Banking Test (Commerce)

 The charge created in favour of the banker by the customer in case of movable goods handed over to the banker is called pledge.

The Reserve Bank of India (RBI) was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.

Flexi deposits combine the liquidity of a savings account with the higher interest rates of a term (fixed) deposit.

 Acquiring, owning, possessing or transferring any money for crime related purposes directly or indirectly is known as money laundering

A derivative is a financial contract whose value is dependent upon or derived from an underlying asset, such as stocks, bonds, or commodities.

Standard & Poor's (S&P) is a well-known American financial services company and a global credit rating agency. CRISIL and ICRA are Indian rating agencies.

Non-Banking Financial Companies (NBFCs) include a wide range of institutions like housing finance companies, investment companies, and hire purchase/leasing firms.

Retail banking products are services offered to individual consumers, which include credit cards, home loans, personal loans, and bancassurance (insurance products sold by banks).

A Recurring Deposit (RD) allows an investor to deposit a fixed amount every month, accumulating interest over time until maturity.

The Cash Reserve Ratio (CRR) is the percentage of total deposits that banks must keep as cash reserves with the RBI. Increasing CRR reduces the money available for lending, thus reducing liquidity.

Cross-selling is the practice of selling additional products or services to existing customers to increase the bank's business and deepen the customer relationship.

ICICI Bank is widely recognized in India for its transition from a development financial institution to a universal bank. It was the first to offer a wide range of financial services under one roof.

Factoring is a financial service where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount to obtain immediate cash. Forfaiting is similar but typically involves export trade receivables.

A mortgage is a legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan.

Under the MSME Development Act, a micro enterprise is defined as one where the investment in plant and machinery does not exceed Rs. 25 lakhs. Note that these definitions have been updated in recent years, but this reflects the traditional classification.

SENSEX is the benchmark index of the Bombay Stock Exchange (BSE), which is located in Mumbai. It consists of 30 well-established, financially sound companies.

Hypothecation is a charge against movable property where the possession remains with the borrower. In contrast, a pledge involves the transfer of possession to the lender.

Opening a bank account typically requires identity verification (photograph), a reference or introduction, and an initial deposit. Therefore, all listed items are standard requirements.

Statutory Liquidity Ratio (SLR) is maintained by banks in the form of cash, gold, or approved securities. All the listed items are valid components of SLR.

Gilt-edged securities are high-grade investment bonds issued by governments. They are considered very safe investments.

The Securities and Exchange Board of India (SEBI) was established by the Central Government of India through the SEBI Act, 1992.

Venture capital is a form of private equity financing provided by firms to startups and small businesses that are believed to have long-term growth potential.

Blue chip stocks are shares of large, well-established, and financially sound companies that have operated for many years and have a history of reliable performance.

Under traditional MSME classifications, a small-scale industry was defined by an investment in plant and machinery up to Rs. 1 crore.

Micro credit is the extension of very small loans to those in poverty, designed to support entrepreneurship and alleviate poverty among weaker sections of society.