Sunday, 7 July 2013

corporation bank interview questions for clerks

corporation bank interview questions for clerks :
1)Where was the Head Quarters of Corporation Bank located ?
A) Mangalore in karnataka state

2)Who is the Chairman of Corporation Bank ?
A) Shri Ramnath Pradeep appointed on Sept 1st 2010.

3) When did the bank came into existence ?
A) Established on 12th march 1906 at the temple town of UDIPI in karnataka state.

4) What was the coporation bank initial name?
A) Initially the name was “Canara Banking Corporation (Udipi) Limited” later In 1939, the Bank’s name changed from Canara Banking Corporation (Udipi) Ltd., to “Canara Banking Corporation Ltd.,” with the motto-“ Sarve Janah Sukhino Bhavantu” which means “Prosperity to All ” .The second change in the name of the Bank occurred in 1972, from ‘Canara Banking Corporation Ltd.’ to ‘Corporation Bank Limited.’ and finally ‘Corporation Bank’ following its nationalization on 15th April,1980.

5) When was nationalised corporation bank?
A) 15th April, 1980

6) Corporation bank “Corporate Vision”?
A) ” The Most Preferred Bank with Global Standards ”

7) could you tell about Network of Corporation bank?
A) The Bank with a Network of 1176 Branches,1159 ATM centers,and 1408 Grameen vikas kendras as on 30th Sept 2010 .with 10 million coustomers across india.

8) Why do you choose clerk job as your career ?
A)You just say, “Job Security and Job in Corporation bank is a privilege and it is a service to nation”

9)What do you think of the responsibilities / duties of a clerk job in the banking sector ?

10)How do you prove yourself as a successful employee ?

11)Tell us about yourself ?
A)Introduce yourself , your education, your current job,etc in a short and sweet manner.

12)Tell us about your schooling background ?

13)Tell us about your academic career ?

14)What are your hobbies ?

15)What are the primary functions of a commercial bank ?
A)The primary functions of a commercial bank include:
a) accepting deposits; and
b) granting loans and advances

16)What are the salient features of Indian Banking Sector ?

17)Can you explain the reforms that taken place in the Indian banking industry ?
A) 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.

18)What are the functions of Reserve Bank of India ?
A)Mainly the functions of RBI are classified as follows:
Bank of Issue
Banker to Government
Bankers’ Bank and Lender of the Last Resort
Controller of Credit
Custodian of Foreign Reserves
Supervisory functions
Promotional functions

19)Tell some of the Qualitative methods used by RBI for credit control in the country ?

20)Tell some of the Quantitative methods used by RBI for credit control in the country ?

21)What is Bank rate ?
A) 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.

22)What is Cash Reserve Ratio – CRR?
A)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.

23)What is Statutory Liquidity Ratio – SLR ?
A)Statutory Liquidity Ratio 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.

24)What is Repo rate ?
A)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.

25)Can you explain the terms National bank, Scheduled bank, Commercial bank, Cooperative bank, Private bank, Foreign bank ?

26)What Is Inflation?
A)Inflation is increase in price of products & decrease in value of money.

27) Difference between Repo rate and Bank rate?
A)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

28))Important Terms?
SLR – Statutory liquidity ratio
CRR - Cash reserve ratio
Repo rate - It is the rate at which RBI lends money to Banks.
Reverse Repo Rate – It is the rate at which Banks park their funds with RBI
Bank Rate – It is the rate at which RBI lends money to Banks.
Call money rate - It is the rate of interest charged by the banks for temporary borrows among banks Ledger

Tender Money – Currency issued by RBI Optional Money – Cheques, DDs, Bankers Cheques
Plastic Money – Credit card, Debit card Credit card is ready made overdraft in e-form for buying goods and services by the card holder within specified limits and according to terms and conditions of the issuer Bank without having any account.Debit card is e-Cheque which can be used within the limits of the credit in the account associated with it for financial transactions.
Core Banking – Networking of Banks for providing any where any time Banking is called Core Banking.
Merchant Bank provides capital to firms in the form of shares rather than money.
Investment Banks tend to provide investment to firms.
Corporate Banking looks after the needs of big firms, companies, business entities.
Business Banking looks after needs of medium level business firms, entities, individuals.
Retail banking focuses to provide services to individuals.
Private banking focuses to provide services to high net worth individuals.
Lead Banking focuses on providing all type of financial services.
Narrow Banking focuses on a particular sector like Mortgage, Auto Finance etc.

29)What is a bank?
A) 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.



Compulsory Modules

Compulsory Modules (all 3)
ü     1. English Comprehension
ü     2. Quantitative Ability
ü    3. Reasoning and Logical Ability
Ø Optional Modules (1 or more)
ü     1. Computer Programming Principles and Application
ü     2. Computer Fundamentals
ü     3. Electronics and Semiconductor
1. English Comprehension
ü  Synonyms/Antonyms/Word Meaning (Vocabulary)
ü  Complete the Sentence (Grammar)
ü  Spot error/Correct sentence (Grammar/sentence construction)
ü  Sentence Ordering (Comprehension skills)
ü  Questions based on passage (Comprehension skills)
2. Quantitative Ability
ü  Basic Math Understanding and Algebra: Decimals, fractions, powers,   HCF, LCM,   Solving equations, etc.
ü  Word Problems
ü  Understanding of Logarithms and exponents
ü Permutation and Combination, Probability
3. Reasoning and Logical Ability
ü  Analogical Reasoning: Analogy and Classification questions
ü  Deductive Logic: Statement-Conclusion, Statement-Assumption, Data-sufficiency type, Syllogisms, etc.
ü  Pattern Recognition: Coding and Decoding Questions, Alphabet Test
ü  Composition of Complex relations: Blood Relation, Direction  Understanding, Logical Word Sequence
ü  Reasoning Puzzles, Theme Detection
1. Computer Programming Principles and Application
This test is based on no particular programming language. The test is completely language independent and tests the programming and algorithm development concepts of the candidate.
The topics include:
1. Structure and constructs of Computer Programs
ü  Programming flow, Procedures, Functions and Arguments, Methods
ü  Data-types, how data is stored in computers, input/output, manipulation, methods of referencing and assessing data (including pointers).
ü  Iteration, decision-making, recursions
ü  Algorithm Complexity: Space and time Complexity, Asymptotic Notation
ü  Compilation, Linking and Execution; debugging, kinds of errors.
2. Data-structures and Basics Algorithms
ü  Data Storage Methods: Linked lists, Arrays, Queues, Stacks, Trees, Heaps, Hash tables, graphs; Stress on which data structure to use for a given application
ü  Data retrieval, Insertion of new data, merging of data from two data structures
ü  Data search and sorting, Methods of array sorting and trade-off
3. Object Oriented Programming Concepts
ü  Classes, objects and methods
ü  Data Encapsulation, Data hiding, Inheritance
ü  Polymorphism, Overloading, Abstraction
2. Computer Fundamentals
ü  Basic Hardware Usage, Maintenance and Organization
ü  Operating System Usage
ü  Basic Software and Internet
3. Electronics and Semiconductor
ü  Basics only
Model Papers
ENGLISH COMPREHENSION
In the following question select the word which is OPPOSITE in the meaning of the given word.
Q1. INDISCREET
a. reliable
b. honest
c. prudent
d. stupid
Q2. SOLICITUDE
a. insouciance
b. ingenuity
c. propriety
d. austerity
Q3. In the sentence there is a bold word or phrase. One of the words or phrases given in the options conveys almost the same meaning as the bold word or phrase in the sentence. Select that option which is nearest in meaning.
It is preposterous on your part to look for a job without first completing your education.
a. Wise
b. Imperative
c. Advisable
d. Most admirable
e. Very absurd
In the following questiones, fill in the blank space.
Q4. The success that he has gained, though striking enough, does not, however, commensurate . . . . the efforts made by him.
a. About
b. From
c. With
d. Beside
e. Over
Q5. Vinod took his meals after he . . . .
a. Had completed his work
b. Had been completing his work
c. Was completing his work
d. Had been completed his work
e. Had got completed his work
In the following questions, select the word or phrase that is similar in meaning to the given word.
Q6. Nonchalance
a. Neutrality
b. Indifference
c. All-knowing
d. Ignorance
e. Untimeliness
Q7. Conceal
a. Hide
b. Seal
c. Ceiling
d. Horrifying
Q8. Read the sentence to find out whether there is any grammatical error in it. The error, if any, will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is ‘D’. (Ignore – the errors of punctuation,if any)
(A) The whole thing moves/ (B) around the concept of building a small dynamic/(C) organisation into a larger one./(D) No error.
a. (A)
b. (B)
c. (C )
d. (D)
Q9. In the question a part of the sentence is italicised. Alternatives to the italicised part is given which may improve the sentence. Choose the correct alternative. In case no improvement is needed. Option ‘D’ is the answer.
She gave most of her time to music.
a. spent
b. lent
c. devoted
d. No improvement
Q10. The given sentences when properly sequenced, form a coherent paragraph. Each sentence is labelled with a number. Choose the most logical order of sentences from among the four given choices to construct a coherent paragraph.
1. He was so busy with them that he did not get time to eat. 2. Thousands of people came to him and asked different types of questions. 3. No one cared to see that he had his food or rest that night. 4. Swami Vivekanand once stayed in a small village.
a. 2341
b. 3214
c. 4213
d. 4231
Answer the question based on the given passage
Management is a set of processes that can keep a complicated system of people and technology running smoothly. The most important aspects of management include planning, budgeting, organising, staffing, controlling, and problem-solving. Leadership is a set of processes that creates organisations in the first place or adapts them to significantly changing circumstances. Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles. This distinction is absolutely crucial for our purposes here: Successful transformation is 70 to 90 per cent leadership and only 10 to 30 percent management. Yet for historical reasons, many organisations today don’t have much leadership. And almost everyone thinks about the problem here as one of managing change. For most of this country, as we created thousands and thousands of large organisations for the first time in human history, we didn’t have enough good managers to keep all those bureaucracies functioning. So many companies and universities developed management programs and hundreds and thousands of people were encouraged to learn management on the job. And they did. But, people were taught little about leadership. To some degree, management was emphasised because it’s easier to teach than leadership. But even more so, management was the main item on the twentieth-century agenda because that’s what was needed. For every entrepreneur or business builder who was a leader, we needed hundreds of managers to run their ever-growing enterprises. Unfortunately for us today, this emphasis on management has often been institutionalised in corporate cultures that discourage employees from learning how to lead. Ironically, past success is usually the key ingredient in producing this outcome. The syndrome, as I have observed it on many occasions, goes like this: success creates some degree of marked dominance which in turn produces much growth. After a while keeping the ever-larger organisation under control becomes the primary challenge. So attention turns inward and managerial competencies are nurtured. With a strong emphasis on management but not leadership, bureaucracy and an inward focus takeover. But with continued success, the result mostly of market dominance, the problem often goes unaddressed and an unhealthy arrogance begins to evolve. All of these characteristics then make any transformation effort much more difficult. Arrogant managers can over-evaluate their current performance and competitive position, listen poorly and learn slowly. Inwardly focused employees can have difficulty seeing the very forces that present threats and opportunities. Bureaucratic cultures can smother those who want to respond to shifting conditions. And the lack of leadership leaves no force inside these organisations to break out of the morass.
Q11. Why did companies and universities develop programmes to prepare managers in such a large number?

a. (A) Companies and universities wanted to generate funds through these programmes
b. (B) The large number of organisations were created as they needed managers in good number
c. (C) Organisations did not want to spend their scarce resources in training managers
d. (D) Organisations wanted to create communication network through trained managers
Q12. How has the author defined management?

a. It is the process of adapting organisations to changing circumstances.
b. It is the system of aligning people with the direction it has taken.
c. It refers to creating a vision to help direct the change effectively.
d. Creating better performance through customer orientation.
Q13. What is the historical reason for many organisations not having leadership?

a. A view that leaders are born, they are not made
b. Leaders lack managerial skills and organisations need managers
c. Leaders are weak in carrying out traditional functions of management
d. Leaders allow too much complacency in organisations
Q14. Which of the following characteristics help organisations in their transformation efforts?

a. Emphasis on leadership but not management
b. A strong and dogmatic culture
c. Bureaucratic and inward looking approach
d. Failing to acknowledge the value of customers and shareholders
Q15. Which of the following is similar in meaning of the word ‘smother’ as used in the passage?

a. Suppress
b. Encourage
c. Instigate
d. Criticise
QUANTITATIVE ABILITY
Q1. In a kilometre race, if A gives B a 40 m start, A wins by 19 s. But if A gives B a 30 s start, B wins by 40 m. Find the time taken by B to run 5,000 m?

a. 150 s
b. 450 s
c. 750 s
d. 825 s
Q2. Pipe A takes 16 min to fill a tank. Pipes B and C, whose cross-sectional circumferences are in the ratio 2:3, fill another tank twice as big as the first. If A has a cross-sectional circumference that is one-third of C, how long will it take for B and C to fill the second tank? (Assume the rate at which water flows through a unit cross-sectional area is same for all the three pipes.)

a. 66/13
b. 40/13
c. 16/13
d. 32/13
Q3. Three consecutive whole numbers are such that the square of the middle number is greater than the product of the other two by 1. Find the middle number.

a. 6
b. 18
c. 12
d. All of these
Q4. The arithmetic mean of 2 numbers is 34 and their geometric mean is 16. One of the numbers will be

a. 4
b. 16
c. 18
d. 12
Q5. If x% of a is the same as y% of b, then z% of b is :

a. (xy/z)% of a
b. (yz/x)% of a
c. (xz/y)% of a
d. None of these
Q6. The letters of the word WOMAN are written in all possible orders and these words are written out as in a dictionary ,then the rank of the word ‘WOMAN’ is

a. 117
b. 120
c. 118
d. 119
Q7. What least number must be subtracted from 9400 to get a number exactly divisible by 65?

a. 40
b. 20
c. 80
d. none of these
Q8. If 2505 / 0.5 = 5010 then 25.05 / 0.5 = ?

a. 5.010
b. 50.10
c. 501.0
d. None of these
Q9. Which pair of rational numbers lie between 1/5 and 2/5 -

a. 262/1000, 275/1000
b. 362/1000, 562/1000
c. 451/1000, 552/1000
d. 121/1000,131/1000
Q10. What is the value of the following expression: 2 log10 5 + log10 4 ?

a. 2
b. 2.5
c. 3
d. None of these
Q11. If x increases linearly, how will a-x behave (a>1) ?

a. Increase linearly
b. Decrease linearly
c. Increase exponentially
d. Decrease exponentially
Q12. What is the probability of getting the sum 5 in two throws of the dice?

a. 1/12                    b. 1/5                  c. 1/9                                       d. None of these
LOGICAL ABILITY
Q1. The question shows a pair of words in which the first is related to the second in some way. It is followed by a single word which bears a similar relation to one of the given alternatives. Find the correct alternative to complete the analogy.
Melt:Liquid::Freeze: ?
a. Ice
b. Condense
c. Solid
d. Crystal
Q2. Fill in the blankGuilt is to Past as Hope is to ……
a. Present
b. Future
c. Today
d. Despair
e. Hopeless

Q3. From the given choices select the odd man out:

a. Bird
b. Kite
c. Crow
d. Pigeon
e. Sparrow
Q4. Find the missing pattern
BOQD : ERTG :: ANPC : ?
a. DQSF
b. FSHU
c. SHFU
d. DSQF
Q5. Find the missing number
5 : 24 :: 8 : ?
a. 65
b. 63
c. 62
d. 64
Q6. From the given choices select the odd man out
a. DFHEG
b. TWXUV
c. OQSPR
d. JLNKM
Q7. If HARD is coded as 1357 and SOFT is coded as 2468, what will 21448 stand for?

a. SHAFT
b. SHORT
c. SHOOT
d. SHART
Q8. Find the next number in the series
1, 6, 13, 22, 33, ……
a. 44
b. 45
c. 46
d. 47
Q9. The question contains some statements followed by some conclusions. Decide which of the given conclusions logically follow from the given statements, disregarding commonly known facts.
Statements:
I) All tomatoes are red.
II) All grapes are tomatoes.
Conclusions:
I) All grapes are red.
II) Some Tomatoes are grapes.
a. Only conclusion I follows.
b. Only conclusion II follows.
c. Neither I nor II follows
d. Both I and II follow.
e. Either I or II follows
Q9. Old woman’s son is my daughter’s uncle, then what relation has the old woman to me ?

a. Sister
b. Mother
c. Grandmother
d. Mother – in – law
Q10. Ramu was facing East.He walked 4 km forward and then after turning to his right walked 6 km. Again he turned to his right and walked 7 km. After this he turned back.Which direction was he facing at the time?

a. East
b. North
c. South
d. West
e. North-East
Q11. Raman is not wearing purple and Aman is not wearing black.Raman and Sahil wear different colours.Avinash alone wears green.What is Sahil’s colour, if all four of them are wearing different colours.

a. Green
b. Black
c. Purple
d. Can’t Say
Q12. The question is followed by two arguments numbered I and II. You have to decide which of the arguments is a strong argument and which is a weak argument.
Statement :
Should a total ban be put on trapping wild animals?
Arguments :
I. Yes, Trappers are making a lot of money.
II. No, bans on hunting and trapping are not effective.
a. Only argument I is strong.
b. Only argument II is strong.
c. Either I or II is strong.
d. Neither I nor II is strong.
e. Both I and II are strong
Q13. The question contains a statement followed by two Assumptions I and II. Find out which assumption(s) is implicit.
Statements:
Vitamin E tablets improve circulation, keep your complexion in glowing condition.
Assumptions :
I. People like glowing complexion.
II. Complexion becomes dull in the absence of circulation.
a. Only assumption I is implicit
b. Only assumption II is implicit
c. Both assumption I and II are implicit.
d. Neither assumption I nor II is implicit
Q14. Study the statement(s) and the conclusions and select the correct option.
Statement :
No country is absolutely self – dependent these days.
Conclusions :
I. It is imposible to grow and produce all that a country needs.
II. Countrymen in general have become lazy.
a. Only Conclusion I follows
b. Only Conclusion II follows
c. Both the conclusion I and II follow
d. Either conclusion I or II follows
e. Neither conclusion I nor II follows
Q15. In the question a statement is followed by some courses of action . A course of action is a step or administrative decisions to be taken for improvement, follow-up, or further action in regard to the problem, policy, etc.You have to assume everything in the statement to be true and then decide which of the given suggested course(s) of action logically follows for pursuing.

Statement:
‘The World Bank has approved a $ 300 million loan to finance a project to construct coal ports by Madras Port Trusts.
Courses of Action :
I. India should take financial help from other international financial institutions to develop such ports in other places.
II. India should not seek any help from the international financial institutions.
a. Only I follows
b. Only II follows
c. Either I or II follows
d. Neither I nor II follows
e. Both I and II follow.
(Optional module)
COMPUTER PROGRAMMING PRINCIPLES AND APPLICATIONS
Q1. A 8-bit signed integer has the following range:

a. 0 to 255
b. -128 to 127
c. -255 to 254
d. 0 to 509
Q2. What will be the output of the following code statements?
integer x = 34.54, y = 20, z = -5
print ( y > 50 AND z > 10 or x > 30 )
a. 0
b. 1
c. -1
d. 10
Q3. Pankaj makes a program to print the product of cubes of the first 10 whole numbers. She writes the following program:
integer x = 0 // statement 1
integer sum = 0 // statement 2
while ( x < 10 ) // statement 3
{
sum = x*x*x // statement 4
x = x + 1 // statement 5
}
print sum // statement 6
Is her program correct? If not, which statement will you modify to correct it?
a. No error, the program is correct.
b. Statement 1
c. Statement 4
d. statement 6
Q4. I have a problem to solve which takes as input a number n. The problem has a property that given the solution for (n-1), I can easily solve the problem for n. Which programming technique will I use to solve such a problem?
a. Iteration
b. Decision-making
c. Object Oriented Programming
d. Recursion
Q5. Given:
integer x = 40, y = 35, z = 20, w = 10
Comment about the output of the following two statements:
print x * y / z – w
print x * y / (z – w)

a. Differ by 80
b. Same
c. Differ by 50
d. Differ by 160
Q6. Data and function in which area of a class are directly accessible outside the class?
a. Public
b. Private
c. Protected
d. None of these
Q7. Here is an infix notation: ((A+B)*C-(D-E))^(F+G) Choose the correct postfix notation of the above from the given options.
a. AB+CD*E–FG+^
b. AB+C*DE–FG+^
c. AB+C*DE-FG-+^
d. A+BC*DE-FG-+^
Q8. If the depth of a tree is 3 levels, then what is the size of the Tree?

a. 2
b. 4
c. 6
d. 8
Q9. One of the following options is a form of access used to add and remove nodes from a queue.

a. LIFO
b. FIFO
c. Both LIFO and FIFO
d. None of these
Q10. What is the time complexity of adding three matrices of size NXN cell-by-cell?

a. O(N)
b. O(N^2)
c. O(N^3)
d. None of these



Canara bank clerk interview questions:


Canara bank clerk interview questions:

1)Where was the Head Quarters of Canara Bank located ?
A)Canara Bank, Head Office, Bangalore

2)Who is the Chairman of Canara Bank ?
A) Mr S Raman

3) When did the bank came into existence ?
A) July 1906, at Mangalore

4) What was the Canara bank initial name?
A) Initially the name was ‘Canara Bank Hindu Permanent Fund’Later changed as ‘Canara Bank Ltd.’ in 1910 and became Canara Bank in 1969 after nationalization.

5) When was nationalised Canara bank?
A) Nationalization in the year 1969

6) Canara bank Line ?
A) “Global Bank with Best Practices”

7) could you tell about Network of Canara bank?
A) Canara bank with 3057 branches and over 2000 ATMs, catering to all segments of an ever growing clientele base of over 37.5 million.

8)Why do you choose clerk job as your career ?
A)You just say, “Job Security and Job in Canara bank is a privilege and it is a service to nation”

9)What do you think of the responsibilities / duties of a clerk job in the banking sector ?

10)How do you prove yourself as a successful employee ?

11)Tell us about yourself ?
A)Introduce yourself , your education, your current job,etc in a short and sweet manner.

12)Tell us about your schooling background ?

13)Tell us about your academic career ?

14)What are your hobbies ?

15)What are the primary functions of a commercial bank ?
A)The primary functions of a commercial bank include:
a) accepting deposits; and
b) granting loans and advances

16)What are the salient features of Indian Banking Sector ?

17)Can you explain the reforms that taken place in the Indian banking industry ?
A) 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.

18)What are the functions of Reserve Bank of India ?
A)Mainly the functions of RBI are classified as follows:
Bank of Issue
Banker to Government
Bankers’ Bank and Lender of the Last Resort
Controller of Credit
Custodian of Foreign Reserves
Supervisory functions
Promotional functions

19)Tell some of the Qualitative methods used by RBI for credit control in the country ?

20)Tell some of the Quantitative methods used by RBI for credit control in the country ?

21)What is Bank rate ?
A) 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.

22)What is Cash Reserve Ratio – CRR?
A)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.

23)What is Statutory Liquidity Ratio – SLR ?
A)Statutory Liquidity Ratio 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.

24)What is Repo rate ?
A)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.

25)Can you explain the terms National bank, Scheduled bank, Commercial bank, Cooperative bank, Private bank, Foreign bank ?

26)What Is Inflation?
A)Inflation is increase in price of products & decrease in value of money.

27) Difference between Repo rate and Bank rate?
A)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

28))Important Terms?
SLR – Statutory liquidity ratio
CRR – Cash reserve ratio
Repo rate – It is the rate at which RBI lends money to Banks.
Reverse Repo Rate – It is the rate at which Banks park their funds with RBI
Bank Rate – It is the rate at which RBI lends money to Banks.
Call money rate – It is the rate of interest charged by the banks for temporary borrows among banks Ledger
Tender Money – Currency issued by RBI Optional Money – Cheques, DDs, Bankers Cheques
Plastic Money – Credit card, Debit card Credit card is ready made overdraft in e-form for buying goods and services by the card holder within specified limits and according to terms and conditions of the issuer Bank without having any account. Debit card is e-Cheque which can be used within the limits of the credit in the account associated with it for financial transactions.
Core Banking – Networking of Banks for providing any where any time Banking is called Core Banking.
Merchant Bank provides capital to firms in the form of shares rather than money.
Investment Banks tend to provide investment to firms.
Corporate Banking looks after the needs of big firms, companies, business entities.
Business Banking looks after needs of medium level business firms, entities, individuals.
Retail banking focuses to provide services to individuals.
Private banking focuses to provide services to high net worth individuals.
Lead Banking focuses on providing all type of financial services.
Narrow Banking focuses on a particular sector like Mortgage, Auto Finance etc.

29)What is a bank?
A) 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.