Exam Bite (Part-3)

1. CPI stands for Consumer Price Index. Inflation is measured using CPI. The percentage change in this index over a period of time gives the amount of inflation over that specific period, i.e. the increase in prices of a representative basket of goods consumed.
2. The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government.
3.  Headquarters of Corporation bank is in Mangalore and its tagline is "A premier public sector bank"
4. Government budget is an annual statement, showing the item-wise estimation of receipts & expenditure during a fiscal year.
5. Second Time Nationalization of 6 banks was conducted in 1980.
6. Bank of Bombay , Bank of Madras and Bank of Bengal formed the Imperial Bank of India in 1921.
7. When RBI came into existence on 1 April 1935 it was Privately Owned. In 1949 it was nationalised.
8. Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.
9. Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company's insurance products to its clients.
10. Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.
11. Term insurance is life insurance policy which offers death benefit to the insured in case of unforeseen circumstances. However there is no survival,benefit if he outlives the policy term.
12. The highest denomination note of Rs. 10,000 was printed first time by RBI in 1938.
13. Soiled notes are the notes which becomes dirty due to usage and it also include a two piece note pasted together.
14. Prime Lending Rate is the rate at which banks lend to their best (prime) customers. It is usually less than normal interest rate.
15. "CIBIL" stands for Credit Information Bureau India Limited, now known as TransUnion CIBIL Limited. It is India's first Credit Information Company(CIC). CIBIL collects and maintains records of an individual's payments pertaining to loans and credit cards.