Exam Bite (Part-6)

• Full Form of IRR is Internal Rate of Return 
• Bad credit is a term used to describe a poor credit rating including an account in default. 
• Through Cross Currency Options, RBI has allowed Indian companies to hedge exchange rate risk associated with trade transactions. 
• Clearing Bank is the one which settles the debits and credits of the commercial banks. Even the cash balances are lesser; clearing bank facilitates banking operation of the commercial bank. 
• Insurance companies in India are regulated by IRDA. This agency’s headquarters are in Hyderabad, Telangana. 
• Mortage is a written constructive pledge of property that is used as security for the repayment of a loan. 
• Coins up to 50 paise were called ‘Small Coins’ and coins of rupee one and above are called as ‘Rupee Coins’. 
• Bancassurance refers to the distribution of insurance policies and insurance products of insurance companies which may be a life policies or non-life policies, by banks as corporate agents through their bank branches located in different parts of the country by charging a fee. 
• PJ Nayak committee was formed to review governance of Boards of banks in India. 
• EXIM (Exporters and Importers) bank of India was established in 1982. It facilitates financial assistance for exporters and importers to promote foreign trade of India. 
• FII – Foreign Institutional Investors – Investment in financial assets like bonds, mutual funds, stocks of a foreign company. This gives investors’ only ownership right not management right. 
• Currency notes and coins of one rupee and lower denominations are issued by the Ministry of Finance. 
• CASA Ratio is the ratio of deposits in the form of current and savings account to the total deposits. Normally expressed in percentage. High CASA ratio is more advantageous. 
• Travellers’ cheque is a prepaid instrument issued by a bank, which can be substitute of cash. 
• CRISIL –Credit Rating Information Services of India Limited founded in 1987, headquarters in Mumbai. It is the largest credit rating agency in India. Its majority shareholder is Standard and Poor’s.