Explore topic-wise InterviewSolutions in Current Affairs.

The view that banks should operate with the objective of social progress.

Electronic banking is a method by which all transactions can be carried out through net banking and tele banking. Any time banking, anywhere banking, net banking and mobile banking are part of electronic banking. The assistance of the bank employees is not required.

• Customers can send money and bills can be paid anywhere in the world from home. 
• Save time 
• Low service charge 

In includes industries that produce a finished, usable product are involved in construction. This sector takes the out put of primary sector and manufactures finished goods.

Credit control is a major weapon of the monetory policy used to control the demand and supply of money in the economy. 

Income Tax and Corporation Tax.

Aggregate Supply is the total supply of all final goods and services by all the producers or sellers of the economy at given price level.

The cost of production which incurred on fixed factors of production, is known as fixed cost. It does not change with the change in output. 

For example - Rent, wages to permanent employees, interest, Premium of insurance etc.

By accepting deposits from the public.

(i) Increase in money supply due to deficit financing. 

(ii) Increase in demand due to Increase in credit-facilities.

Visible import and export of material goods.

Recurring deposit.

Monetary policy is a programme of action undertaken by the central bank to control & Regulate the demand. For supply of money with the public & the flow of credit – to achieving predetermined macro economic goals.

There is inverse relationship between price and demand.Expansion of demand with fall in price & contraction of demand with rise in Price.

Rent is any Payment to an owner or factor of production for use of the factor. Such as amount payable to the landlord for the use of land. 

Core banking is a banking facility under which all the branches of the banks are brought under a central server to enable transactions from one bank to another. It operates with the help of internet. Making use of this facility, an individual can send money from his account to his friend’s account in another place. Facilities like ATM, debit card, credit card, net banking, telebanking, mobile banking, etc. are brought under one umbrella through core banking. This made bank transactions easy.

Today banking, services are easily available through any banks with the computerization of banks and the ATM facility. Doing all banking transactions through net banking and telebanking is called electronic banking. Banking at any time and banking at any place, net banking, and mobile banking are part of electronic banking. It does not need the support of employees and banking instruments. Only bank account and net banking facility are needed for this.

Customers can send money anywhere in the world and remit the bills from home itself without stepping into a bank. Banking activities can be completed within a short time. Not expensive as the service charge for this is very less.

Features of fixed deposit : 

Fixed deposits are ideal for depositing money for a specific period of time. The interest is high. Interest rate is calculated on the basis of the time period for which the money is deposited. Deposits could be withdrawn after maturity. If the money is withdrawn only after the completion of the specific period of time, then the specified interest rate will be provided. If the amount is withdrawn before the maturity of deposits, then the interest rate will be lower.

(d) All the above

(i) SCR which are around 38.5% was bought down 28% 

(ii) CRR was also bought down 14% to 10%. 

(a) Per capita income

(d) All of these

Banking Sector Reforms in India began in 1991.

Without keeping money in hand, all monetary requirements can be fulfilled by using cards. Such cards are called plasting money.

In perfect competitive market, price is determined by demand and supply forces which is termed as 'Price determination by industry under perfect competition.' i.e., in perfect competition, price is determined by the industry.  

In perfect competition, price determined by the industry is accepted by the every firm.i.e. in perfect competition, every firm in the industry is price-taker.

In perfect competition, the individual firm may not alter the price, determined by the industry. Firm can only adjust the quantity produced at the price taken from the industry.

In current deposit scheme, money can be deposited and withdrawn many times in a day without any restrictions. Normally, traders and industrialists deposit money in this scheme. The banks do not offer any interest to this deposit because banks do not get the time to make use of the amount in this deposit profitably.

Life Insurance Company : 

Life insurance companies are institutions that provide security to life, health and property of individuals. 

Eg : Life Insurance Corporation of India.

Non – Life insurance companies : 

These are institutions that provide security to individuals from the loss incurred due to accident and natural calamity. 

Eg : General insurance companies.

• A scheme that helps the public to deposit their savings. 
• It offers low rate of interest. 
• Depositors can withdraw money from the deposit subject to restrictions. 

Option : (b). Payment banks.

The objective of microfinance is ‘to provide financial services to common people including small lendings. It helps to promote saving habits and self employment. activities among the poor. This helps members to avail themselves of loans without providing any collaterals. Kudumbasree and Self Help Group for men are examples for this.

Aims of microfinance:

1. Promotes saving habits. 

2. Helps to improve the standard of living of the poor. 

3. Helps to mobilize fund from individuals and use it for collective economic activities. 

4. Individual abilities are used for the benefit of the group. 

5. Gives loans to members when required. 

6. Sets up small enterprises.

Option : (b).Bharatiya Mahila Bank

Overdraft is a type of loan given by commercial banks to customers. This facility enables a customer to withdraw money over and above the credit balance. Banks give this facility to permanent and reliable customers. This facility is provided to those who have current account deposit.

Option : (d).MUDRA Bank

Kerala State Financial Enterprises (KSFE) 

Services 

• Operate chitties 
• Provide Housing loan 
• Provide Gold loan 
• Provide loans for Hire purchase

SBI Mutual Fund LIC Mutual Fund ICICI Mutual Fund HDFC Mutual Fund

• Unit Trust of India 
• SBI Mutual Fund 

Mutual fund is a mode of investment. Common man is not always able to invest in share market directly. Mutual fund helps investors to overcome this constraint. Money is mobilized from various investors and is invested in share markets, debentures, etc. The profit or loss resulting from this is distributed among the investors.

Unit Trust of India Life Insurance Corporation Mutual Fund

i) SBI mutual fund 

ii) Unit Trust df India

The proportional value of gold and foreign exchange is kept as reserve for issuing notes of a particular amount.

• Distribution of printed currency by RBI. 
• Through credit creation by RBI. 

• RBI accepts deposits from central and state governments and sanctions loans to them. 
• It also renders other banking services to them. 

• Mail transfer : Mail transfer is a system in which money can be transferred from any part of the world to one’s own account or to someone else’s account. 
• Telegraphic transfer : The mechanism which can transfer money through a message. It is faster than mail transfer. 

• Small farmers 
• Agricultural labourers 
• Small entrepreneurs 

The banks which accept deposits from public and lend money for commercial, industrial and agricultural purposes subject to certain conditions are called commercial banks. They are the oldest banks and have many branches. These banks play a decisive role in the financial activities of a country.

The interest on loan is more than the interest on deposit.

• Reserve Bank of India is called Banker’s bank. 
• RBI advises and assists all banks in their operations. 
• RBI acts as the last resort to all banks in their financial matters. 

a. Printing of currency 

b. Controlling of credit 

c. Banker to Government