Important Banking and Financial Awareness Key Points for Upcoming IBPS PO/Clerk/RRB Exams 2016 Set-4:
Dear Readers, Many of our website followers were requesting us to provide Banking/Financial Awareness Study Materials which was most important topics for upcoming IBPS PO/Clerk/RRB Exams 2016, and we have planned to provide Important Banking and Financial Awareness Key Points on daily basis, kindly make use of it.
1). A “Closed Economy” is an economy in which neither exports nor imports takes place an economy that does not interact with any other economy. For a closed Economy having no foreign trade GDP=GNP.
2). Minimum Reserve System is the type of Note Issue System followed in India.
3). The Custom Duty is imposed on the imported and exported goods in the country. It is one of the most important duties because it hampers illegal import and export of goods.
4). Index “RESIDEX” is associated with land prices. It is maintained by National Housing Bank (NHB).
5). Industrial Exit Policy means allowing business units to close down.
6). If the government chooses to spend money freshly printed by the RBI against government securities is called Deficit Financing.
7). Letter of Credit – It is a letter from a bank, guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
8). Asset Reconstruction Companies in India are related to NPA’s.
9). Consumer Price Index (CPI) is the main base for calculation of Dearness Allowance (DA) for the Government Employees.
10). Special Drawing Rights (SDR) is an international reserve asset created by the International Monetary Fund (IMF) in 1969.
11). A loan that is provided by a group of bank is called Syndicate Loan.
12). When there is inflation in some commodities and deflation in others it is a condition of Skeflation.
13). National Bank for Agriculture & Rural Development (NABARD) promoted the concept of Self Help Groups (SHG) for financing the poor.
14). The Main Aim of Devaluation is to Encourage Exports.
15). Working Capital- Working Capital is a financial metric which represents operating liquidity available to a business, Organization or other entity, including government entity. It measures both a company’s efficiency and its short term financial health. It is current assets minus current liabilities.
16). The Bank that undertakes to subscribe to Share and Debentures of a company in case of under subscription is Development Bank.
17). Certificate of Deposits can be issued for a minimum period of 3 months.
18). Deflation is a decline in prices, often caused by a reduction in the supply of money or credit. The cause of Deflation is Lack of money supply as compared to supply of goods and services.
19). RBI increases the minimum Cash Reserve Ratio (CRR) of Commercial banks when the economy is experiencing inflation and when the central Bank aims credit contraction.
20). Ratio of Capital to Risk – Weight Assets represents Capital Adequacy Ratio (CAR) for Commercial Banks.