The Financial System comprises a mixture of intermediaries, markets and instruments that are related to each other. it provides a system by which savings are transformed into investments. there are more IBPS and SBI banks exams and interviews related question provided, which are given underneath:
IBPS/SBI Bank Exams And Interviews Questions-
Question1: What is a bank?
Answer1: A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money.
Question2: What are the primary functions of a commercial bank ?
Answer2: Commercial bank include public sector banks, foreign banks, and private sector banks. Acceptance of deposits from the public for the purpose of landing or investment is the main area of activity. The primary functions of a commercial bank include:
(a) Accepting deposits
(b) Granting loans and advances
Question3: What are the functions of Reserve Bank of India ?
Answer3: Mainly the functions of RBI are classified as follows:
* Bank of Issue
* Banker to Government
* Banker’s Bank and Lender of the Last Resort
* Controller of Credit
* Custodian of Foreign Reserves
* Supervisory functions
* Promotional functions
Question4: What is Bank rate ?
Answer4: A Bank rate is the interest rate that is charged by a country’s central or federal bank on loans and advances to control money supply in the economy and the banking sector. This is typically done on a quarterly basis to control inflation and stabilize the country’s exchange rates. A fluctuation in bank rates triggers a ripple-effect as it impacts every sphere of a country’s economy. For instance, the prices in stock markets tend to react to interest rate changes. A change in bank rates affects customers as it influences prime interest rates for personal loans.
Question5: What is Cash Reserve Ratio (CRR)?
Answer5: The Cash Reserve Ratio (CRR) refers to the liquid cash that banks have to maintain with the Reserve Bank of India (RBI) as a certain percentage of their demand and time liabilities. For example if the CRR is 10% then a bank with net demand and time deposits of Rs 1,00,000 will have to deposit Rs 10,000 with the RBI as liquid cash.
Question6: What is Statutory Liquidity Ratio (SLR)?
Answer6: Statutory Liquidity Ratio (SLR) refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities before providing credit to the customers. Statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit.
Question7: What is Repo rate ?
Answer7: Whenever the banks have any shortage of funds they can borrow it from the central bank. Repo rate is the rate at which our banks borrow currency from the central bank. A reduction in the repo rate will help banks to get Money at a cheaper rate. When the repo rate increases borrowing from the central bank becomes more expensive.The Reverse repo rate is the rate at which the central bank borrows from the banks, while the Repo rate is the rate at which the banks borrow from the central bank.
Question8: What Is Inflation?
Answer8: Inflation is increase in price of products & decrease in value of money.
Question9: What is the Difference between Repo rate and Bank rate?
Answer9: The Main difference between Repo rate and Bank rate is that Repo rate is the discounting offered by the RBI on the monetary bill hold by the Banks
Question10: Can you explain the reforms that taken place in the Indian banking industry ?
Answer10: The Narasimham Committee laid the foundation for the reformation of the Indian banking sector.Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector.
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Question11: Tell Us About Plastic Money?
Answer11: Payments for purchase can be made in cash, checks or cards. in respect of cash, there is the limitation that bigger payments cannot be made in cash on account of the need to carry bulk. cheques are not often accepted as the credit standing of the person issuing a chheques is not apparent. In the circumstances, plastic money in the form of credit and other cards has become a preferred mode of payments and has wide acceptance among public.with the increasing use of the plastic money, the finencial system is moving more towards cashless transactions.
Question12: Tell Us About Lease Financing?
Answer12: this means leasing out the capital purchase of asserts to another company against monthaly rents for assert’s consumption or use.
Question13: Describe the Mutual funds?
Answer14: Mutual fund is a mechanism for pooling resources from the public by issuing units to them and investing the funds, so callected in securities in accordance with objectives as disclosed in an other document mutual fund issues units to investors in accordance with the quantum of money invested by them, investors of mutal funds are known as unit holders.
Question14: Tell us About SEBI Act?
Question15: What is Stock brokers?
Answer15: A broker is a member of a recognised stock exchange, who is permitted to do trading on the screen based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI.
Question16: Tell Us Something About NBFCs?
Answer16: NBFCs are allowed to raise monies as deposits from the public and land monies through various instruments including leasing, hire purchase and bill discounting etc. these are licensed and supervised by the central bank prescribes that no NBFC can operate without a valid license from the Central bank Authority
Question17: What is banking Ombudsman scheme?
Answer17: The banking Ombudsman scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. the banking Ombudsman Scheme is introduced under section 35 A of banking regulation Act. 1949 by RBI with effert from 1995.
Question18: Who is The Current Governer of RBI?
Answer18: The Governor of the Reserve Bank of India (RBI) is the chief executive of India’s central bank and the ex-officio chairperson of its Central Board of Directors. Indian Rupee currency notes, issued by the RBI, bear the governor’s signature. Since its establishment in 1935 by the British colonial government, the RBI has been headed by 23 governors. The position of Governer is currently held by Raghuram Rajan, who took over from D. Subbarao on 4 September 2013.