Google Ads

Banking related General Awareness --A few definitions

1)Please enter your email id in the "Follow by mail" counter. 2) Introduce this blog to your friends. 3) Please download the contents on to your PC/laptop and store. 4) Hindi version can be had by searching in in Hindi. 5) Search different topics like Bank related general awareness, computer awareness, QA, Reasoning, English in the blog using labels. Also common searches like CWE PO, CWE CLERKS will get you many blogs. Best wishes.

Define any five of the following terms:
(a) Non Performing Assets.
An asset, including a leased assets, becomes non-performing when it ceases to generate income for
the bank. A non-performing asset is defined as a credit facility in respect of which the interest and/or
installments of Principal has remained past due for a specified period of time.
With a view to moving towards international practices and to ensure greater transparency, it has
been decided to adopt the “90 days over due” norm for identification of non-performing assets from
the year ending March 31, 2004.
(b) Interest Rate Risk
The risk faced by an investor due to variability in the interest rate during the life of an investment.
Interest rate risk occurs when applying different bases of interest rates to assets and corresponding
(c ) Reverse Repo
It is an action by the Reserve Bank of India where the securities purchased earlier are sold back. By
this process money supply will increase.
(d) Global Depository Receipts
A Bank certificate issued in more than one country for shares in the foreign company. The share are
held by a foreign branch. These shares are traded as domestic shares but are offered for sale
globally through various bank branches.
(e) Core inflation
That part of inflation which is influenced by demand factors and not by transitory supply stocks such
as sudden increase in certain items of food grains or other essential commodities like gas, kerosene,
oil or sugar. It is the inflation rate of a particular basket of commodities as against a general inflation
(f) RTGs
This refers Real Time Gross settlement and this process adjustments are taking place instantaneously.
(g) REER
This refers to Real Effective Exchange Rate. The nominal exchange rate is the price of one currency
in terms of another. Real Effective Exchange Rate tells us about the purchasing power of the currency
and whether the exchange rate is competitive in international market.

No comments

Powered by Blogger.