Computer: MS Office Quiz

1. Which of the following is not valid version of MS Office?
A) Office XP
B) Office Vista
C) Office 2007
D) None of above

2. You cannot close MS Word application by
A) Choosing File menu then Exit submenu
B) Press Alt+F4
C) Click X button on title bar
D) From File menu choose Close submenu

3. The key F12 opens a
A) Save As dialog box
B) Open dialog box
C) Save dialog box
D) Close dialog box

4. What is the short cut key to open the Open dialog box?
A) F12
B) Shift F12
C) Alt + F12
D) Ctrl + F12

5. A feature of MS Word that saves the document automatically after certain interval is available on
A) Save tab on Options dialog box
B) Save As dialog box
C) Both of above
D) None of above

6. Where can you find the horizontal split bar on MS Word screen?
A) On the left of horizontal scroll bar
B) On the right of horizontal scroll bar
C) On the top of vertical scroll bar
D) On the bottom of vertical scroll bar

7. Which of the following is not available on the Ruler of MS Word screen?
A) Tab stop box
B) Left Indent
C) Right Indent
D) Center Indent
E) All of them are available on ruler

8. What is place to the left of horizontal scroll bar?
A) Tab stop buttons
B) View buttons
C) Split buttons
D) Indicators
E) None of above

9. Which file starts MS Word?
A) Winword.exe
B) Word.exe
C) Msword.exe
D) Word2003.exe

10. How many ways you can save a document?
A) 3
B) 4
C) 5
D) 6

11. If you want to keep track of different editions of a document which features will you use?
A) Editions
B) Versions
C) Track Change
D) All of above

12. Background color or effects applied on a document is not visible in
A) Web layout view
B) Print Layout view
C) Reading View
D) Print Preview

13. What is a portion of a document in which you set certain page formatting options?
A) Page
B) Document
C) Section
D) Page Setup

14. Borders can be applied to
A) Cells
B) Paragraph
C) Text
D) All of above

15. Which of the following is not a type of page margin?
A) Left
B) Right
C) Center
D) Top

16. What is the default left margin in Word 2003 document?
A) 1"
B) 1.25"
C) 1.5"
D) 2"

17. What is gutter margin?
A) Margin that is added to the left margin when printing
B) Margin that is added to right margin when printing
C) Margin that is added to the binding side of page when printing
D) Margin that is added to the outside of the page when printing

18. Portrait and Landscape are
A) Page Orientation
B) Paper Size
C) Page Layout
D) All of above

19. If you need to change the typeface of a document, which menu will you choose?
A) Edit
B) View
C) Format
D) Tools

20. Which of the following is not a font style?
A) Bold
B) Italics
C) Regular
D) Superscript


Answers
1-B
2-D
3-A
4-D
5-A
6-C
7-D
8-B
9-A
10-A
11-B
12-D
13-C
14-D
15-C
16-B
17-C
18-A
19-C
20-D

00:34 - By Unknown 0

LIC Recruitment of AAO (Actuarial)

Life Insurance Corporation of India (LIC) is inviting online applications from eligible Indian Citizens for filling up the posts of Assistant Administrative Officer (Actuarial).


Name of the Post : Assistant Administrative Officer (Actuarial)

Number of Vacancies : 30 Posts (4 SC, 2 ST, 8 OBC, 16 General)

Important Dates :
Start date for On-line Registration of Applications - 20th March 2014
Last date for On-line Registration - 6th April 2014
Download of Call Letter for Examination - 1st Week of May, 2014
Date of On-line Examination (Tentative) - 11th May 2014

Eligibility : Candidates should have compulsorily passed paper CT1 and CT5 plus 4 or more other papers of the examination conducted by the Institute of Actuaries, London/Actuarial Society of India. (Total 6 or more papers) as on the date of eligibility i.e. 1st March, 2014.

Application Fee :
Rs. 50/- for SC / ST / PWD
Rs. 500/- for Others

Click here to View the notification.

Check here to Apply On-line.

00:32 - By Unknown 0

Money and Banking Terminology

1.    ATM 

      Meaning: Abbreviation of Automated Teller Machine: a machine, usually in a wall outside a bank, from which you can take money out of your bank account using a special card.

2.    Bank balance Meaning: The amount of money in a bank account.

Example: I'd like to check my bank balance, please.

3.    Bank statement Meaning: A printed record of the money put into and removed from a bank account

4.    Bounce

Meaning: when a check cannot be paid or accepted by a bank because of a lack of money in the account:

Example: I had to pay a penalty fee when my check bounced.

5.    Cash

Meaning: (noun) money in the form of notes and coins, rather than checks or credit cards:
Example: Do you have any cash on you?

6.    Cash a check/Cheque

Meaning: (verb) to exchange a check for cash:

Example: Would you cash a check for me?

7.    Checkbook (US) / Chequebook (UK)

Meaning: a book of checks / cheques with your name printed on them which is given to you by your bank to make payments with.

8.    Check (US) / Cheque (UK)

Meaning: a printed form, used instead of money, to make payments from your bank account:

Example: I wrote him a check for $100.

9.    Credit

1. Money in your bank account.

Example: I was relieved to see from my statement that my account was in credit

2. A method of paying for goods or services at a later time, usually paying interest as well as the original money.

Example: They decided to buy the car on credit.

10.  Credit card

Meaning: a small plastic card which can be used as a method of payment, the money being taken from you at a later time.

11.  Checking account (US) / Current account (UK)

Meaning: a bank account that you can take money from at any time and which usually earns little or no interest.

12.  Debit

Meaning: (a record of) money taken out of a bank account.

The account was in debit at the end of the month (= more money had been spent than was in the account at that time).

13.  Debt

Meaning: money, which is owed to someone else, or the state of owing something:

Example: He managed to pay off his debts in two years.
Example: The firm ran up huge debts.

14.  Deposit (US) / pay in (UK)

Meaning: to put money into a bank account.

Example: If you go to the bank, will you deposit these checks for me?

15.  Direct debit

Meaning: an arrangement for making payments, usually to an organization, in which your bank moves money from your account into the organization's account at regular times:

Example: I pay my electricity bill by direct debit.

16.  Expense

Meaning: when you spend or use money.

Example: Buying a bigger car has proved to be well worth the expense.Example: We've just had a new garage built at great expense.

17.  Insurance

Meaning: an agreement in which you pay a company money and they pay your costs if you have an accident, injury, etc:

Example: life/health/car/travel insurance

18.  Interest

1. money which is charged by a bank or other financial organization for borrowing money.

Example: I got a loan with an interest rate of 10%.

2. money that you earn from keeping your money in an account in a bank or other financial organization.

Example: You should put the money in a savings account where it will earn interest.

19.  Loan

Meaning: a sum of money which is borrowed, often from a bank, and has to be paid back, usually together with an additional amount of money that you have to pay as a charge for borrowing.

Example: She's trying to get a $100 000 loan to start her own business.

20.  Payee

Meaning: a person who money is paid to or should be paid to.

21.  Savings account (US) / deposit account (UK)

Meaning: a bank account in which you usually leave money for a long time and which pays you interest.

22.  Standing account (UK)

Meaning:an instruction to a bank to pay a particular amount of money at regular times from a person's bank account to another bank account (compare direct debit)

23.  Tax

Meaning: (an amount of) money paid to the government, which is based on your income or of the cost of goods or services you have bought:

Example: They're putting up the tax on cigarettes.

24.  Traveler's check

Meaning: a piece of paper that you buy from a bank or a travel company and that you can use as money or exchange for the local money of the country you visit

25.  Withdraw

Meaning: to take money out of a bank account.

00:28 - By Unknown 0

Trend of Internet Banking

Dear readers, here we are presenting an article on Internet Banking. As Internet Banking service is provided by every Banks and has common activity and also plays an important role in our daily life.

Internet Banking: Banking is one of the oldest professions known to mankind. It has undergone many a transition and internet banking is the latest in the list of such transformations.

Internet banking has brought about a 360 degree change in the entire banking industry. Such is the change in scenario that timing is no longer a constraint and you can finish your day-today chores and bank leisurely when you have the time. This method has also made shopping and bill payment very easy and convenient. Long queues for these activities have now become history.

Functions of internet banking:-

1. An access to account data: Internet banking systems help customers in acting as a medium through which data related to their accounts (like transaction details, balance enquiry, status of particular transaction etc) can be accessed from any point where internet facility is available. This can be further extended to gathering of information related to credit card balances, bill payment date etc.

2. A mode of operational interaction: Perhaps one of the popular functions of internet banking is that it can transfer funds. This includes transfer of money from a customer’s account to another person’s account in a different or same bank, payment of utility bills (telephone, gas, electricity etc) or any other transfer where the bank has channels with the point where the money is supposed to reach. These operations require instructions from the account holder and this instruction or request can be made through internet.

Security and operation:-

One of the major concerns of people with respect to internet banking is the safety related to data of bank account, transactional information and also the access path (account number, PIN etc) of their accounts. There are set of regulations laid down by Reserve Bank of India, that guide banks on the security aspects of internet banking.

The banks are bound to maintain certain security policies related to internet banking that are approved by the managing directors of the bank. Further there are specifications related to use of updated technology for banking sites and also the network and data base is to be administered and tested on regular intervals by a separate department of a bank that works on these major aspects.

There will be a unique user ID and password provided to individual accounts of a customer and the web page where these details of an account are to be updated will generally be secured.

Transfer of fund is done through two basic modes:

1. Real Time Gross Settlement is a mode where the transaction to an account takes place more spontaneously (quickly). There are certain minimum limits (Rs 2 lakh) above which this mode of transaction can be used.

2. National Electronic Funds Transfer (NEFT) and this mode of transaction takes place in batches (batch of transactions say 4 or 5) in specified regular intervals of time.

Benefits of Internet banking:

Businesses rely on efficient and rapid access to banking information for cash flow reviews, auditing and daily financial transaction processing. E-banking offers ease of access, secure transactions and 24-hour banking options.

From small start-up companies to more established entities, small businesses rely on e-banking to eliminate runs to the bank and to make financial decisions with updated information. In an information-driven business climate,

Risks Involved in internet banking:-

There are many threats that deter a person from using internet banking. These threats are also being faced by banking channels of developed countries. The names of such threats include Phishing, viruses, theft of user identity and password through other means etc. There are few basic points a customer has to remember when it comes to use of internet banking facility.

·         The net banking facility should be availed from personal computer only and not at cyber centers or any other places.

·         The address of the site of the bank should be noted by the customer and it is good to type the address of site instead of reaching the site through other links.

·         It is good to provide relevant details of the user ID and password only in relevant pages of banking site.

00:28 - By Unknown 0

Reasoning: Statement and Assumption

In each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.

Give answer

(A) If only assumption I is implicit
(B) If only assumption II is implicit
(C) If either I or II is implicit
(D) If neither I nor II is implicit
(E) If both I and II are implicit.

1. Statement: "You are hereby appointed as a programmer with a probation period of one year and your performance will be reviewed at the end of the period for confirmation." - A line in an appointment letter.

Assumptions:
I. The performance of an individual generally is not known at the time of appointment offer.
II. Generally an individual tries to prove his worth in the probation period.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

2. Statement: It is desirable to put the child in school at the age of 5 or so.

Assumptions:
I. At that age the child reaches appropriate level of development and is ready to learn.
II. The schools do not admit children after six years of age.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

3. Statement: "In order to bring punctuality in our office, we must provide conveyance allowance to our employees." - In charge of a company tells Personnel Manager.

Assumptions:
I. Conveyance allowance will not help in bringing punctuality.
II. Discipline and reward should always go hand in hand.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

4. Statement: Unemployment allowance should be given to all unemployed Indian youth above 18 years of age.

Assumptions:
I. There are unemployed youth in India who needs monetary support.
II. The government has sufficient funds to provide allowance to all unemployed youth.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

5. Statement: "If you trouble me, I will slap you." - A mother warns her child.

Assumptions:
I. With the warning, the child may stop troubling her.
II. All children are basically naughty.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

6. Statement: The State government has decided to appoint four thousand primary school teachers during the next financial year.

Assumptions:
I. There are enough schools in the state to accommodate four thousand additional primary school teachers.
II. The eligible candidates may not be interested to apply as the government may not finally appoint such a large number of primary school teachers.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

7. Statement: A warning in a train compartment - "To stop train, pull chain. Penalty for improper use Rs. 500."

Assumptions:
I. Some people misuse the alarm chain.
II. On certain occasions, people may want to stop a running train.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

8. Statement: If it is easy to become an engineer, I don't want to be an engineer.

Assumptions:
I. An individual aspires to be professional.
II. One desires to achieve a thing which is hard earned.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

9. Statement: The concession in rail fares for the journey to hill stations has been cancelled because it is not needed for people who can spend their holidays there.

Assumptions:
I. Railways should give concession only to needy persons.
II. Railways should not encourage people to spend their holidays at hill stations.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

10. Statement: "The bridge was built at the cost of Rs. 128 crores and even civil bus service is not utilizing it, what a pity to see it grossly underutilized." - A citizen's view on a new flyover linking east and west sides of a suburb.

Assumptions:
I. The building of such bridges does not serve any public objective.
II. There has to be some accountability and utility of money spent on public projects.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit


ANSWERS:
1. E
2.A
3.B
4.A
5.A
6.A
7.E
8.B
9.A
10.B

00:22 - By Unknown 0

Professional Knowledge Quiz

Q.1 NULL is

(A) the same as 0 for integer
(B) the same as blank for character
(C) the same as 0 for integer and blank for character
(D) not a value


Q.2 Which of the following is record based logical model?
(A) Network Model
(B) Object oriented model
(C) E-R Model
(D) None of these

Q.3 A data dictionary is a special file that contains:
(A) The name of all fields in all files.
(B) The width of all fields in all files.
(C) The data type of all fields in all files.
(D) All of the above.

Q.4 A file manipulation command that extracts some of the records from a file is called
(A) SELECT
(B) PROJECT
(C) JOIN
(D) PRODUCT

Q.5 The physical location of a record is determined by a mathematical formula that transforms  a file key into a record location is :
(A) B-Tree File
(B) Hashed File
(C) Indexed File
(D) Sequential file.

Q.6 Using Relational Algebra the query that finds customers, who have a balance of over 1000 is
(A) PCustomer_name(s balance >1000(Deposit))
(B) s Customer_name(Pbalance >1000(Deposit))
(C) PCustomer_name(s balance >1000(Borrow))
(D) s Customer_name(Pbalance >1000(Borrow))

Q.7 A primary key is combined with a foreign key creates
(A) Parent-Child relation ship between the tables that connect them.
(B) Many to many relationship between the tables that connect them.
(C) Network model between the tables that connect them.
(D) None of the above.

Q.8 In E-R Diagram derived attribute are represented by
(A) Ellipse
(B) Dashed ellipse
(C) Rectangle
(D) Triangle

Q.9 Cross Product is a:
(A) U nary Operator
(B) Ternary Operator
(C) Binary Operator
(D) Not an operator

Q.10 An instance of relational schema R (A, B, C) has distinct values of A including NULL values. Which one of the following is true?
(A) A is a candidate key
(B) A is not a candidate key
(C) A is a primary Key
(D) Both (A) and (C)

Q.11 Consider the join of a relation R with relation S. If R has m tuples and S has n tuples, then the maximum size of join is:
(A) mn
(B) m+n
(C) (m+n)/2
(D) 2(m+n)

Q.12 The natural join is equal to :
(A) Cartesian Product
(B) Combination of Union and Cartesian product
(C) Combination of selection and Cartesian product
(D) Combination of projection and Cartesian product

Q.13 Which one of the following is not true for a view:
(A) View is derived from other tables.
(B) View is a virtual table.
(C) A view definition is permanently stored as part of the database.
(D) View never contains derived columns.

Q.14 A primary key if combined with a foreign key creates
(A) Parent-Child relationship between the tables that connect them.
(B) Many to many relationship between the tables that connect them.
(C) Network model between the tables that connect them.
(D) None of the above.

Q.15 In E-R Diagram relationship type is represented by
(A) Ellipse
(B) Dashed ellipse
(C) Rectangle
(D) Diamond


ANSWERS:
Ans 1: D
Ans 2: A
Ans 3: D
Ans 4: A
Ans 5: B
Ans 6: A
Ans 7: A
Ans 8: B
Ans 9: C
Ans 10: B
Ans 11: A
Ans 12: D
Ans 13: C
Ans 14: A
Ans 15: D

00:20 - By Unknown 0

State Bank of Travancore Recruitment of Support Staff

State Bank of Travancore is inviting applications for the recruitment of Support Staff at SBT - Rural Self Employment Training Institutes (RSETIs) on contract basis (3 Years).

All interested candidates should apply before 31st March 2014 ( no on-line application mode)

Vacancy Details :
Faculty - 2 Posts per centre
Office Assistants - 2 Posts per centre
Attender - 1 Post per centre

Work Locations :  Alappuzha, Kottayam, Pathanamthitta and Wynad

NOTE: No application fee to apply.

How to Apply : The application should be submitted only in the prescribed proforma which can be downloaded from below link with all particulars supported by relevant certificates to be sent by Registered Post by mentioning the nature of assignment applied and RSETI preferred on the cover of the envelop to “The Deputy General Manager (FI & AGRI), State Bank of Travancore, Head Office, Poojappura, Thiruvananthapuram – 695012"

Click here to View the Advertisement.

Click here to Download the Application Format.

00:19 - By Unknown 0

Madhya Bihar Gramin Bank Recruitment

Madhya Bihar Gramin Bank invites applications from the candidates for the following post who have been declared qualified at the Online CWE for RRBs conducted by IBPS during September/ October 2013.


1. Officer in Middle Management Grade (Scale III)
2. Officer in Middle Management Grade (Scale II)
3. Officer in Junior Management (Scale I) Cadre
4. Office Assistant (Multi purpose)

IMPORTANT DATES:
Payment of Application Fees - 27.03.2014 to 11.04.2014
Opening date for Online Registration - 27.03.2014
Last Date for Online Registration - 11.04.2014

Note: On-line link will be available from 27.03.2014.

Click here to View the Advertisement.

Click here to Apply On-line.

00:19 - By Unknown 0

Banking, Motivation, SSC

 Quarter Life Crisis .... Guess this is what happens to us sometimes

In midst of all the speculations on results, examinations and politics we can not deny the fact that may of us goes through what they call it "Quarter Life Crisis" and this is the time when the intensity of the same increases. This article has been very well summed up by Brenda Della Casa, Editor in Chief Preston Bailey. You start feeling insecure and wonder where you will be in a year or two, but then get scared because you barely know where you are now.
It is the time when you stop going along with the crowd and start realizing that there are a lot of things about yourself that you didn't know and may or may not like. You start realizing that people are selfish and that, maybe, those friends that you thought you were so close to aren't exactly the greatest people you have ever met and the people you have lost touch with are some of the most important ones. What you do not realize is that they are realizing that too and are not really cold or catty or mean or insincere, but that they are as confused as you.

You look at your current job (if you are working), it is not even close to what you thought you would be doing or maybe you are looking for one and realizing that you are going to have to start at the bottom and are scared. You miss the comforts of college, of groups, of socializing with the same people on a constant basis. But then you realize that maybe they weren't so great after all.

You are beginning to understand yourself and what you want and do not want. Your opinions have gotten stronger. You see what others are doing and find yourself judging a bit more than usual because suddenly you realize that you have certain boundaries in your life and add things to your list of what is acceptable and what is not.

You are insecure and then secure. You laugh and cry with the greatest force of your life. You feel alone and scared and confused. Suddenly change is the enemy and you try and cling on to the past with dear life but soon realize that the past is drifting further and further away and there is nothing to do but stay where you are or move forward.

You get your heart broken and wonder how someone you loved could do such damage to you or you lay in bed and wonder why you can't meet anyone decent enough to get to know better. You love someone but maybe love someone else too and cannot figure out why you are doing this because you are not a bad person.

You go through the same emotions and questions over and over and talk with your friends about the same topics because you cannot seem to make a decision. You worry about loans and money and the future and making a life for yourself and while winning the race would be great, right now you'd just like to be a contender!

What you may not realize is that everyone reading this relates to it. We are in our best of times and our worst of times, trying as hard as we can to figure this whole thing out and always remember that lot of times you will Think you can or Think You Can't, You're always Right.

00:16 - By Unknown 0

Aryavart Gramin Bank Final Result

Gramin Bank of Aryavart has announced the Final Results of the following posts:

1. Officer in Middle Management Grade (Scale III)
2. Officer in Middle Management Grade (Scale II)
3. Officer in Junior Management (Scale I) Cadre
4. Office Assistant (Multi purpose)

Click here to view the results notice.

Click here to view the list of selected candidates for Office Assistants.

Click here to view the list of selected candidates for Scale I Officers.

Click here to view the list of selected candidates for Scale II Officers (GBO).

Click here to view list of selected candidates for the posts of Scale II Officers (IT, Law & Marketing)

Click here to view the list of selected candidates for the posts of Scale III Officers.

All the best!!!

00:14 - By Unknown 0

Saptagiri Grameena Bank Interview Schedule

Saptagiri Grameena Bank has released the list of candidates short listed for interview for the following post:

1. Officer Scale - I
2. Office Assistant


Click here to View the list of selected candidates.

All the best!!!

00:12 - By Unknown 0

Chaitanya Godavari Grameena Bank Interview Schedule

 Chaitanya Godavari Grameena Bank has released the list of candidates short listed for interview for the following post:

1. Officer Scale - I
2. Officer Scale - II
3. Officer Scale - III
4. Office Assistant

Click here to View the Result.

All the best!!!

00:12 - By Unknown 0

Professional Knowledge Quiz

Ques. 1 Database management systems are used to

A. eliminate data redundancy
B. establish relationships among records in different files
C. manage file access
D. none of above


Ques. 2 Ascending order of data hierarchy is
A. bit->byte->record->field->file->database
B. bit->byte->field->record->file->database
C. byte->bit->field->record->file->database
D. byte->bit->field->file->record->database

Ques. 3 Which among following is not a router function
A. Packet Switching
B. Packet Filtering
C. Internetwork communication
D. Forwarding broadcasts by default

Ques. 4 Framing is done on which layer
A. Datalink Layer
B. Physical Layer
C. Transport Layer
D. Application Layer

Ques. 5 Segments are made on which layer
A. Session Layer
B. Transport Layer
C. Application Layer
D. Network Layer

Ques. 6 Which layer deals with Flow control?
A. Session Layer
B. Network Layer
C. Transport Layer
D. Application Layer

Ques. 7 Which layer deals with TCP and UDP?
A. Transport Layer
B. Physical Layer
C. Network Layer
D. None of above

Ques. 8 Which of the following performs modulation and demodulation?
A. Modem
B. Fiber optic
C. satellite
D. coaxial cable

Ques. 9 X.25 standard specifies
A. technique for start-stop data
B. technique for dial access
C. DTE/DCE interface
D. data bit rate

Ques. 10 IPV6 is in which format?
A. Hexadecimal format
B. Octal format
C. Alphanumeric format
D. Numeric format




ANSWERS:
1. A
2. B
3. D
4. A
5. B
6. C
7. A
8. A
9. C
10. A

00:40 - By Unknown 0

BANKING AWARENESS: Credit Cards

Dear Reader,
In our previous post, we provided to you the brief about ATM. Today, we are presenting to you the brief about Credit Cards.


CREDIT CARDS: A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.

1. Alternative to cash - Credit card is a better alternative to cash. It removes the worry of carrying various currency denominations to pay at the trade counters. It is quite easy and way fast to use a credit card rather than waiting for completion of cash transactions. As an alternative, credit card helps a cardholder to travel anywhere in the world without a need to carry an ample amount of cash. It also reduces the possible risk of money theft and gives its user a complete peace of mind.

2. Credit limit - The credit cardholder enjoys the facility of a credit limit set on his card. This limit of credit is determined by the credit card issuing entity (bank or NBFC) only after analyzing the credit worthiness of the cardholder.
The credit limit is of two types, viz.,
a. Normal credit limit is usual credit given by the bank or NBFC at the time of issuing a credit card.
b. Revolving credit limit varies with the financial exposure of the credit cardholder.

3. Aids payment in domestic and foreign currency - Credit card aids its cardholder to make payments in any currency of choice. In other words, it gives its holder a unique facility to make payments either in domestic (native) currency or if necessary, also in foreign (non-native) currency, that too as and when required.
Credit card reduces the cumbersome process of currency conversion. That is, it removes the financial complexities often encountered in converting a domestic currency into a foreign currency. It is because of this feature, a credit cardholder can possibly make payments to merchants present in any corner of the world.

4. Record keeping of all transactions - Credit card issuing entities like banks or NBFCs keeps a complete record of all transactions made by their credit cardholders. Such a record helps these entities to raise appropriate billing amounts payable by their cardholders, either on a monthly or some periodic basis.

5. Regular charges - Regular charges are basic routine charges charged by the credit card issuing entity on the usage of credit card by its cardholder. These charges are nominal in nature.
The regular charges are primarily classified into two types, viz.
Annual charges are collected on per annum or yearly basis.
Additional charges are collected for other supplementary services provided by the credit card issuing entity. Such services include, add-on-card (an additional credit card), issue of a new credit card, etc.

6. Grace period - The grace period is referred to those minimum numbers of additional days within which a credit cardholder has to pay his credit card bill without any incurring interest or financial charges.

7. Higher fees on cash withdrawals - Credit-card issuer makes charges on cash withdrawals made through credit card at the ATM outlets and other desks. Generally, cash withdrawal fees are quite higher than fees charged by the bank or NBFC for the other regular credit transactions. On cash withdrawn done through a credit card, interest is charged from the same day. That is, interest is charged since the day on which cash is withdrawn. Usually, no grace period is provided for cash transactions.

8. Additional charges for delay in payment - The credit card payment is supposed to be made within a due date as mentioned on the bill of a credit card. If payment is not paid on time, then a credit-card issuer charges some additional costs, which are resulted due to delay in payment. These charges are charged to compensate (recover) the interest cost, administration cost and any other related costs bared by the credit card issuing entity.

9. Service tax - Service tax is included in the total amount charged to the credit cardholder. This mandatory service tax imposed by the government also increases the final end cost bared by a credit cardholder. Many credit card providers (issuing entities) have policies of reversing the service tax charged on the purchase of gas, fuel and other similar goods.

10. Bonus points - The competition among the credit card providers is unbending (adamant). Offering various incentives is usually a trendy way to improve the sale of the products in the ordinary course of business.

11. Gifts and other offers - At a later stage, accumulated bonus points are redeemed either by converting them into gifts, cash back offers, or any other similar compelling offers.

ADVANTAGES: 

1. Purchase Power and Ease of Purchase - Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for example most airlines, hotels, and car rental agencies), putting purchases on a credit card can make buying things easier.

2. Protection of Purchases - Credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen. Both your credit card statement (and the credit card company) can vouch for the fact that you have made a purchase if the original receipt is lost or stolen. In addition, some credit card companies offer insurance on large purchases.

3. Building a Credit Line - Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs. Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit history.

4. Emergencies - Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget, sometimes emergencies may lead to a large purchase.

5. Credit Card Benefits - In addition to the benefits listed above, some credit cards offer additional benefits, such as discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances (like travel or life insurance.) While most of these benefits are meant to encourage you to charge more money on your credit card, the benefits are real and can be helpful as long as you remember your spending limits.

DISADVANTAGES

1. Blowing Your Budget - The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have. Most credit cards do not require you to pay off your balance each month, so even if you only have Rs.100, you may be able to spend up to Rs.500 or Rs.1,000 on your credit card. While this may seem like 'free money' at the time, you will have to pay it off -- and the longer you wait, the more money you will owe since credit card companies charge you interest each month on the money you have borrowed.

2. High Interest Rates and Increased Debt - Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of each month. This is how they make their money and this is how most people get into debt (and even bankruptcy.)

3. Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt, over the phone, or from a Web site) and use your card.

CONCLUSION:
Credit cards can make life easier and be a great tool, but if they aren't used wisely they can become a huge financial burden. If you do decide to use credit cards, remember these simple rules:
1. Keep track of all your purchases.
2. Don't spend outside your budget.
3. Pay off your balance on all of your credit cards at the end of each month.
4. Don't loan your credit or give out your credit card information to anyone but reliable companies.
5. Physical protection of the credit card as well as in the isolation (confidentiality) of the credit card number, card value number (CVV), personal identification number (PIN) and other sensitive credentials of the credit cardholder.

05:24 - By Unknown 0

Banking Awareness: CASA

In continuation to our Banking Awareness series, today we are providing you a brief about CASA.

Casa Ratio: Casa is basically the current and savings account deposits. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. 

If the CASA ratio is higher than it means that a higher portion of the deposits have come from current and savings deposit.

This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low.

Current and Saving Accounts are demand deposits and therefore pay lower interest rates compared to term deposits where the rates are higher.

In India, interest rates paid on current and savings account deposits is administered by banking regulator - the Reserve Bank of India.

Why are banks keen on gained a higher share of CASA?

Interest rate paid on Casa is much lower compared to other deposits like term deposits or recurring deposits. While banks do not pay any interest on current account, interest paid on savings account deposit is 4%.

Banks therefore make maximum effort to increase the share of Casa on their books to reduce their overall cost of deposits. HDFC Bank has the highest share of Casa to total deposits at 52%, followed by the State Bank of India at 48% and ICICI Bank at 45%.

What does Casa mean for customers?

Recently interest paid on savings account deposits is 4%. Banks pay interest on savings deposits on a daily basis rather than paying on the minimum balance maintained by them in six months.

As a result, savings account customers earn better returns compared to what they earned a year ago.

Further, interest earned on savings account deposits does not attract TDS (tax deduction at source). Interest income above 10,000 a year attracts TDS of 10% in case of term deposits. However, there is no major benefit for current account deposits, which is mainly maintained by corporates and traders.

What are the disadvantages of high CASA?

These deposits can move out of banks' books anytime, leading to asset-liability mismatches. While in case of term deposits, banks are almost certain that the depositor may not withdraw money before the maturity of the deposit and may also renew the deposit on maturity.

Further, to finance long-term projects, banks need to have long-term liabilities on their books to avoid mismatches. Banks cannot rely on Casa deposits to fund long-term loans.

05:19 - By Unknown 0