Shareholic

Monday, September 8, 2014

Born to win


Sitting on my chair, I was highly immersed in formulating the various strategies for the day to day activities. The responsibilities entrusted to the Director of one Rural Self Employment Training Institute differ from that of other educational institutions or administrative offices.
As a director, while I was just thinking of recruiting suitable trainees for the forthcoming training programs in regard to “Mushroom cultivation” and many other programs I heard somebody knocking the door of my cabin.
Without taking my eyes from the working sheets on my desk I told, “Yes -  come in”.
“Sir, I am Edward”.
Immediately on seeing the news brief released in various Tamil dailies by the Institute, for recruitment of trainees for the training program on – “Mobile phones servicing and repairing”, I started receiving a large number of representations in person, by post and over phone from aspiring trainees.
Amidst the crowd, Edward a medium built personality around 35 years’ old peeped himself inside my cabin and started listening to my conditions.
“Sir, I am Edward and I require training on mobile servicing and repairing”.
“We offer various training courses for the educated unemployed and financially deprived persons including housewives towards upgradation of their skills in specified areas and we motivate them and infuse confidence in them towards becoming an entrepreneur. I require people who had completed tenth standard and above to be recruited as trainees for this training program. I admit persons who had completed tenth standard and above only. Do you have the requisite qualifications?”
Once my introductory speech was over, he started telling.
“Yes sir”.
“In case you had not completed your tenth standard, I regret that I could not continue further in this connection”.
Suddenly, I could sense his face becoming pale.
He started telling, “I had completed my tenth standard seventeen years back. I am Engineering graduate with triple “Es”.”
“Friend, in such a case, I hope you can better get employed as an engineer in any government department or a private organization. Normally persons with higher qualifications do not pay much attention in the training program and I do not require trainees having lesser interest”
He could not take back his eyes from me. He started becoming nervous for some time and I could find that he was afraid of not getting an admission for the training program. He wanted to reply immediately; however,  appeared struggling for words and  I thought that he might cry at any time.
However, he started telling, “Sir, I am the only boy in my family and I have three sisters. My father is a farmer earning very meager income. I could complete my engineering degree after a long financial struggle. My family members struggled for my studies because I was the only child in my family who paid much attention to the studies. They imagined that I could earn at least Rs. 15000 on completion of my graduation. But in reality I was not so. I could have walked into more than 200 organizations throughout the state. When I fould that I could not get a job as an Engineer even after five years of my completion of engineering graduation, I offered to work myself for a meager salary of Rs. 2000 per month in a company as a sales representative for selling their products. That too not lasted for more than six months. Since the company could not continue their business, I was compelled to go for the job hunt again. I had almost forgetten that I am engineering graduate. All my attention was towards getting a job – whatever it may be in order to take care of my old parents and to get my sisters married soon. I hope that I can start a mobile servicing unit once you permit me to attend the training course offered by you since I find that your way of conducting the training programs are reported to be good and I could also find that the training is offered free of cost”.
Without any hesitation, I admitted him to the program and he was one among the bright trainees who took keen interest in learning the entire skills of servicing mobile phones.
I recollected all my memories of the past and wearing a bright smile on my face, I asked him.
“How are you and what can I do for you, Edward?”
“Sir, with the help of your Rural Self Employment Training Institute by offering me a training on “Servicing of mobile phones.” I found that I had grown to a great extent both mentally and emotionally. With your guidance I had started a mobile servicing unit in my area a month back and on an average I am earning an amount of Rs. 600 a day. I could also remember, as to how, I had struggled for Rs. 2000 per month five years back. I am really thankful to you and your Institute for having promoted me as an entrepreneur and I have great hopes that sooner or later I will be one among the top entrepreneurs in the area”.
He gave me a leaflet which outlined the services offered by his servicing unit and he also invited me to pay a visit to his shop.
I saw him move out of my cabin briskly and confidently. I could recollect the words uttered by Paul Solomon:
“I believe you come into the world to accomplish something and not something small or insignificant. That is not worthy of you. You came here to make a major contribution to life in this planet”.



Sunday, May 18, 2014

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-013



01.   Treasury bills are one among the various financial instruments initially sold by___________
To raise funds
a)    Commercial banks; b) development banks; c) the government; d) corporations’ e) representatives belonging to state governments

02.   There are different money market instruments for raising funds from the market and the money lent for 15 days or more in the inter bank market is called as:
a)    Call money; b) notice money; c) term money; d) commercial paper; e) all the above

03.   According to you, the money lent for one day is called as
a)    Call money; b) notice money; c) term money; d) commercial paper; e) none of the above

04.   The specified interest rate on a fixed maturity security fixed at the time of issue is called as:
a)    Market rate of interest; b) call rate; c) repo rate; d) coupon rate; e) discount rate

05.   The money market in our country has been divided into organized sector and unorganized sector and which among the following do not fall under the unorganized sector category?
a)    Reserve Bank of India; b) All commercial banks including SBI group, nationalized banks, foreign banks; c) Life Insurance Corporation of India; d) Indigenous banks; e) General Insurance Corporation of India

06.   The money lent for more than one day; however, not more than fifteen days is called as:
a)    Call money; b) notice money; c) term money; d) commercial paper; e) none of the above

07.   A _________________is an institution which accepts deposits, makes business loans and other related services
a)    Development bank; b) savings bank; c) commercial bank; d) indigenous bank; e) local area bank

08.   _________________are those financial institutions engaged in the promotion and development of industry, agriculture and other key sectors
a)    Commercial banks; b) development banks; c) Reserve Bank of India; d) all the above; e) none of the above

09.   Money lenders and sahukars called as___________________collect deposits from the general public and grant loans to the needy persons out of their own funds as well as from deposits.
a)    Local area banks; b) Indigenous banks; c) commercial banks; d) development banks; e) none of the above

10.   Which among the following are the various functions of exchange banks?
a)    Remitting money from one country to another country; b) discounting of foreign bills; c) buying and selling gold and silver; d) helping import and export trade; e) all the above

11.   The main objective of _________________ is to give loans to consumers for purchasing the durables like motor car, television set, washing machine, furniture etc and the borrowers have to repay the loans in easy instalments
a)    Commercial banks; b) consumer banks; c) development banks; d) special banks; e) none of the above

12.   __________________attracts high rates of interest and longer the period of deposit higher is the rate of interest and it is also called as the time liability of the bank
a)    Fixed deposit; b) time deposit; c) term deposit; d) all the above; e) all the above

13.   A depositor can deposit his funds in ______________________any number of times he likes and can also withdraw the same any number of times he wishes
a)    Savings bank; b) current account; c) recurring deposit; d) both (a) and (b) as mentioned above; e) none of the above

14.   A depositor can deposit his funds in ___________________any number of times as he likes and can also withdraw the same any number of times he likes and as at present he earns no interest for the amount kept in the account
a)    Savings bank; b) current account; c) recurring deposit; d) fixed deposit; e) none of the above

15.   On this account, restrictions are imposed by the bank on the amount to be withdrawn by the depositor and the bank pays interest on this account although the rate of interest is less than the rate of interest payable in fixed deposit
a)    Recurring deposit; b) savings bank; c) current account; d) fixed deposit; e) none of the above
16.   _________________refers to that market wherein short term monetary assets are bought and sold and according to Reserve Bank of India, it is the centre of dealings mainly of short term character in monetary assets
a)    Money market; b) capital market; c) financial market; d) commercial market; e) short term market

17.   _________________is a mechanism that allows people to buy and trade financial securities such as stocks. Bonds, commodities and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis.
a)    Commodity markets; b) financial markets; c) capital market; d) all the above; e) none of the above

18.   When it comes to unorganized sector, which among the following is not true?
a)    Indigenous bankers; b) money lenders; c) chit funds; d) nidhis; e) cooperative bank

19.   Financial instruments provide short term and they include
a)    Commercial paper; b) hundies; c) certificates of deposits; d) promissory notes; e) all the above

20.    Banks borrow in this money market for the following purposes:
a)    To fill the gaps in temporary mismatches in funds
b)    To meet the cash reserve ratio and statutory reserve ratio – the mandatory requirements as stipulated by RBI
c)    To meet sudden demand for funds arising out of larger outflows
d)    All the above; e) none of the above

21.   When it comes to organized sector, which among the following is not true?
a)    Reserve Bank of India; b) Public sector commercial banks; c) private sector commercial banks; d) money lenders; e) cooperative banks

22.   Which among the following are called as financial instruments?
a)    Call money market; b) bill market; c) bank loans; d) all the above; e) none of the above

23.   When it comes to public sector commercial banks, which among the following is not true?
a)    State Bank of India; b) Nationalised banks; c) Regional Rural banks; d) Foreign banks; e) SBI associate banks

24.   Which among the following are participants in call/notice money market?
a)    Banks; b) primary dealers; c) development finance institutions; d) insurance companies; e) all the above

25.   ___________________refers to the market for government and semi government securities, backed by the RBI
a)    Gilt edged market; b) industrial securities market; c) primary market; d) secondary market; e) none of the above

26.   The industries securities market refers to the market which deals in:
a)    Equities; b) debentures; c) treasury bills; d) commercial paper; e) only (a) and (b) as above

27.   Which among the following is called as stock exchange?
a)    Gilt edged market; b) primary market; c) secondary market; d) old issues market; e) both © and (d) as above

28.   The initial public offer is connected to which among the following:
a)    Primary market; b) secondary market; c) old issues market; d) gilt edged securities market; e) none of the above

29.   Which among the following are the basic objectives of Securities and Exchange Board of India?
a)    Protecting the interests of investors in securities
b)    Promoting the development of securities market
c)     Regulating the securities market
d)    All the above; e) none of the above

30.   What are the main functions of Securities and Exchange Board of India?
a)    Regulating the business of the stock market and other securities market
b)    Promoting and regulating the self regulatory organizations
c)     Prohibiting fraudulent and unfair trade practices in securities market
d)    Promoting awareness among investors and training of intermediaries about safety of the market

e)    All the above


ANSWERS:
1-C
2-C
3-A
4-D
5-D
6-B
7-C
8-B
9-B
10-E
11-B
12-D
13-D
14-B
15-B
16-A
17-B
18-E
19-E
20-D
21-D
22-D
23-D
24-E
25-A
26-E
27-E
28-A
29-D
30-E

Sunday, October 20, 2013

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-012





01.   The products offered by commercial banks in India can be classified into four major groups:
a)    Fund based services; b) non fund based services; c) value added services; d) internet banking services; e) all the above

02.   Which among the following does not belong to the internet banking services provided by commercial banks?
a)    Payment gateway services; b) real time gross settlement; c) supply chain management; d) corporate internet banking; e) supply chain partners

03.   Banks in the country provide preshipment finance in the form of _____________both in rupees as well as in foreign currencies to assist the exporters for manufacturing or packing the goods for export from the country
a)    Export packing credit; b) export bill negotiation; c) export LC confirmation; d) export bill purchase and discounting; e) rupee advance against export bills

04.   When it comes to the requirements of importers from the commercial banks in the country which among the following is not true?
a)    Import letters of credit; b) direct import bills; c) import collection bill services; d) arranging for buyer’s and supplier’s credit; e) supplier’s credit

05.   _________________is a type of negotiable (transferable) financial instrument that is traded on a local stock exchange of a country; however, represents a security, usually in the form of equity that is issued by a foreign publicly listed company
a)    Depository receipt; b) commercial paper; c) certificate of deposit; d) all the above; e) none of the above

06.   The value of the loan amount under retail lending normally range between
a)    Rs. 20000 to Rs. 1 crore; b) Rs 1 crore to Rs. 10 crore; c) Rs. 10 crore to Rs 100 crore; d) More than Rs. 100 crores; e) none of the above

07.   According to the information available it has been the experience of banks in the country in recent years under retail lending that the following loans had the least level of impairment (defaults)
a)    Home loan portfolio; b) consumer loan portfolio; c) vehicle loan portfolio; d) personal loan portfolio; e) none of the above

08.   Overseas depository bank – means which among the following:
a)    A bank authorized by the issuing company to issue global depository receipts against issue of foreign currency convertible bonds or ordinary shares of the issuing company
b)    A bank authorized by the government to issue global depository receipts against issue of foreign currency convertible bonds or ordinary shares of the issuing company
c)     A bank authorized by the issuing company to issue global depository receipts against receipt of a foreign currency
d)    A bank where deposits in foreign currencies can be made
e)    None of the above

09.   When it comes to the term called as “OTCEI”, what do you mean by “E”?
a)    Exchange; b) Environment; c) Environment; d) Entitlement; e) Enlistment

10.   ______________is the ownership interest in a company of holders of its common and preferred stocks
a)    Debenture; b) bond; c) equity; d) treasury bill; e)none of the above

11.   _____________________is a type of preference share where the dividend payable on the same accumulates, if not paid and after a specified date, these shares will be converted into equity capital of the company

a)    Preference shares; b) cumulative preference shares; c) cumulative convertible preference shares; d) participating preference shares; e) none of the above

12.   A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to as ­­­­­­­­­_____________bond
a)    Coupon bond; b) zero coupon bond; c) convertible bond; d) conversion bond; e) none of the above

13.   Commercial papers are money market instruments issued normally for a tenure of ___________days
a)    Thirty days; b) ninety days; c) sixty days; d) 120 days; e) all the above

14.   ________________________are those institutional investors who are generally perceived to possess an expertise and the financial muscle to evaluate and invest in the capital markets
a)    Qualified Institutional buyers; b) share transfer agents; c) certified institutional investors; d) certified institutional buyers; e) none of the above

15.   Red herring prospectus is a prospectus
a)    Which is issued in red colour; b) which contains some clauses in red colour; c) which does not have details of either price or number of shares being offered or the amount of issue; d) all the above; e) none of the above

16.   The issue of new securities to existing shareholders at ratio to those already held is known as
a)    Preference shares; b) rights shares; c) bonus shares; d) cumulative preference shares; e) none of the above

17.   According to you, the main functions of SEBI are
a)    Protecting the interests of investors in securities; b) promoting the development of the securities market; c) regulating the securities market; d) all the above; e) none of the above

18.   When it comes to the following term namely- IPO, what do you mean by “P”?
a)    Provisions; b) Public; c) Private; d) Prudent; e) Pension

19.   The _____________are the specified intermediaries who are required to display due diligence and ensure that all the requirements of DIP are complied with, while submitting the draft offer document to Securities and Exchange Board of India
a)    Merchant bankers; b) equity players; c) share issuers; d) securities dealers; e) none of the above

20.   ______________This refers to the right of certain preference shareholders to participate in profits, after a specified fixed dividend contracted for is paid
a)    Preference shares; b) cumulative preference shares; c) participating preference shares; d) preference shares; e) none of the above
21.   _________________are bonds issued by a company bearing a fixed rate of interest usually payable half yearly, on specific dates and the principal amount repayable on a particular date on redemption
a)    Security receipts; b) Government securities; c) debentures; d) treasury bills; e) commercial paper

22.   ____________________refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.
a)    Security market; b) secondary market; c) stock market; d) Bond market; e) debenture market

23.   What do you mean by “C” in the term called as FMCG?
a)    Customer; b) consumer; c) creditor; d) country; e) none of the above

24.   The short term bearer (upto ninetyone days) bearer discount security, issued by the government (through the Reserve Bank of India) as a means of meeting its cash requirements is called as
a)    Treasury bills; b) commercial paper; c) coupon bonds; d) zero coupon bonds; e) convertible bonds

25.   When it comes to the following term – FPO, what do you mean by “F”?
a)    Further; b) facility; c) favour; d) future; e) none of the above

26.   In the ______________, the securities like shares and debentures are offered to the public subscription for the purpose of raising capital or fund:
a)    Secondary market; b) primary market; c) share market; d) debenture market; e) none of the above

27.   What do you mean by BRLM?
a)    Book running lead managers; b) Bank running lead managers; c) Bank running liability managers; d) Bank running lead management; e) none of the above

28.   In the term called as AMFI, what do you mean by “F”?
a)    Mutual; b) money; c) Managing; d) Miscellaneous; e) none of the above

29.   As per SEBI guidelines, any entity/person engaged in the marketing and selling of mutual fund products is required to pass a certification test and obtain a registration number from whom the following?
a)    Securities and Exchange Board of India; b) Association of Mutual Funds in India; c) National Stock Exchange; d) OTCEI; e) Bombay stock exchange

30.   The aim of balanced funds is to provide

a)    Growth (capital appreciation) b) regular income; c) both growth and regular income; d) no such scheme; e) none of the above

ANSWERS:
1-E
2-B
3-A
4-E
5-A
6-A
7-A
8-A
9-A
10-C
11-C
12-C
13-B
14-A
15-C
16-B
17-D
18-B
19-A
20-C
21-C
22-B
23-B
24-A
25-A
26-B
27-A
28-A
29-B
30-C