chip companies.
ord
The term blue chip comes from casinos, where blue chips stand for counters of the highest value.
Most blue chip stocks pay regular dividends, even when business is faring worse than usual.
tagged as LDC. a LDC must have an income of $ 900 to escape this tag. Besides if thse countries
show human resource weakness based on indicators of nutrition, health, education and adult
literacy and also or economic vulnerability based on instability of economy . Currently UN has
tagged 49 countries in LDC. India is not an LDC.
heO
are found in all six of the Bank’s geographical regions. They cover a wide income range, with
the highest income MIC having a per capita income 10 times that of the lowest.
ss.
the market for its buyers.
pre
for investigating the mergers, market shares & conditions besides regulating firms. CCI will
ultimately replace the Monopolies and Restrictive Trade Practices Commission (MRTPC)
ofIndia.
ord
42.What is Lead Bank Scheme?
Lead bank scheme was introduced around 40 years ago and recently it was in the news as a high
level committee chaired by RBI Deputy Governor Usha Thorat was constituted to review and
revitalize this scheme. The scheme aims at facilitating credit delivery to the farfetched areas
ofIndia. There are members of the committee from NABARD and SIDBI. Thus the scheme
focuses upon financial inclusion.
K.w
The Opinion of this committee is that full financial inclusion is possible only if it makes a
facility of opening of no frill accounts backed by other specialized services.
clearing of their transactions. For instance, if the bank pays a demand drawn on it by its
correspondent bank, there is no delay because the foreign corresponded bank would already have
credited the nostro account of the paying bank while issuing the demand draft.
A vostro account is maintained by a foreign bank in India with their corresponding bank.
From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3 years.
This is 10.3 % of all the imports of India.
A system of setting currency values whereby the participating countries commit to fix the prices
of their domestic currencies in terms of a specified amount of gold.
as a clean float.
ss.
inIndia or abroad or change otherwise than within the same city, town or village, the location of
the existing place of business without the prior approval of the ReserveBank of India (RBI).
Thus, it is mandatory for RRBs to seek prior approval/ license from Rural Planning and Credit
Department (RPCD) of RBI before opening of new branches/offices.
pre
RRB should fulfill the following conditions to become eligible for opening of new branch/es.
1. It should not have defaulted in maintenance of SLR and CRR during the last two years.
2. The RRB should be making operational profits, its net worth should show improvement 3. Its
net NPA ratio should not exceed 8 per cent.
ord
49.What is concept sustainable Development?
Meeting the needs of the present without compromising the ability of future generations to meet
their needs is called sustainable development. This concept is popular in present context of
development.
Vande mataram schem is a nationwide programme aimed at improving ante and post-natal care–
which was launched on February 9, 2004. The scheme envisages free ante and post-natal check-
ups, tips to avoid nutritional problems and anemia and counseling on small family norm and is a
major initiative in Public Private partnerships during emergency.
heO
ss.
undertaken in the last few years.
‘Jago Grahak Jago’ has become the focal theme through which issues concerning the functioning
of almost all Government Departments having a consumer interface can been addressed. To
achieve this objective joint campaigns have been undertaken/are being undertaken with a number
pre
of Government Departments.
ord
revolving credit facilities are typically used to provide liquidity for a company’s day-to-day
operations.The credit cards are examples of revolving credit. They are renewed automatically
until the notice of cancellation is receieved. The time of repayment is specified.
form of paper, electronic or debt-based “IOUs” which have in the past been used in place of hard
currency. This currency has limited convertibility into gold and other currencies.
The resources and the inputs which are required to produce a good or service is called factor of
production. The basic categories are land labor and capital.
are combined with this, the marginal productivity of variable factors will eventually decline.
According to this relationship, in a production system with fixed and variable inputs (say factory
size and labor), beyond some point, each additional unit of the variable input yields smaller and
smaller increases in output. Conversely, producing one more unit of output costs more and more
in variable inputs.
ww