Tuesday, November 8, 2016

Old Rs. 500 and 1000 are not legal tender any more



Old Rs. 500 and 1000 are not legal tender any more

NOTE - Only Old High Denomination Bank Notes (Rs. 1000 and Rs. 500) are banned. New series of Rs. 2000 and Rs. 500 will be issued shortly



PM Shri Narendra Modi, today evening (Nov 8, 2016) addressed the nation and announced that old higher denominations of Rs. 500 and Rs. 1000 will not be legal tender from this midnight .


Some important points to be noted -

  • Old High Denomination Bank Notes of Rs. 500 and 1000 are being withdrawn from midnight, and will not be legal tender any more.
  • New series of Rs. 2000 and Rs. 500 denominations will be launched soon.


Deposit / Exchange old notes -

  • Deposit any amount of old notes of Rs. 500 and Rs. 1000 in bank or post office accounts from Nov 10 (Thursday) to Dec 30 (Friday), i.e., 50 days to deposit old notes and credit your account. However, in case of non-KYC compliant account, a maximum of Rs. 50,000 can be deposited.
    Those unable to deposit by Dec 30 for some reason, can change them till March 31, 2017, by furnishing Officially Valid Documents (OVD) (ID proof) in RBI specified offices only.
  • Exchange old notes of Rs. 500 or Rs. 1000 at any bank, head post office or sub post office, by showing your ID proof (OVD), maximum of Rs. 4,000 till Nov 24, 2016.



Restrictions imposed -
  • On Nov 9 (Wednesday) and in some places on Nov 10 (Thursday), ATMs will not work. In the first few days till Nov 18, there will be a limit of Rs. 2,000 per day per card, which will be raised to Rs. 4,000 from Nov 19.
  • Banks and government treasuries will be closed for public on November 9 (Wednesday)
  • There will be a maximum cash withdrawal limit, which is Rs. 10,000 / day and Rs. 20,000 / week for the first fortnight (till Nov 24, 2016). This limit may be increased in the coming days.



No restrictions on -

  • No restriction on non-cash payments, like payments by Cheques, Demand Drafts (DD), Debit / Credit Cards, Electronic transfer, Internet / Mobile Banking, etc.



Minimize inconvenience till Nov 11 (Friday) midnight -

  • Government hospitals and pharmacies at such hospitals will continue to accept old Rs. 500 and Rs. 1000 notes for payment till Nov 11 (Friday) midnight.
  • Ticket counters of railway, government bus and airline will accept the same for ticket booking till Nov 11 midnight.
  • The followings will also accept old Rs. 500 and Rs. 1000 notes till Nov 11 midnight -
    • Petrol, diesel and gas stations, authorized by public sector oil companies
    • Consumer co-operative stores, authorized by state or central government
    • Milk booths, authorized by state governments
    • Crematoriums and cemeteries / burial grounds





* There is no official confirmation by RBI on RFID tags for tracking currency notes. These might be rumors. 



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Sunday, July 3, 2016

Bankoncepts Study Plan 2016-17




Bankoncepts Study Plan 2016-17


Dear banking aspirants, we've worked out a 10 week Study Plan on Banking Topics. Hope it will help you to study 'banking awareness' in a more systematic way.

You can read the topics from Banking Topics List, and solve the Question Sets given in the Study Plan.



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Monday, February 29, 2016

Union Budget 2016-17



Highlights of Union Budget 2016-17


A.  TAX

Cess

  • Infrastructure and Agriculture Cess to be levied
  • Pollution Cess of 1 % on small petrol, LPG and CNG cars; 2.5 % on diesel cars of certain specifications; 4 % on higher-end models
  • Krishi Kalyan Cess to be levied on all services - 0.5 %

Service Charge
  • Service Charge on purchase of Luxury cars (over Rs. 10 lakh) - 1 %
  • Service Charge on purchase of goods and services (over Rs. 2 lakh) in cash - 1 %
High-end Taxes
  • High capacity tax for SUV cars - 4 %
  • Companies with revenue less than Rs. 5 crore to be taxed at - 29 % + Surcharge
  • Dividend in excess of Rs. 10 lakh per annum to be taxed at additional - 10 %
Excise Duty
  • Excise Duty on tobacco products (except beedis) - raised from 10 % to 15 %
  • Excise Duty on articles of jewellery (excluding silver) - 1 %
Tax Compliance Window
  • Limited tax compliance window from June 1 - Sep 30 for declaring undisclosed income at - 45 % including surcharge and penalties


B.  PERSONAL FINANCE

Income Tax
  • No change in existing Income Tax Slabs
  • 15 % surcharge (raised from 12 %) on Income above Rs. 1 crore
EPF - Employees provident fund
  • Rs. 1000 crore allocated for new EPF (Employees' Provident Fund) scheme
  • Government will pay EPF contribution of 8.33 % for all new employees for first 3 years
Exemptions and benefits
  • Deduction limit under Section 87A of I-T Act raised from Rs. 2,000 to Rs. 5,000 per annum (applicable to those with total income of less than Rs. 5 lakh)
  • Relief for taxpayers who do not own a house and don't get house rent allowance (HRA) from employers. Under Section 80GG, deduction for rent paid will be raised from Rs. 24,000 to Rs. 60,000 per annum
  • Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh (provided cost of house is not above Rs. 50 lakh)
  • Service Tax exempted for construction of houses less than 60 square meter


C.  SOCIAL

Allocations
  • MGNREGA for 2016-17 allocated - Rs. 38,500 crore
  • Swacch Bharat Abhiyan alocated - Rs. 9,500 crore
  • Hub to support SC / ST entrepreneurs 
LPG, cooking gas
  • Government is launching a new initiative to provide cooking gas to BPL families with state support
  • LPG connections to be provided under the name of women members of family - Rs. 2,000 crore allocated for 5 years for BPL families
Rural and Urban
  • 2.87 lakh crore grants to Gram panchayats and municipalities - a quantum jump of 228 %
  • 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Animal Welfare
  • 4 schemes for animal welfare


D.  HEALTH

Dialysis
  • 2.2 lakh renal patients added every year in India. Basis dialysis equipment gets some relief
  • National Dialysis Service Program with funds through PPP mode to provide dialysis at all district hospitals
Health cover
  • A new health protection scheme for health cover upto 1 lakh per family
  • Senior Citizens will get additional healthcare cover of Rs. 30,000 under the new scheme
Generic drug store
  • PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened


E.  EDUCATION
  • Scheme to get Rs. 500 crore for promoting entrepreneurship among SC / ST
  • 10 public and 10 private educational institutions to be made world-class
  • Digital repository for all school leaving certificates and diplomas.
  • Rs. 1,000 crore for higher education financing
  • Rs. 1,700 crore for 1,500 multi-skill development centers
  • Digital literacy scheme to be launched to cover 6 crore additional rural households
  • Entrepreneurship training to be provided across schools, colleges and massive online courses
  • Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojana
  • National Skill Development Mission (NSDM) has imparted training to 76 lakh youth,


F.  ENERGY
  • Rs. 3,000 crore earmarked for nuclear power generation
  • Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
  • Govt to provide incentive for deep-water gas exploration
  • Deep-water gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels


G.  INVESTMENTS AND INFRASTRUCTURE
  • Rs. 27,000 crore to be spent on roadways
  • 65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms / day
  • Shops to be given option to remain open all 7 days in a week across markets
  • Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY - Rs. 97,000 crore
  • India's highest-ever production of motor vehicles was recorded in 2015
  • Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
  • New greenfield ports to be developed on east and west coasts
  • Revival of under-served airports. Center to partner with states to revive small airports for regional connectivity
  • 100 % FDI in marketing of food products produced and marketed in India
  • Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
  • Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation
  • MAT will be applicable for startups that qualify for 100 % tax exemption
  • Direct Tax proposals result in revenue loss of Rs. 1,060 crore; Indirect Tax proposals result in gain of Rs. 20,670 crore


H.  AGRICULTURE
  • Total allocation for agriculture and farmer welfare at Rs. 35,984 crore
  • 28.5 lakh hectares of land will be brought under irrigation
  • 5 lakh acres to be brought under organic farming over a 3 year period
  • Rs. 60,000 crore for recharging of ground water as there is urgent need to focus on drought hit areas cluster development for water conservation
  • Dedicated Irrigation Fund in NABARD of Rs. 20,000 crore
  • Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojana


I.  BANKING
  • Banks get  - Rs. 25,000 crore towards recapitalization of Public Sector Banks. Banking Board Bureau will be operationalized. 
  • Target of disbursement under MUDRA increased to 1.8 lakh crore
  • Process of transfer of government stake in IDBI Bank below - 50 % started
  • General Insurance companies will be listed in the stock exchange
  • Govt to increase ATMs, micro-ATMs in Post Offices in next 3 years




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Sunday, December 6, 2015

Calculation of Interest and Annuities




JAIIB - Accounting & Finance
Module A : Business Mathematics and Finance


Calculation of Interest and Annuities



1.  Calculation of Simple Interest (SI) and Compound Interest (CI)

a.  Simple Interest (SI) / Flat rate interest is calculated only on the principal amount (initial amount).
Formula for calculating SI is :
SI = Principal (P) x Rate (R) x Time (T)  [N.B - here Rate is expressed in fraction, e.g., 0.05, instead of 5 %]

E.g., Principal amount of Rs. 5,000 with 10 % annual simple interest rate, will earn total interest in 3 years = 5,000 x 0.1 x 3 = Rs. 1,500;
whereas, it will earn total interest in 3 months = 5,000 x 0.1 x 3/12 = Rs. 125


b.  Compound Interest (CI) / Cumulative Interest is calculated both on the principal amount and prior interest earned.
Formula for calculating CI is:
CI = Amount (A) - Principal (P),
where, A = P(1+R/n)^nT  [N.B - here Rate is expressed in fraction, e.g., 0.05, instead of 5 %]

Note - n is the number of compounding per year, e.g., for yearly compounding n=12/12=1, for half-yearly compounding n=12/6=2, for quarterly compounding n=12/3=4, for monthly compounding n=12/1=12, etc.

E.g., Principal amount of Rs. 5,000 with 10 % annual compound interest rate, will earn total interest in 3 years = [ 5,000 x (1 + 0.1) ^ 3 ] - 5,000 = Rs. 1,655

But, if it is, say, quarterly compounding, then CI for 3 years is = [ 5,000 x (1 + 0.1/4) ^ (4 x 3) ] - 5,000 = Rs. Rs. 6724.44 - 5000 = Rs. 1724.44




2.  Calculation of Equated Monthly Installments (EMI)


Equated Monthly Installments (EMI) is the amount a borrower pays every month for his loan. It is a combination of interest and principal payment, where the total monthly amount is such calculated, that it remains constant (i.e., equated) throughout the repayment period.

Formula : EMI = [PR(1+R)^n] / [(1+R)^n - 1], (to remember EMI=PRX/(X-1), where X=(1+R)^n)
Here, P=Principal amount,
R=interest (compound) rate per month (NOTE: if annual intt rate is 10 %, then R=10/(12x100), i.e., conversion to monthly is necessary)
N=no. of monthly installments
X=compounding factor=(1+R)^n

For example, suppose a loan of Rs. 5 lakh is to be repaid over 30 years in EMI, with 10 % annual interest. Here, the monthly EMI for this loan will be calculated as follows -
i.  First calculate R (convert to monthly intt. rate) = 10/(12x100) % = 0.00833 (approx)
ii.  Then calculate no. of monthly installments, n = 30 years x 12 = 360
iii.  Calculate compounding factor X = (1+R)^n = (1+0.00833)^360 = 19.8138 (approx)
iv.  EMI = PRX / (X-1) = (500000 x 0.00833 x 19.8138) / 18.8138 = 4386.38 = 4387 (approx)

EMI for this loan will be approx Rs. 4,387.




3.  Fixed and Floating Interest Rates

a.  Fixed Interest rate on a loan, means that the interest rate will be fixed / constant, either for the entire term of the loan, or for part of the total term of the loan.

b.  Floating / Variable Interest rate on a loan, means that the interest rate can be changed (increase or decrease) depending on the market conditions.


Comparison -
  • If market condition is favorable, then the borrower enjoys reduced rate of interest for Floating interest loans, whereas he cannot enjoy the benefit if he avails Fixed interest loans.
    Similarly, if market condition deteriorates, he is not affected, if he avails Fixed interest loans, whereas he has to pay more for floating interest loans.
  • Fixed interest loans bring a sense of certainty and security. It is good for those borrowers, who are good at budgeting.
  • Often fixed interest rates are higher than the floating interest loans.




4.  Calculation of Annuities

Before starting with Annuities, first understand the time value of money.
Present Value (PV) of money is the value at the current point of time. Whereas, a given sum of money "worth" more at a specified time in the future, assuming a certain interest rate. This is known as Future Value (FV) of money.

Assuming that the interest rate and number of periods remain constant, PV and FV vary jointly. For example, if PV increases, FV will increase too, and vice versa. There is a relationship between these two (with the above assumption), PV = FV x DF

here DF is known as Discounting Factor. Note that to get the present value of a certain sum of money, we have to discount (e.g., filter out the interests gained) the future value of that sum of money. This process is known as Discounting.

Formula for DF is DF = 1 / (1+R)^n
where R=rate of interest, and n=no. of period
[ Note, that we have taken Compounding Factor X=(1+R)^n while calculating EMI. Discounting Factor (DF) is reciprocal of the compounding factor]

Therefore, now we have the relations,
PV = FV x DF FV = PV / DF, where DF = 1 / (1+R)^n
or, PV = FV / X; FV = PV x X, where X = (1+R)^n

(take any one of the above formula for remembering)


Now, that you have clear concept of Present Value (PV) and Future Value (FV) of money, we can start with Annuity.

An Annuity is a series of equal/fixed payments/receipts at a regular interval, over a fixed period. For example, recurring deposit of Rs. 1000 every month, or LIC payment of Rs. 1000 every year for 10 years, etc.

Note that, payments can be made weekly, monthly, quarterly, yearly, or at any other interval of time.



Types of Annuity - There are 2 types in terms of valuation of annuity:
(NOTE - Basic classification of Annuity is - Ordinary Annuity & Annuity Due)

a.  Annuity Certain / Guaranteed Annuity - If the number of payment is known in advance, then it is known as Annuity Certain.

Annuity Certain is of 3 types -

i.  Ordinary Annuity / Annuity Immediate - If the payments are made at the end of the time period. In this case, before the payment is made, interest is accumulated or earned.

Periods:    0___1___2___ ... ___n  (Payments in bold, i.e., 1, 2, ... n)

Formula for Ordinary Annuity,
FV of Ordinary Annuity = C(X-1)/R, where X=(1+R)^n
Here C=cash flow per period, R=interest rate and n=number of payments

To get PV of Ordinary Annuity, use the formula already discussed, PV=FV/X (i.e., divide FV by compounding factor), or PV=FVxDF (i.e., multiply FV by discounting factor)



ii.  Annuity Due - If the payments are made at the beginning of each period. In this case, each annuity payment is allowed to compound for one extra period (note - paying before time!)


Periods:    0___1___2___ ... ___n  (Payments in bold, i.e., 0, 1, 2, ... n)

Note that, since each payment in this series is made 1 period earlier, we have to discount the formula for 1 period. We get the following formula for Annuity Due,

FV of Annuity Due = FV of Ordinary Annuity x (1+R) = [C(X-1)/R] x (1+R)
Similarly, PV of Annuity Due = FV of Annuity Due / X = FV of Annuity Due x DF


Note -

  • FV will be greater than PV (assuming interest is earned). Therefore, to calculate PV from FV, we have to divide FV by compounding factor, (i.e., multiply FV by discounting factor). It will make PV lesser than the FV. And reverse while calculating FV from PV.
  • Try remembering the formula, FV of Ordinary Annuity = C(X-1)/R, and then use the following formula to get the others -
    • PV of Ordinary Annuity = FV of Ordinary Annuity / X
    • FV of Annuity Due = FV of Ordinary Annuity x (1+R) (multiply by 1+R, since payment made 1 period earlier)
    • PV of Annuity Due = FV of Annuity Due / X



iii.  Perpetuity - If the payments continue forever


b.  Life Annuities - If the payment is paid till the annuitant is alive. For example, life insurance, etc.




5.  Amortization of a Debt
Amortization is the process of decreasing an amount over a period. Amortization of a debt/loan is the process by which loan principal decreases over the life of a loan, typically an amortizing loan.

With each payment is made, a portion of the payment is applied towards reducing the principal, and another portion towards paying the interest on the loan.


6.  Sinking Funds
Sinking Fund is a fund into which a company sets aside money over a period of time, in order to fund a future capital expense, or repayment of a long-term debt.

Suppose a company wants a fixed amount of Rs. 50 crore in 5 years. It can deposit an amount (say, C) every year (i.e., annuity) with a bank, which gives interest rate of 8 % annually. This becomes Rs. 50 crore after 5 years, and can be used for repaying a debt, or any other purpose. This type of fund is known as Sinking Fund.

Note we can calculate C, as interest rate (R), FV(=Rs. 5 crore), and number of period are known.





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Saturday, June 20, 2015

Day 60 - Questions


Day 60 - New Social Security Schemes

( New Social Security Schemes, Beti Bachao Beti Padhao Initiative )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is a newly launched pension scheme of government of India?
a.  PMJJBY
b.  PMJDY
c.  PMSBY
d.  APY

2.  What is the premium for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
a.  Rs. 300 / annum
b.  Rs. 330 / annum
c.  Rs. 350 / annum
d.  None of the above

3.  What is the premium for Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
a.  Rs. 100 / annum
b.  Rs. 150 / annum
c.  Rs. 10 / annum
d.  Rs. 12 / annum

4.  Atal Pension Yojana (APY) specially focuses on -
a.  organized sector
b.  IT-sector
c.  unorganized sector
d.  banking sector

5.  Which of the following provides accidental death-cum-disability cover of Rs. 2 lakh?
a.  PMJJBY
b.  PMJDY
c.  PMSBY
d.  APY

6.  According to the 2011 census, which of the following is the correct Child Sex Ratio (CSR) in India?
a.  945 girls per 1000 boys
b.  927 girls per 1000 boys
c.  918 girls per 1000 boys
d.  None of the above

7.  Which of the following scheme of government is/are specially focused on girl child in India?
a.  Sukanya Samridhi Yojana
b.  Saksham scheme
c.  Swabhiman scheme
d.  Swavalamban scheme

8.  What is the maximum age of girl child allowed for opening Sukanya Samriddhi Account?
a.  8 years
b.  10 years
c.  12 years
d.  18 years

9.  Beti Bachao Beti Padhao is an initiative of -
a.  Ministry of Women and Child Development
b.  Ministry of Health and Family Welfare
c.  Ministry of Human Resource Development
d.  All of the above

10.  Beti Bachao Beti Padhao initiative was started with initial corpus of -
a.  Rs. 50 crore
b.  Rs. 100 crore
c.  Rs. 500 crore
d.  Rs. 1000 crore




With this post (Day 60) - Bankoncepts Study Plan 2015-16 is concluded. Hope you find this Banking Awareness plan helpful!


Happy learning!




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Friday, June 19, 2015

Day 59 - Questions


Day 59 - Pre-2005 and MG-series Banknotes

( Pre-2005 Banknotes, MG-series Banknotes )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is not a banknote series issued in India?
a.  Ashoka Pillar Banknotes issued from 1949
b.  Mahatma Gandhi (MG) Series-1996 Banknotes issued from 1996
c.  Mahatma Gandhi (MG) Series-2005 Banknotes issued from 2005
d.  Mahatma Gandhi (MG) Series-2012 Banknotes issued from 2012

2.  Which of the following series of banknotes bear the year of printing on the reverse side?
a.  Ashoka Pillar Series banknotes
b.  MG-series 1996 banknotes
c.  MG-series 2005 banknotes
d.  All of the above

3.  Which of the following is true regarding recent banknote circulation policy of RBI in India?
a.  Withdrawal of Pre-2005 banknotes
b.  Withdrawal of Pre-2012 banknotes
c.  Withdrawal of Pre-2010 banknotes
d.  Withdrawal of Pre-1996 banknotes





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Thursday, June 18, 2015

Day 58 - Questions


Day 58 - Financial Ministry and Financial Market Entities

( Finance Ministry, Financial Market Entities )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is not a department of Finance Ministry?
a.  Department of Economic Affairs
b.  Department of Public Enterprises
c.  Department of Expenditure
d.  Department of Disinvestment

2.  Which of the following is not a function of Department of Economic Affairs (DEA)?
a.  Preparation of General Budget (excluding Railway Budget)
b.  Formulation of Macroeconomic policies
c.  Indian currency production
d.  Governing Direct and Indirect Taxes

3.  Who is the Economic Affairs Secretary of India (as of June 18, 2015)?
a.  Arvind Mayaram
b.  Hasmukh Adhia
c.  Rajiv Mehrishi
d.  Raghuram Rajan

4.  Which of the following department governs all banks, insurance, pensions, etc. provided by government agencies or private corporations?
a.  Department of Economic Affairs
b.  Department of Financial Services
c.  Department of Revenue
d.  None of the above

5.  Who is the Financial Services Secretary of India (as of June 18, 2015)?
a.  Arvind Mayaram
b.  Hasmukh Adhia
c.  Rajiv Mehrishi
d.  Aradhana Johri

6.  Who is the first Finance Minister of independent India?
a.  Liaquat Ali Khan
b.  R.K.Shanmukham Chetty
c.  Morarji Desai
d.  C.D.Deshmukh

7.  Who is the Finance Secretary of India (as of June 18, 2015)?
a.  Arvind Mayaram
b.  Hasmukh Adhia
c.  Rajiv Mehrishi
d.  Raghuram Rajan

8.  What is the main function of Primary Dealers (PD)?
a.  Dealing with government securities, both in Primary and Secondary Market
b.  Dealing with public funds
c.  Dealing with disinvestment
d.  None of the above

9.  Which of the following is true regarding Brokers?
a.  Brokers are needed to be approved by Capital market regulator
b.  Brokers act as an intermediary between buyers and sellers of securities of Capital Market
c.  Brokers help build-up an order book, carry out price discovery and are responsible for broker's contracts being honored
d.  All of the above

10.  Depository Participants maintain demat accounts of individual customers. Which of the following maintains demat accounts of Depository Participants?
a.  Government
b.  RBI
c.  Depositories
d.  Individual Banks

11.  Which of the following is correct difference between Brokers and Depository Participants?
a.  Brokers are members of stock exchanges; DPs are members of Depositories
b.  Brokers link buyers and sellers of securities through Stock Exchanges; DPs keep securities in safe electronic (demat) form, and act as the custodian of securities
c.  Brokers open trading account; DPs open demat account
d.  All of the above




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Wednesday, June 17, 2015

Day 57 - Questions


Day 57 - Interest Rate Swap, Disinvestment

( Interest Rate Swap, Disinvestment )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Interest Rate Swap is a financial instrument of -
a.  Money Market
b.  Capital Market
c.  Derivatives Market
d.  None of the above

2.  Which of the following is true regarding Interest Rate Swap (IRS)?
a.  Two parties exchange interest rate payments between them
b.  One party wants to receive payment in variable interest rate
c.  Other party wants to receive payment in fixed interest rate
d.  All of the above

3.  What is the purpose of Interest Rate Swap agreement?
a.  Hedging an investment
b.  Gaining tax benefit from government
c.  Change the interest rate of bank deposits
d.  All of the above

4.  Disinvestment can be though as -
a.  The conversion of money into securities / assets
b.  The conversion of securities / assets into money
c.  Both (a) and (b)
d.  None of the above

5.  Which of the following is true regarding disinvestment?
a.  Disinvestment is the action of an organization / government to sell its assets (shares / other securities / subsidiary) to raise money
b.  Disinvestment has the opposite effect of Investment
c.  Disinvestment occurs in Secondary Market
d.  All of the above




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IBPS RRB 2015-16 Notification




IBPS CWE RRB IV (2015-16) Notification


IBPS
has released the notification of RRB IV (2015-16).

Major change - Common Interview is introduced in RRB IV (up to previous year respective RRBs conducted their own Interview, and shortlisted final selected candidates accordingly)


Application Date - July 8 - 28, 2015
Exam Date - September 2015 (tentatively)


Download Official Notification - Click Me







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Tuesday, June 16, 2015

Day 56 - Questions


Day 56 - Purchasing Power Parity, Subsidy Leakage, JAM Trinity

( Purchasing Power Parity, Subsidy Leakage, JAM Trinity )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is true regarding Purchasing Power Parity?
a.  The exchange rate of a currency with another currency is in equilibrium when their domestic purchasing power are equivalent at that exchange rate
b.  The exchange rate of a currency with another currency is in equilibrium when their domestic purchasing power are different at that exchange rate
c.  Purchasing power parity has no effect in exchange rate
d.  None of these

2.  If the same product/service can be sold in two different countries with no restrictions on sale and transport costs are zero, the product/service's price should be the same in both countries. This theory is known as -
a.  Market Parity Theory
b.  The Law of One Price
c.  Purchasing Power Parity
d.  None of the above

3.  Subsidy leakage means -
a.  Government subsidy is reaching to the intended beneficiary
b.  Government subsidy is not reaching to the intended beneficiary
c.  Government subsidy is stopped by the government
d.  None of the above

4.  Which of the following could help in reducing the Subsidy Leakage problem?
a.  PAHAL Scheme for LPG
b.  Direct Benefit Transfer (DBT) schemes
c.  Jan-Dhan Yojana Accounts
d.  All of the above

5.  Which of the following is included in JAM Trinity?
a.  Jan Dhan Yojana
b.  Aadhar linked Direct Benefit Transfer (DBT)
c.  Mobile Numbers
d.  All of the above





Note - Do not refer any source while answering the questions. You can comment in the Comment Section below.



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