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    1. What is Balance of Trade?

    The value of a countrys exports minus the value of its imports. Unless specified as the

    balance of merchandise trade, it normally incorporates trade in services, including earnings

    (interest, dividends, etc.) on financial assets.

    2. What is Balanced Trade?

    When A balance of trade equal to zero. (exports-imports=0)3. What is Balance of merchandise trade?

    The value of a countrys merchandise exports minus the value of its merchandise imports.

    4. What is a favorable balance of trade?

    It is the difference between exports and imports. Debit items include imports, foreign aid,

    domestic spending abroad and domestic investments abroad. Credit items include exports,

    foreign spending in the domestic economy and foreign investments in the domestic

    economy. A country has a trade deficit if it imports more than it exports; the opposite

    scenario is a trade surplus.

    5. What is Balance of Payments?

    A list, or accounting, of all of a countrys international transactions for a given time period,usually one year. Payments into the country (receipts) are entered as positive numbers,

    called credits; payments out of the country (payments) are entered as negative numbers

    called debits. A single number summarizing all of a countrys international transactions: the

    balance of payments surplus.

    6. What is Balance of payments adjustment mechanism?

    Any process, especially any automatic one, by which a country with a payments imbalance

    moves toward balance of payments equilibrium

    7. What is Monopolistic Competition?

    A market structure in which there are many sellers each producing a differentiated product.

    Each can set its own price and quantity, but is too small for that to matter for prices andquantities of other producers in the industry.

    8. What is MFN?

    MFN stands for Most Favoured Nation. The principle, fundamental to the GATT, of treating

    imports from a country on the same basis as that given to the most favored other nation.

    That is, and with some exceptions, every country gets the lowest tariff that any country gets,

    and reductions in tariffs to one country are provided also to others.

    9. What is Gold Standard?

    A monetary system in which both the value of a unit of the currency and the quantity of it in

    circulation are specified in terms of gold. If two currencies are both on the gold standard,

    then the exchange rate between them is approximately determined by their two prices interms of gold.

    10. What is Balance on capital account?

    A countrys receipts minus payments for capital account transactions.

    11. What is Balance on current account ?

    A countrys receipts minus payments for current account transactions. Equals the balance

    of trade plus net inflows of transfer payments.

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    12. What is a Balanced budget ?

    A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A

    balanced budget change in policy or behavior is one in which a component of the

    government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.

    13. What is balanced growth of an Economy?

    Growth of an economy in which all aspects of it, especially factors of production, grow at thesame rate.

    14. What is a Bank rate

    The interest rate charged by a central bank to commercial banks for very short term loans.

    15. What is a Repo?

    Repo is Repurchase Agreement. An agreement to sell a security for a specified price and

    to buy it back later at another specified price. A repo is essentially a secured loan.

    16. What is Repo Rate?

    Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is

    the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help

    banks to get money at a cheaper rate. When the repo rate increases borrowing from RBIbecomes more expensive. On March 4, 2009 it was 5% in India (please check the latest

    figure by RBI)

    17. What is CRR Rate in India?

    Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If

    RBI decides to increase the percent of this, the available amount with the banks comes

    down. RBI is using this method (increase of CRR rate), to drain out the excessive money

    from the banks.

    18. What is a Reverse Repo Rate?

    Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from

    banks. Banks are always happy to lend money to RBI since their money are in safe handswith a good interest. An increase in Reverse repo rate can cause the banks to transfer more

    funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of

    the banking system. Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo

    Rate and Reverse Repo rate our banks adjust their lending or investment rates for common

    man. On March 4, 2009 Reverse Repo Rate is 3.5% (please check latest rate by RBI)

    19. What is SLR Rate?

    SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the

    form of cash, or gold or govt. approved securities (Bonds) before providing credit to its

    customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in

    order to control the expansion of bank credit.20. How is SLR determined?

    SLR is determined as the percentage of total demand and percentage of time liabilities.

    Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their

    anytime demand. .

    21. What is the Need of SLR?

    With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a commercial

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    bank. It is also helpful to control the expansion of Bank Credits. By changing the SLR rates,

    RBI can increase or decrease bank credit expansion. Also through SLR, RBI compels the

    commercial banks to invest in government securities like government bonds..

    22. What is the main use of SLR?

    SLR is used to control inflation and propel growth. Through SLR rate tuning the money

    supply in the system can be controlled efficiently.23. What is Inflation in India?

    Increase in the overall price level of an economy, usually as measured by the CPI /WPI or

    by the implicit price deflator. Inflation is as an increase in the price of bunch of Goods and

    services that projects the Indian economy. An increase in inflation figures occurs when

    there is an increase in the average level of prices in Goods and services. Inflation happens

    when there are less Goods and more buyers, this will result in increase in the price of

    Goods, since there is more demand and less supply of the goods..

    24. What is Deflation?

    A fall in the general level of prices. Unlikely unless the rate of inflation is already low, it may

    then be due either to a surge in productivity or, less favorably, to a recession. Deflation isthe continuous decrease in prices of goods and services. Deflation occurs when the inflation

    rate becomes negative (below zero) and stays there for a longer period.

    25. What is a Barter economy?

    An economic model of international trade in which goods are exchanged for goods without

    the existence of money. Most theoretical trade models take this form in order to abstract

    from macroeconomic and monetary considerations.

    26.What is Basel I?

    Also known at Basel Capital Accord, this was an agreement in 1988 by the Basel

    Committee of central bankers to measure the credit risk of commercial banks and set

    minimum standards for bank capital in order to reduce the likelihood of internationalrepercussions due to bank failures.

    27.What is Basel II?

    The Basel II Framework describes a more comprehensive measure and minimum standard

    for capital adequacy that national supervisory authorities are now working to implement

    through domestic rule-making and adoption procedures. It seeks to improve on the existing

    rules by aligning regulatory capital requirements more closely to the underlying risks that

    banks face. In addition, the Basel II Framework is intended to promote a more forward-

    looking approach to capital supervision, one that encourages banks to identify the risks they

    may face, today and in the future, and to develop or improve their ability to manage those

    risks. As a result, it is intended to be more flexible and better able to evolve with advancesin markets and risk management practices.

    The efforts of the Basel Committee on Banking Supervision to revise the standards

    governing the capital adequacy of internationally active banks achieved a critical milestone

    in the publication of an agreed text in June 2004.

    28.What is a Beggar thy neighbor policy?

    For a country to use a policy for its own benefit that harms other countries. Examples are

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    optimal tariffs and, in a recession, tariffs and/or devaluation to create employment.

    29. What is a Bill of Lading?

    This term is normally used in shipping industry. The receipt given by a transportation

    company to an exporter when the former accepts goods for transport. It includes the

    contract specifying what transport service will be provided and the limits of liability.

    30. What is the use of color boxes in WTO category of subsidies?Used with a color, a category of subsidies based on status in WTO: red=forbidden, amber

    or orange=go slow, green=permitted, blue=subsidies tied to production limits. Terminology

    seems only to be used in agriculture, where in fact there is no red box.

    31. What is a fiscal deficit?

    A deficit in the government budget of a country and represents the excess of expenditure

    over income. So this is the amount of borrowed funds required by the government to meet

    its expenditures completely.

    Indias fiscal deficit widened to Rs. 541.58 billion in April, 2009 as compared to Rs. 329.39

    billion rupees in April 2008.

    32. What is Black Money ?Black Money is the unaccounted money concealed from the tax authorities. The black

    money runs a parallel economy adversely affecting the distribution of wealth & income in

    the economy.

    The total amount of black money globally is estimated between $2.1 and 2.5 trillion. This is

    roughly about seven percent of the worlds GDP.

    33.What is a Black Market?

    A black market is an illegal market, in which something is bought and sold outside of official

    government-sanctioned channels. Black markets tend to arise when a government tries to

    fix a price without itself providing all of the necessary supply or demand. Black markets in

    foreign exchange almost always exist when there are exchange controls.34.What is a blue chip company? Why it is blue color only used in such companies?

    A blue chip is concerned with stocks & shares of company, which are well established and

    whose purchase is considered extremely safe. Due to stable earnings and no extensive

    liabilities these companies are called blue chip companies.

    The term blue chip comes from casinos, where blue chips stand for counters of the highest

    value. Most blue chip stocks pay regular dividends, even when business is faring worse

    than usual.

    35.What is a direct Tax?

    A direct tax is that which is paid directly by someone to taxing authority. Income tax and

    property tax are examples of direct tax. They are not shifted to somebody else.36.What is an Indirect Tax?

    This type of tax is not paid by someone directly to the authorities and it is actually passed

    on to the other in the form of increased cost. They are levied on goods and services

    produced or purchased. Excise tax, Sales tax, VAT are indirect taxes.

    37.What are LDCs or Least Developed Countries?

    Least Developed Countries (LDCs) are countries which as per United Nations show the

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    lowest indicators of socioeconomic development.

    They have lowest Human Development Index ratings of all countries in the world.

    A country which has three-year average Gross national Income per capita of less than US

    $750 is tagged as LDC. a LDC must have an income of $ 900 to escape this tag. Besides if

    thse countries show human resource weakness based on indicators of nutrition, health,

    education and adult literacy and also or economic vulnerability based on instability ofeconomy . Currently UN has tagged 49 countries in LDC. India is not an LDC.

    38.What are Middle Income Countries ?

    Middle-income countries (MICs) are the 86 countries that fall into the middle-income range

    set by the Banks World Development Indicators. They account for just under half of the

    worlds population; are home to one-third of people across the globe living on less than $2

    per day; and are found in all six of the Banks geographical regions. They cover a wide

    income range, with the highest income MIC having a per capita income 10 times that of the

    lowest.

    39.What is Policy of Laissez Faire?

    Laissez Faire is a French term and means no interference. It is a doctrine that states thatgovernment generally should not intervene in the marketplace.

    40.What is the difference between Monopoly and Monopsony ?

    In monopsony only one buyer faces many sellers. So this is called Buyers Monopoly. It is a

    rare situation in todays economy.

    In monopoly one seller faces many buyers. As the only purchaser of a good or service, the

    monopsonist may dictate terms to its suppliers in the same manner that a monopolist

    controls the market for its buyers.

    41.What is the main function of Competition Commission of India?

    CCI is an independent body which become operational w.e.f. May 20, 2009 and is

    responsible for investigating the mergers, market shares & conditions besides regulatingfirms. CCI will ultimately replace the Monopolies and Restrictive Trade Practices

    Commission (MRTPC) ofIndia.

    42.What is Lead Bank Scheme?

    Lead bank scheme was introduced around 40 years ago and recently it was in the news as

    a high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to

    review and revitalize this scheme. The scheme aims at facilitating credit delivery to the

    farfetched areas ofIndia. There are members of the committee from NABARD and SIDBI.

    Thus the scheme focuses upon financial inclusion.

    The Opinion of this committee is that full financial inclusion is possible only if it makes a

    facility of opening of no frill accounts backed by other specialized services.43.What are Nostro & Vostro Accounts ?

    A nostro account is maintained by an Indian Bank in the foreign countries for a facility of

    easy clearing of their transactions. For instance, if the bank pays a demand drawn on it by

    its correspondent bank, there is no delay because the foreign corresponded bank would

    already have credited the nostro account of the paying bank while issuing the demand draft.

    A vostro account is maintained by a foreign bank in India with their corresponding bank.

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    44.From which country India imports maximum?

    From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3

    years. This is 10.3 % of all the imports of India.

    45.What is Gold Standard?

    A system of setting currency values whereby the participating countries commit to fix the

    prices of their domestic currencies in terms of a specified amount of gold.46.What is a Free Float Exchange Rate system?

    An exchange rate system characterized by the absence of government intervention. Also

    known as a clean float.

    47.What are Special Drawing rights SDR?

    SDR are new form of international reserve assets, created by the International Monetary

    Funds in 1967. The value of SDR is based on a portfolio of widely used currencies and they

    are maintained as accounting entries and not as hard currency or physical assets like Gold.

    48.What are the requirements to open a New Branch in Rural Area?

    Since 2006, RBI has approved the opening of new branches only on the condition that at

    least half of such branches are opened in under-banked areas as notified by the regulator.The opening of branches by banks is governed by the provisions of Section 23 of the

    Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place

    of business inIndia or abroad or change otherwise than within the same city, town or village,

    the location of the existing place of business without the prior approval of the ReserveBank

    of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/ license from Rural

    Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.

    RRB should fulfill the following conditions to become eligible for opening of new branch/es.

    1. It should not have defaulted in maintenance of SLR and CRR during the last two years.

    2. The RRB should be making operational profits, its net worth should show improvement 3.

    Its net NPA ratio should not exceed 8 per cent.49.What is concept sustainable Development?

    Meeting the needs of the present without compromising the ability of future generations to

    meet their needs is called sustainable development. This concept is popular in present

    context of development.

    50.What is the meaning of Financial Inclusion?

    Today is is well recognized that large population of India is out of reach of the formal

    banking services. Financial inclusion is the concept which has been floated to bring the

    most of the rural population / area under the net of the financial and banking services.

    51. What is SATMO?

    SATMO is Satellite Money Order Service introduced by Postal Department Govt. of India onDecember 16, 1994. However this scheme could not make its headway due to functional

    complicacies.

    52. What is Vande Mataram Scheme ?

    Vande mataram schem is a nationwide programme aimed at improving ante and post-natal

    carewhich was launched on February 9, 2004. The scheme envisages free ante and post-

    natal check-ups, tips to avoid nutritional problems and anemia and counseling on small

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    family norm and is a major initiative in Public Private partnerships during emergency.

    53. What is Golden Handshake Scheme?

    Golden handshake scheme is a Govt. of India scheme introduced as a Voluntary retirement

    Scheme (VRS) in Industrial Policy Resolution 1991 for reducing the pressure of extra

    employees on public sector enterprises.

    54. What is India Brand Equity Fund?This is a scheme to promote Indian Brands in Overseas Markets with the primary objective

    of brand promotion and not export promotion. To make the Made in India label a symbol of

    quality, competitive price, reliability and service to the customer & to project India as a

    reliable supplier of quality goods and services. It was established on July 11, 1996.

    55. What is Jago Grahak Jago?

    The Consumer Awareness Scheme for the XI Plan amounting to a total of Rs. 409 crores

    has been approved by the Cabinet Committee on Economic Affairs on 24.01.08. This

    scheme has been formulated to give an increased thrust to a multi media publicity

    campaign to make consumers aware of their rights. The slogan Jago Grahak Jago is part

    of the publicity campaign undertaken in the last few years.Jago Grahak Jago has become the focal theme through which issues concerning the

    functioning of almost all Government Departments having a consumer interface can been

    addressed. To achieve this objective joint campaigns have been undertaken/are being

    undertaken with a number of Government Departments.

    56. What is a revolving credit?

    Revolving credit is a type of credit that does not have a fixed number of payments.

    Corporate revolving credit facilities are typically used to provide liquidity for a companys

    day-to-day operations.The credit cards are examples of revolving credit. They are renewed

    automatically until the notice of cancellation is receieved. The time of repayment is

    specified.57. What is Gender Budgeting?

    Gender budgeting is the process of conceiving, planning, approving, executing, monitoring,

    analyzing and auditing budgets in a gender-sensitive way. Gender Budgeting is actually an

    attempt to women upliftment without any sex discrimination while formulating the policies

    and making allocation for them.

    Gender Budgeting is a process that entails incorporating a gender perspective at various

    stages- planning/ policy/ programme formulation, assessment of needs of target groups,

    allocation of resources, implementation, impact assessment, reprioritization of resources.

    Gender Responsive Budget and Gender Mainstreaming are outcomes of Gender

    Budgeting.58. What is Soft Currency?

    Soft currency is opposite of hard currency and it indicates a type of currency whose value

    may depreciate rapidly or that is difficult to convert into other currencies. Soft currency can

    be in the form of paper, electronic or debt-based IOUs which have in the past been used

    in place of hard currency. This currency has limited convertibility into gold and other

    currencies.

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    59. What are factors of production?

    The resources and the inputs which are required to produce a good or service is called

    factor of production. The basic categories are land labor and capital.

    60. What is the principle of Diminishing returns?

    This principle says that if one factor of production is fixed and constant additions of other

    factors are combined with this, the marginal productivity of variable factors will eventuallydecline. According to this relationship, in a production system with fixed and variable inputs

    (say factory size and labor), beyond some point, each additional unit of the variable input

    yields smaller and smaller increases in output. Conversely, producing one more unit of

    output costs more and more in variable inputs1. What is Balance of Trade?

    The value of a countrys exports minus the value of its imports. Unless specified as the

    balance of merchandise trade, it normally incorporates trade in services, including earnings

    (interest, dividends, etc.) on financial assets.

    2. What is Balanced Trade?

    When A balance of trade equal to zero. (exports-imports=0)

    3. What is Balance of merchandise trade?The value of a countrys merchandise exports minus the value of its merchandise imports.

    4. What is a favorable balance of trade?

    It is the difference between exports and imports. Debit items include imports, foreign aid,

    domestic spending abroad and domestic investments abroad. Credit items include exports,

    foreign spending in the domestic economy and foreign investments in the domestic

    economy. A country has a trade deficit if it imports more than it exports; the opposite

    scenario is a trade surplus.

    5. What is Balance of Payments?

    A list, or accounting, of all of a countrys international transactions for a given time period,

    usually one year. Payments into the country (receipts) are entered as positive numbers,called credits; payments out of the country (payments) are entered as negative numbers

    called debits. A single number summarizing all of a countrys international transactions: the

    balance of payments surplus.

    6. What is Balance of payments adjustment mechanism?

    Any process, especially any automatic one, by which a country with a payments imbalance

    moves toward balance of payments equilibrium

    7. What is Monopolistic Competition?

    A market structure in which there are many sellers each producing a differentiated product.

    Each can set its own price and quantity, but is too small for that to matter for prices and

    quantities of other producers in the industry.8. What is MFN?

    MFN stands for Most Favoured Nation. The principle, fundamental to the GATT, of treating

    imports from a country on the same basis as that given to the most favored other nation.

    That is, and with some exceptions, every country gets the lowest tariff that any country gets,

    and reductions in tariffs to one country are provided also to others.

    9. What is Gold Standard?

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    A monetary system in which both the value of a unit of the currency and the quantity of it in

    circulation are specified in terms of gold. If two currencies are both on the gold standard,

    then the exchange rate between them is approximately determined by their two prices in

    terms of gold.

    10. What is Balance on capital account?

    A countrys receipts minus payments for capital account transactions.11. What is Balance on current account ?

    A countrys receipts minus payments for current account transactions. Equals the balance

    of trade plus net inflows of transfer payments.

    12. What is a Balanced budget ?

    A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A

    balanced budget change in policy or behavior is one in which a component of the

    government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.

    13. What is balanced growth of an Economy?

    Growth of an economy in which all aspects of it, especially factors of production, grow at the

    same rate.14. What is a Bank rate

    The interest rate charged by a central bank to commercial banks for very short term loans.

    15. What is a Repo?

    Repo is Repurchase Agreement. An agreement to sell a security for a specified price and

    to buy it back later at another specified price. A repo is essentially a secured loan.

    16. What is Repo Rate?

    Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is

    the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help

    banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI

    becomes more expensive. On March 4, 2009 it was 5% in India (please check the latestfigure by RBI)

    17. What is CRR Rate in India?

    Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If

    RBI decides to increase the percent of this, the available amount with the banks comes

    down. RBI is using this method (increase of CRR rate), to drain out the excessive money

    from the banks.

    18. What is a Reverse Repo Rate?

    Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from

    banks. Banks are always happy to lend money to RBI since their money are in safe hands

    with a good interest. An increase in Reverse repo rate can cause the banks to transfer morefunds to RBI due to this attractive interest rates. It can cause the money to be drawn out of

    the banking system. Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo

    Rate and Reverse Repo rate our banks adjust their lending or investment rates for common

    man. On March 4, 2009 Reverse Repo Rate is 3.5% (please check latest rate by RBI)

    19. What is SLR Rate?

    SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the

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    form of cash, or gold or govt. approved securities (Bonds) before providing credit to its

    customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in

    order to control the expansion of bank credit.

    20. How is SLR determined?

    SLR is determined as the percentage of total demand and percentage of time liabilities.

    Time Liabilities are the liabilities a commercial bank liable to pay to the customers on theiranytime demand. .

    21. What is the Need of SLR?

    With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a commercial

    bank. It is also helpful to control the expansion of Bank Credits. By changing the SLR rates,

    RBI can increase or decrease bank credit expansion. Also through SLR, RBI compels the

    commercial banks to invest in government securities like government bonds..

    22. What is the main use of SLR?

    SLR is used to control inflation and propel growth. Through SLR rate tuning the money

    supply in the system can be controlled efficiently.

    23. What is Inflation in India?Increase in the overall price level of an economy, usually as measured by the CPI /WPI or

    by the implicit price deflator. Inflation is as an increase in the price of bunch of Goods and

    services that projects the Indian economy. An increase in inflation figures occurs when

    there is an increase in the average level of prices in Goods and services. Inflation happens

    when there are less Goods and more buyers, this will result in increase in the price of

    Goods, since there is more demand and less supply of the goods..

    24. What is Deflation?

    A fall in the general level of prices. Unlikely unless the rate of inflation is already low, it may

    then be due either to a surge in productivity or, less favorably, to a recession. Deflation is

    the continuous decrease in prices of goods and services. Deflation occurs when the inflationrate becomes negative (below zero) and stays there for a longer period.

    25. What is a Barter economy?

    An economic model of international trade in which goods are exchanged for goods without

    the existence of money. Most theoretical trade models take this form in order to abstract

    from macroeconomic and monetary considerations.

    26.What is Basel I?

    Also known at Basel Capital Accord, this was an agreement in 1988 by the Basel

    Committee of central bankers to measure the credit risk of commercial banks and set

    minimum standards for bank capital in order to reduce the likelihood of international

    repercussions due to bank failures.27.What is Basel II?

    The Basel II Framework describes a more comprehensive measure and minimum standard

    for capital adequacy that national supervisory authorities are now working to implement

    through domestic rule-making and adoption procedures. It seeks to improve on the existing

    rules by aligning regulatory capital requirements more closely to the underlying risks that

    banks face. In addition, the Basel II Framework is intended to promote a more forward-

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    looking approach to capital supervision, one that encourages banks to identify the risks they

    may face, today and in the future, and to develop or improve their ability to manage those

    risks. As a result, it is intended to be more flexible and better able to evolve with advances

    in markets and risk management practices.

    The efforts of the Basel Committee on Banking Supervision to revise the standards

    governing the capital adequacy of internationally active banks achieved a critical milestonein the publication of an agreed text in June 2004.

    28.What is a Beggar thy neighbor policy?

    For a country to use a policy for its own benefit that harms other countries. Examples are

    optimal tariffs and, in a recession, tariffs and/or devaluation to create employment.

    29. What is a Bill of Lading?

    This term is normally used in shipping industry. The receipt given by a transportation

    company to an exporter when the former accepts goods for transport. It includes the

    contract specifying what transport service will be provided and the limits of liability.

    30. What is the use of color boxes in WTO category of subsidies?

    Used with a color, a category of subsidies based on status in WTO: red=forbidden, amberor orange=go slow, green=permitted, blue=subsidies tied to production limits. Terminology

    seems only to be used in agriculture, where in fact there is no red box.

    31. What is a fiscal deficit?

    A deficit in the government budget of a country and represents the excess of expenditure

    over income. So this is the amount of borrowed funds required by the government to meet

    its expenditures completely.

    Indias fiscal deficit widened to Rs. 541.58 billion in April, 2009 as compared to Rs. 329.39

    billion rupees in April 2008.

    32. What is Black Money ?

    Black Money is the unaccounted money concealed from the tax authorities. The blackmoney runs a parallel economy adversely affecting the distribution of wealth & income in

    the economy.

    The total amount of black money globally is estimated between $2.1 and 2.5 trillion. This is

    roughly about seven percent of the worlds GDP.

    33.What is a Black Market?

    A black market is an illegal market, in which something is bought and sold outside of official

    government-sanctioned channels. Black markets tend to arise when a government tries to

    fix a price without itself providing all of the necessary supply or demand. Black markets in

    foreign exchange almost always exist when there are exchange controls.

    34.What is a blue chip company? Why it is blue color only used in such companies?A blue chip is concerned with stocks & shares of company, which are well established and

    whose purchase is considered extremely safe. Due to stable earnings and no extensive

    liabilities these companies are called blue chip companies.

    The term blue chip comes from casinos, where blue chips stand for counters of the highest

    value. Most blue chip stocks pay regular dividends, even when business is faring worse

    than usual.

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    35.What is a direct Tax?

    A direct tax is that which is paid directly by someone to taxing authority. Income tax and

    property tax are examples of direct tax. They are not shifted to somebody else.

    36.What is an Indirect Tax?

    This type of tax is not paid by someone directly to the authorities and it is actually passed

    on to the other in the form of increased cost. They are levied on goods and servicesproduced or purchased. Excise tax, Sales tax, VAT are indirect taxes.

    37.What are LDCs or Least Developed Countries?

    Least Developed Countries (LDCs) are countries which as per United Nations show the

    lowest indicators of socioeconomic development.

    They have lowest Human Development Index ratings of all countries in the world.

    A country which has three-year average Gross national Income per capita of less than US

    $750 is tagged as LDC. a LDC must have an income of $ 900 to escape this tag. Besides if

    thse countries show human resource weakness based on indicators of nutrition, health,

    education and adult literacy and also or economic vulnerability based on instability of

    economy . Currently UN has tagged 49 countries in LDC. India is not an LDC.38.What are Middle Income Countries ?

    Middle-income countries (MICs) are the 86 countries that fall into the middle-income range

    set by the Banks World Development Indicators. They account for just under half of the

    worlds population; are home to one-third of people across the globe living on less than $2

    per day; and are found in all six of the Banks geographical regions. They cover a wide

    income range, with the highest income MIC having a per capita income 10 times that of the

    lowest.

    39.What is Policy of Laissez Faire?

    Laissez Faire is a French term and means no interference. It is a doctrine that states that

    government generally should not intervene in the marketplace.40.What is the difference between Monopoly and Monopsony ?

    In monopsony only one buyerfaces many sellers. So this is called Buyers Monopoly. It is a

    rare situation in todays economy.

    In monopoly one seller faces many buyers. As the only purchaser of a good or service, the

    monopsonist may dictate terms to its suppliers in the same manner that a monopolist

    controls the market for its buyers.

    41.What is the main function of Competition Commission of India?

    CCI is an independent body which become operational w.e.f. May 20, 2009 and is

    responsible for investigating the mergers, market shares & conditions besides regulating

    firms. CCI will ultimately replace the Monopolies and Restrictive Trade PracticesCommission (MRTPC) ofIndia.

    42.What is Lead Bank Scheme?

    Lead bank scheme was introduced around 40 years ago and recently it was in the news as

    a high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to

    review and revitalize this scheme. The scheme aims at facilitating credit delivery to the

    farfetched areas ofIndia. There are members of the committee from NABARD and SIDBI.

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    Thus the scheme focuses upon financial inclusion.

    The Opinion of this committee is that full financial inclusion is possible only if it makes a

    facility of opening of no frill accounts backed by other specialized services.

    43.What are Nostro & Vostro Accounts ?

    A nostro account is maintained by an Indian Bank in the foreign countries for a facility of

    easy clearing of their transactions. For instance, if the bank pays a demand drawn on it byits correspondent bank, there is no delay because the foreign corresponded bank would

    already have credited the nostro account of the paying bank while issuing the demand draft.

    A vostro account is maintained by a foreign bank in India with their corresponding bank.

    44.From which country India imports maximum?

    From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3

    years. This is 10.3 % of all the imports of India.

    45.What is Gold Standard?

    A system of setting currency values whereby the participating countries commit to fix the

    prices of their domestic currencies in terms of a specified amount of gold.

    46.What is a Free Float Exchange Rate system?An exchange rate system characterized by the absence of government intervention. Also

    known as a clean float.

    47.What are Special Drawing rights SDR?

    SDR are new form of international reserve assets, created by the International Monetary

    Funds in 1967. The value of SDR is based on a portfolio of widely used currencies and they

    are maintained as accounting entries and not as hard currency or physical assets like Gold.

    48.What are the requirements to open a New Branch in Rural Area?

    Since 2006, RBI has approved the opening of new branches only on the condition that at

    least half of such branches are opened in under-banked areas as notified by the regulator.

    The opening of branches by banks is governed by the provisions of Section 23 of theBanking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place

    of business inIndia or abroad or change otherwise than within the same city, town or village,

    the location of the existing place of business without the prior approval of the ReserveBank

    of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/ license from Rural

    Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.

    RRB should fulfill the following conditions to become eligible for opening of new branch/es.

    1. It should not have defaulted in maintenance of SLR and CRR during the last two years.

    2. The RRB should be making operational profits, its net worth should show improvement 3.

    Its net NPA ratio should not exceed 8 per cent.

    49.What is concept sustainable Development?Meeting the needs of the present without compromising the ability of future generations to

    meet their needs is called sustainable development. This concept is popular in present

    context of development.

    50.What is the meaning of Financial Inclusion?

    Today is is well recognized that large population of India is out of reach of the formal

    banking services. Financial inclusion is the concept which has been floated to bring the

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    most of the rural population / area under the net of the financial and banking services.

    51. What is SATMO?

    SATMO is Satellite Money Order Service introduced by Postal Department Govt. of India on

    December 16, 1994. However this scheme could not make its headway due to functional

    complicacies.

    52. What is Vande Mataram Scheme ?Vande mataram schem is a nationwide programme aimed at improving ante and post-natal

    carewhich was launched on February 9, 2004. The scheme envisages free ante and post-

    natal check-ups, tips to avoid nutritional problems and anemia and counseling on small

    family norm and is a major initiative in Public Private partnerships during emergency.

    53. What is Golden Handshake Scheme?

    Golden handshake scheme is a Govt. of India scheme introduced as a Voluntary retirement

    Scheme (VRS) in Industrial Policy Resolution 1991 for reducing the pressure of extra

    employees on public sector enterprises.

    54. What is India Brand Equity Fund?

    This is a scheme to promote Indian Brands in Overseas Markets with the primary objectiveof brand promotion and not export promotion. To make the Made in India label a symbol of

    quality, competitive price, reliability and service to the customer & to project India as a

    reliable supplier of quality goods and services. It was established on July 11, 1996.

    55. What is Jago Grahak Jago?

    The Consumer Awareness Scheme for the XI Plan amounting to a total of Rs. 409 crores

    has been approved by the Cabinet Committee on Economic Affairs on 24.01.08. This

    scheme has been formulated to give an increased thrust to a multi media publicity

    campaign to make consumers aware of their rights. The slogan Jago Grahak Jago is part

    of the publicity campaign undertaken in the last few years.

    Jago Grahak Jago has become the focal theme through which issues concerning thefunctioning of almost all Government Departments having a consumer interface can been

    addressed. To achieve this objective joint campaigns have been undertaken/are being

    undertaken with a number of Government Departments.

    56. What is a revolving credit?

    Revolving credit is a type of credit that does not have a fixed number of payments.

    Corporate revolving credit facilities are typically used to provide liquidity for a companys

    day-to-day operations.The credit cards are examples of revolving credit. They are renewed

    automatically until the notice of cancellation is receieved. The time of repayment is

    specified.

    57. What is Gender Budgeting?Gender budgeting is the process of conceiving, planning, approving, executing, monitoring,

    analyzing and auditing budgets in a gender-sensitive way. Gender Budgeting is actually an

    attempt to women upliftment without any sex discrimination while formulating the policies

    and making allocation for them.

    Gender Budgeting is a process that entails incorporating a gender perspective at various

    stages- planning/ policy/ programme formulation, assessment of needs of target groups,

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    allocation of resources, implementation, impact assessment, reprioritization of resources.

    Gender Responsive Budget and Gender Mainstreaming are outcomes of Gender

    Budgeting.

    58. What is Soft Currency?

    Soft currency is opposite of hard currency and it indicates a type of currency whose value

    may depreciate rapidly or that is difficult to convert into other currencies. Soft currency canbe in the form of paper, electronic or debt-based IOUs which have in the past been used

    in place of hard currency. This currency has limited convertibility into gold and other

    currencies.

    59. What are factors of production?

    The resources and the inputs which are required to produce a good or service is called

    factor of production. The basic categories are land labor and capital.

    60. What is the principle of Diminishing returns?

    This principle says that if one factor of production is fixed and constant additions of other

    factors are combined with this, the marginal productivity of variable factors will eventually

    decline. According to this relationship, in a production system with fixed and variable inputs(say factory size and labor), beyond some point, each additional unit of the variable input

    yields smaller and smaller increases in output. Conversely, producing one more unit of

    output costs more and more in variable inputs1. What is Balance of Trade?

    The value of a countrys exports minus the value of its imports. Unless specified as the

    balance of merchandise trade, it normally incorporates trade in services, including earnings

    (interest, dividends, etc.) on financial assets.

    2. What is Balanced Trade?

    When A balance of trade equal to zero. (exports-imports=0)

    3. What is Balance of merchandise trade?

    The value of a countrys merchandise exports minus the value of its merchandise imports.4. What is a favorable balance of trade?

    It is the difference between exports and imports. Debit items include imports, foreign aid,

    domestic spending abroad and domestic investments abroad. Credit items include exports,

    foreign spending in the domestic economy and foreign investments in the domestic

    economy. A country has a trade deficit if it imports more than it exports; the opposite

    scenario is a trade surplus.

    5. What is Balance of Payments?

    A list, or accounting, of all of a countrys international transactions for a given time period,

    usually one year. Payments into the country (receipts) are entered as positive numbers,

    called credits; payments out of the country (payments) are entered as negative numberscalled debits. A single number summarizing all of a countrys international transactions: the

    balance of payments surplus.

    6. What is Balance of payments adjustment mechanism?

    Any process, especially any automatic one, by which a country with a payments imbalance

    moves toward balance of payments equilibrium

    7. What is Monopolistic Competition?

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    A market structure in which there are many sellers each producing a differentiated product.

    Each can set its own price and quantity, but is too small for that to matter for prices and

    quantities of other producers in the industry.

    8. What is MFN?

    MFN stands for Most Favoured Nation. The principle, fundamental to the GATT, of treating

    imports from a country on the same basis as that given to the most favored other nation.That is, and with some exceptions, every country gets the lowest tariff that any country gets,

    and reductions in tariffs to one country are provided also to others.

    9. What is Gold Standard?

    A monetary system in which both the value of a unit of the currency and the quantity of it in

    circulation are specified in terms of gold. If two currencies are both on the gold standard,

    then the exchange rate between them is approximately determined by their two prices in

    terms of gold.

    10. What is Balance on capital account?

    A countrys receipts minus payments for capital account transactions.

    11. What is Balance on current account ?A countrys receipts minus payments for current account transactions. Equals the balance

    of trade plus net inflows of transfer payments.

    12. What is a Balanced budget ?

    A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A

    balanced budget change in policy or behavior is one in which a component of the

    government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.

    13. What is balanced growth of an Economy?

    Growth of an economy in which all aspects of it, especially factors of production, grow at the

    same rate.

    14. What is a Bank rateThe interest rate charged by a central bank to commercial banks for very short term loans.

    15. What is a Repo?

    Repo is Repurchase Agreement. An agreement to sell a security for a specified price and

    to buy it back later at another specified price. A repo is essentially a secured loan.

    16. What is Repo Rate?

    Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is

    the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help

    banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI

    becomes more expensive. On March 4, 2009 it was 5% in India (please check the latest

    figure by RBI)17. What is CRR Rate in India?

    Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If

    RBI decides to increase the percent of this, the available amount with the banks comes

    down. RBI is using this method (increase of CRR rate), to drain out the excessive money

    from the banks.

    18. What is a Reverse Repo Rate?

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    Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from

    banks. Banks are always happy to lend money to RBI since their money are in safe hands

    with a good interest. An increase in Reverse repo rate can cause the banks to transfer more

    funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of

    the banking system. Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo

    Rate and Reverse Repo rate our banks adjust their lending or investment rates for commonman. On March 4, 2009 Reverse Repo Rate is 3.5% (please check latest rate by RBI)

    19. What is SLR Rate?

    SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the

    form of cash, or gold or govt. approved securities (Bonds) before providing credit to its

    customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in

    order to control the expansion of bank credit.

    20. How is SLR determined?

    SLR is determined as the percentage of total demand and percentage of time liabilities.

    Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their

    anytime demand. .21. What is the Need of SLR?

    With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a commercial

    bank. It is also helpful to control the expansion of Bank Credits. By changing the SLR rates,

    RBI can increase or decrease bank credit expansion. Also through SLR, RBI compels the

    commercial banks to invest in government securities like government bonds..

    22. What is the main use of SLR?

    SLR is used to control inflation and propel growth. Through SLR rate tuning the money

    supply in the system can be controlled efficiently.

    23. What is Inflation in India?

    Increase in the overall price level of an economy, usually as measured by the CPI /WPI orby the implicit price deflator. Inflation is as an increase in the price of bunch of Goods and

    services that projects the Indian economy. An increase in inflation figures occurs when

    there is an increase in the average level of prices in Goods and services. Inflation happens

    when there are less Goods and more buyers, this will result in increase in the price of

    Goods, since there is more demand and less supply of the goods..

    24. What is Deflation?

    A fall in the general level of prices. Unlikely unless the rate of inflation is already low, it may

    then be due either to a surge in productivity or, less favorably, to a recession. Deflation is

    the continuous decrease in prices of goods and services. Deflation occurs when the inflation

    rate becomes negative (below zero) and stays there for a longer period.25. What is a Barter economy?

    An economic model of international trade in which goods are exchanged for goods without

    the existence of money. Most theoretical trade models take this form in order to abstract

    from macroeconomic and monetary considerations.

    26.What is Basel I?

    Also known at Basel Capital Accord, this was an agreement in 1988 by the Basel

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    Committee of central bankers to measure the credit risk of commercial banks and set

    minimum standards for bank capital in order to reduce the likelihood of international

    repercussions due to bank failures.

    27.What is Basel II?

    The Basel II Framework describes a more comprehensive measure and minimum standard

    for capital adequacy that national supervisory authorities are now working to implementthrough domestic rule-making and adoption procedures. It seeks to improve on the existing

    rules by aligning regulatory capital requirements more closely to the underlying risks that

    banks face. In addition, the Basel II Framework is intended to promote a more forward-

    looking approach to capital supervision, one that encourages banks to identify the risks they

    may face, today and in the future, and to develop or improve their ability to manage those

    risks. As a result, it is intended to be more flexible and better able to evolve with advances

    in markets and risk management practices.

    The efforts of the Basel Committee on Banking Supervision to revise the standards

    governing the capital adequacy of internationally active banks achieved a critical milestone

    in the publication of an agreed text in June 2004.28.What is a Beggar thy neighbor policy?

    For a country to use a policy for its own benefit that harms other countries. Examples are

    optimal tariffs and, in a recession, tariffs and/or devaluation to create employment.

    29. What is a Bill of Lading?

    This term is normally used in shipping industry. The receipt given by a transportation

    company to an exporter when the former accepts goods for transport. It includes the

    contract specifying what transport service will be provided and the limits of liability.

    30. What is the use of color boxes in WTO category of subsidies?

    Used with a color, a category of subsidies based on status in WTO: red=forbidden, amber

    or orange=go slow, green=permitted, blue=subsidies tied to production limits. Terminologyseems only to be used in agriculture, where in fact there is no red box.

    31. What is a fiscal deficit?

    A deficit in the government budget of a country and represents the excess of expenditure

    over income. So this is the amount of borrowed funds required by the government to meet

    its expenditures completely.

    Indias fiscal deficit widened to Rs. 541.58 billion in April, 2009 as compared to Rs. 329.39

    billion rupees in April 2008.

    32. What is Black Money ?

    Black Money is the unaccounted money concealed from the tax authorities. The black

    money runs a parallel economy adversely affecting the distribution of wealth & income inthe economy.

    The total amount of black money globally is estimated between $2.1 and 2.5 trillion. This is

    roughly about seven percent of the worlds GDP.

    33.What is a Black Market?

    A black market is an illegal market, in which something is bought and sold outside of official

    government-sanctioned channels. Black markets tend to arise when a government tries to

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    fix a price without itself providing all of the necessary supply or demand. Black markets in

    foreign exchange almost always exist when there are exchange controls.

    34.What is a blue chip company? Why it is blue color only used in such companies?

    A blue chip is concerned with stocks & shares of company, which are well established and

    whose purchase is considered extremely safe. Due to stable earnings and no extensive

    liabilities these companies are called blue chip companies.The term blue chip comes from casinos, where blue chips stand for counters of the highest

    value. Most blue chip stocks pay regular dividends, even when business is faring worse

    than usual.

    35.What is a direct Tax?

    A direct tax is that which is paid directly by someone to taxing authority. Income tax and

    property tax are examples of direct tax. They are not shifted to somebody else.

    36.What is an Indirect Tax?

    This type of tax is not paid by someone directly to the authorities and it is actually passed

    on to the other in the form of increased cost. They are levied on goods and services

    produced or purchased. Excise tax, Sales tax, VAT are indirect taxes.37.What are LDCs or Least Developed Countries?

    Least Developed Countries (LDCs) are countries which as per United Nations show the

    lowest indicators of socioeconomic development.

    They have lowest Human Development Index ratings of all countries in the world.

    A country which has three-year average Gross national Income per capita of less than US

    $750 is tagged as LDC. a LDC must have an income of $ 900 to escape this tag. Besides if

    thse countries show human resource weakness based on indicators of nutrition, health,

    education and adult literacy and also or economic vulnerability based on instability of

    economy . Currently UN has tagged 49 countries in LDC. India is not an LDC.

    38.What are Middle Income Countries ?Middle-income countries (MICs) are the 86 countries that fall into the middle-income range

    set by the Banks World Development Indicators. They account for just under half of the

    worlds population; are home to one-third of people across the globe living on less than $2

    per day; and are found in all six of the Banks geographical regions. They cover a wide

    income range, with the highest income MIC having a per capita income 10 times that of the

    lowest.

    39.What is Policy of Laissez Faire?

    Laissez Faire is a French term and means no interference. It is a doctrine that states that

    government generally should not intervene in the marketplace.

    40.What is the difference between Monopoly and Monopsony ?In monopsony only one buyer faces many sellers. So this is called Buyers Monopoly. It is a

    rare situation in todays economy.

    In monopoly one seller faces many buyers. As the only purchaser of a good or service, the

    monopsonist may dictate terms to its suppliers in the same manner that a monopolist

    controls the market for its buyers.

    41.What is the main function of Competition Commission of India?

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    CCI is an independent body which become operational w.e.f. May 20, 2009 and is

    responsible for investigating the mergers, market shares & conditions besides regulating

    firms. CCI will ultimately replace the Monopolies and Restrictive Trade Practices

    Commission (MRTPC) ofIndia.

    42.What is Lead Bank Scheme?

    Lead bank scheme was introduced around 40 years ago and recently it was in the news asa high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to

    review and revitalize this scheme. The scheme aims at facilitating credit delivery to the

    farfetched areas ofIndia. There are members of the committee from NABARD and SIDBI.

    Thus the scheme focuses upon financial inclusion.

    The Opinion of this committee is that full financial inclusion is possible only if it makes a

    facility of opening of no frill accounts backed by other specialized services.

    43.What are Nostro & Vostro Accounts ?

    A nostro account is maintained by an Indian Bank in the foreign countries for a facility of

    easy clearing of their transactions. For instance, if the bank pays a demand drawn on it by

    its correspondent bank, there is no delay because the foreign corresponded bank wouldalready have credited the nostro account of the paying bank while issuing the demand draft.

    A vostro account is maintained by a foreign bank in India with their corresponding bank.

    44.From which country India imports maximum?

    From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3

    years. This is 10.3 % of all the imports of India.

    45.What is Gold Standard?

    A system of setting currency values whereby the participating countries commit to fix the

    prices of their domestic currencies in terms of a specified amount of gold.

    46.What is a Free Float Exchange Rate system?

    An exchange rate system characterized by the absence of government intervention. Alsoknown as a clean float.

    47.What are Special Drawing rights SDR?

    SDR are new form of international reserve assets, created by the International Monetary

    Funds in 1967. The value of SDR is based on a portfolio of widely used currencies and they

    are maintained as accounting entries and not as hard currency or physical assets like Gold.

    48.What are the requirements to open a New Branch in Rural Area?

    Since 2006, RBI has approved the opening of new branches only on the condition that at

    least half of such branches are opened in under-banked areas as notified by the regulator.

    The opening of branches by banks is governed by the provisions of Section 23 of the

    Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new placeof business inIndia or abroad or change otherwise than within the same city, town or village,

    the location of the existing place of business without the prior approval of the ReserveBank

    of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/ license from Rural

    Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.

    RRB should fulfill the following conditions to become eligible for opening of new branch/es.

    1. It should not have defaulted in maintenance of SLR and CRR during the last two years.

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    2. The RRB should be making operational profits, its net worth should show improvement 3.

    Its net NPA ratio should not exceed 8 per cent.

    49.What is concept sustainable Development?

    Meeting the needs of the present without compromising the ability of future generations to

    meet their needs is called sustainable development. This concept is popular in present

    context of development.50.What is the meaning of Financial Inclusion?

    Today is is well recognized that large population of India is out of reach of the formal

    banking services. Financial inclusion is the concept which has been floated to bring the

    most of the rural population / area under the net of the financial and banking services.

    51. What is SATMO?

    SATMO is Satellite Money Order Service introduced by Postal Department Govt. of India on

    December 16, 1994. However this scheme could not make its headway due to functional

    complicacies.

    52. What is Vande Mataram Scheme ?

    Vande mataram schem is a nationwide programme aimed at improving ante and post-natalcarewhich was launched on February 9, 2004. The scheme envisages free ante and post-

    natal check-ups, tips to avoid nutritional problems and anemia and counseling on small

    family norm and is a major initiative in Public Private partnerships during emergency.

    53. What is Golden Handshake Scheme?

    Golden handshake scheme is a Govt. of India scheme introduced as a Voluntary retirement

    Scheme (VRS) in Industrial Policy Resolution 1991 for reducing the pressure of extra

    employees on public sector enterprises.

    54. What is India Brand Equity Fund?

    This is a scheme to promote Indian Brands in Overseas Markets with the primary objective

    of brand promotion and not export promotion. To make the Made in India label a symbol ofquality, competitive price, reliability and service to the customer & to project India as a

    reliable supplier of quality goods and services. It was established on July 11, 1996.

    55. What is Jago Grahak Jago?

    The Consumer Awareness Scheme for the XI Plan amounting to a total of Rs. 409 crores

    has been approved by the Cabinet Committee on Economic Affairs on 24.01.08. This

    scheme has been formulated to give an increased thrust to a multi media publicity

    campaign to make consumers aware of their rights. The slogan Jago Grahak Jago is part

    of the publicity campaign undertaken in the last few years.

    Jago Grahak Jago has become the focal theme through which issues concerning the

    functioning of almost all Government Departments having a consumer interface can beenaddressed. To achieve this objective joint campaigns have been undertaken/are being

    undertaken with a number of Government Departments.

    56. What is a revolving credit?

    Revolving credit is a type of credit that does not have a fixed number of payments.

    Corporate revolving credit facilities are typically used to provide liquidity for a companys

    day-to-day operations.The credit cards are examples of revolving credit. They are renewed

  • 7/31/2019 Bank Concept

    22/22

    automatically until the notice of cancellation is receieved. The time of repayment is

    specified.

    57. What is Gender Budgeting?

    Gender budgeting is the process of conceiving, planning, approving, executing, monitoring,

    analyzing and auditing budgets in a gender-sensitive way. Gender Budgeting is actually an

    attempt to women upliftment without any sex discrimination while formulating the policiesand making allocation for them.

    Gender Budgeting is a process that entails incorporating a gender perspective at various

    stages- planning/ policy/ programme formulation, assessment of needs of target groups,

    allocation of resources, implementation, impact assessment, reprioritization of resources.

    Gender Responsive Budget and Gender Mainstreaming are outcomes of Gender

    Budgeting.

    58. What is Soft Currency?

    Soft currency is opposite of hard currency and it indicates a type of currency whose value

    may depreciate rapidly or that is difficult to convert into other currencies. Soft currency can

    be in the form of paper, electronic or debt-based IOUs which have in the past been usedin place of hard currency. This currency has limited convertibility into gold and other

    currencies.

    59. What are factors of production?

    The resources and the inputs which are required to produce a good or service is called

    factor of production. The basic categories are land labor and capital.

    60. What is the principle of Diminishing returns?

    This principle says that if one factor of production is fixed and constant additions of other

    factors are combined with this, the marginal productivity of variable factors will eventually

    decline. According to this relationship, in a production system with fixed and variable inputs

    (say factory size and labor), beyond some point, each additional unit of the variable inputyields smaller and smaller increases in output. Conversely, producing one more unit of

    output costs more and more in variable inputs


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