Banking Buzzwords Expected Questions for 14 and 15/Dec/2013 IBPS Clerk III exam

1. What is a Government Security?

Ans: A Government security is a tradable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).

2. Treasury Bills (T-bills)?

Ans: Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest.

3. What are the Open Market Operations (OMOs)?

Ans: OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

For Ex: When the RBI feels there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

4. What are the various types of financial markets?

 The financial markets can broadly be divided into money and capital market.

A. Money Market: The money market provides investment avenues of short term tenor. Money market transactions are generally used for funding the transactions in other markets including Government securities market and meeting short term liquidity mismatches.

By definition, money market is for a maximum tenor of up to one year. Within the one year, depending upon the tenors, money market is classified into:

i. Overnight market or Call money - The tenor of transactions is one working day.

ii. Notice money market – The tenor of the transactions is from 2 days to 14 days.

Iii. Term money market – The tenor of the transactions is from 15 days to one year.

B. Capital Market: Capital market is a market for long-term debt and equity shares.

In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges.

5. Commercial Paper (CP)?

Ans: Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.

Corporate, primary dealers (PDs) and the all-India financial institutions (FIs) that have been permitted to raise short-term resources under the umbrella limit fixed by the Reserve Bank of India are eligible to issue CP.

Period: CP can be issued for maturities between a minimum of 7 days and a maximum up to one year from the date of issue.

6. Certificate of Deposit (CD)

Ans: Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialized form or as a Usance Promissory Note, for funds deposited at a bank or other eligible financial institution for a specified time period.

Period: Banks can issue CDs for maturities from 7 days to one a year whereas eligible FIs can issue for maturities 1 year to 3 years.

7. What is EMV based card payments?

Ans: EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions.

It is a joint effort initially conceived between Europay, MasterCard and Visa to ensure the security and global interoperability of chip-based payment cards

8. About BMB: Bhartiya Mahila Bank (BMB) is an Indian financial services banking company based in New Delhi, India.India's Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former Indian Prime Minister Indira Gandhi.

Headquarter – New Delhi. Bank will get an initial capital of Rs 1,000 crore.

Usha Ananthasubramanian – The First CEO/Chairperson of Bhartiya Mahila Bank

9. Financial inclusion: Financial inclusion means providing sound and affordable financial services to the "unbanked”, those who do not have access to the formal financial system.

Financial inclusion is more than an economic issue - it is a legal and regulatory reform process.

10. The last 6 characters represent what in IFSC code?

Ans – Bank branch code.

The IFSC code contains 11 alphanumeric code and it facilitates - uniquely identifies a bank-branch participating in the NEFT system

11. About KYC norms?

Ans: The full form of KYC is – Know Your Customer

KYC guidelines was introduced by – RBI for all banks in the year - 2002

The components of KYC – Identity proof , address proof , photographs

The objective of KYC guidelines is – to prevent banks from criminal money laundering activities

KYC day is celebrated on – First working day of august every year

12. About BASE RATE – The minimum interest rate of a bank below which it cannot lend to public

The BPLR (Benchmark prime lending rate)was introduced in the year - 2003

The BPLR was converted into base rate on – july 2010

RBI made mandatory for all banks to introduced w.e.f. – 1July 2010

The minimum base rate is fixed by – RBI

13. About EDC : The full form of EDC – Electric Data Capture

EDS is a computerized system designed for - collection of clinical data in electronic format

14. About Bharat Nirman?

Ans: Bharat Nirman is Rural infrastructure plan which was implemented by the Government of India in order to provide some basic amenities to the rural India. launched in 2005.

Bharat Nirman have been sub-divided into six sections which includes;

Waters

Roads

Housing

Telephone

Electricity

Irrigation

15. What is the maximum deposit amount insured by DICGC?

Ans: Rs. 1 lakh  per depositor across all banks

16. The price at which the government purchases crops from the farmers is called ________.

Ans–MSP

17. Expand ASHA. – Accredited Social Health Activities

18. RBI set up the committee to look into financial inclusion under the chairmanship of ?

Ans- Dr. C. Rangarajan

19. The Good Road' is related to which of the following state of India?

Ans: Gujarat

20. Cheque Truncation System has legal sanction under which of the act?

Ans: Negotiable Instruments Act, 1881

21. According to this survey, Which of the state is the most financially developed?

Ans: Himachal Pradesh

22. The banks with a view to achieving greater financial inclusion to make which account?

Ans: "no-frills" banking account.

23. Cobrapost is founded by whom?

Ans; Aniruddha Bahal

24.Who is the co-founder of Tehelka?

Ans: Tarun Tejpal

25. Against which team Sachin Tendulkar played his last test?

Ans: Team West Indies, played in Mumbai (Wankhade Stadium) India.

26. How many tests Sachin Tendulkar has played in his career?

Ans: 200

27. How many years did Sachin Tendulkar gave to his cricket career?

Ans: 24

28. Sachin Tendulkar represented which team in IPL?

Ans: Mumbai Indians

Note: Indian Cricket legend Sachin Tendulkar appointed as UNICEF's first brand ambassador for South Asia

29. Banccasurance is also known as ___?

Ans: Bank Insurance Model(BIM)

30.What is Banccasurance?

Ans: An arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base

31.Banccasurance is a partnership between whom?

Ans: The bank and the insurance company.

32. In which Banccasurance started in India?

Ans: year 2000.

33.Who is the new chief of Pakistan army?

Ans: Raheel Sharif

34.Which cyclone hit Andhra Pradesh?

Ans: Helen

35. Chairman of MCX’s board (Multi Commodity Exchange of India)?

Ans: Satyananda Mishra former (Chief Information Commissioner).

Note: Multi Commodity Exchange of India Ltd (MCX)  is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai.

36. Which personality selected for Indira Gandhi Prize for Peace, Disarmament and Development for the year 2013?

Ans: Dr. Angela Merkel, German Chancellor

Note: for 2012: President of Liberia Ellen Johnson Sirleaf

37. IMPS is a term related to Banking system. In IMPS , letter M denotes ____?

Ans: Mobile

Immediate Payment Service (IMPS) is an instant, interbank (similar to NEFT) electronic fund transfer service that can be initiated only through mobile phones and service introduced by National Payments Corporation of India (NPCI).

Note: About MMID? Mobile Money Identifier (MMID) is a random seven digit number issued by banks to their customers.

If you wish to send money using IMPS, you should have the mobile number and MMID of the beneficiary (person whom you wish to send money to).

If you wish to receive funds using IMPS, you should generate  an MMID for your account and share this with the remitter (person whom you wish to receive money from). You can generate only one MMID per account

38.Recently Megan Young was crowned Miss World 2013. The Miss World grand final was held in ___?

Ans: Bali

39. Which scheme is launched by the Govt. of India allows lakhs of poor people to open a Bank account?

Ans: Swabhiman

40. Which of the following will host “NATO” 2014 nearly after 20 years of hosting summit?

Ans: Britain