Which of the following statements is/are not correct in respect of Forex Reserves in India?
1) They are external assets in the form of Gold, Special Drawing Rights of World Bank and Foreign Currency Assets accumulated.
2) Department of Economic Affairs, Ministry of Finance functions as the custodian and manager of these forex reserves.
3) A rise in forex reserve may help in strengthening the rupee against dollar.
a) 1 & 2
b) 2 & 3
c) 1&3
d) All of the above
1) They are external assets in the form of Gold, Special Drawing Rights of World Bank and Foreign Currency Assets accumulated.
2) Department of Economic Affairs, Ministry of Finance functions as the custodian and manager of these forex reserves.
3) A rise in forex reserve may help in strengthening the rupee against dollar.
a) 1 & 2
b) 2 & 3
c) 1&3
d) All of the above
Free trade agreement (FTA):
a) Covers only goods and not services.
b) Eliminates all the trade barriers for all the goods between the member countries c) can be signed between two countries or many countries. d) None is true.
a) Covers only goods and not services.
b) Eliminates all the trade barriers for all the goods between the member countries c) can be signed between two countries or many countries. d) None is true.
Anonymous Quiz
12%
a
53%
b
27%
c
8%
d
Which of the following is/are true about Asian Development Bank?
a) Only regional countries are eligible for its membership.
b) India is one of the founding members of this regional development bank.
a) Only regional countries are eligible for its membership.
b) India is one of the founding members of this regional development bank.
Anonymous Quiz
39%
a
61%
b
Assertion (A): In WTO, no other members can challenge the decision of a member to make use of provisions available to developing countries.
Reason (R): WTO Members announce for themselves whether they are developed or developing countries.
Reason (R): WTO Members announce for themselves whether they are developed or developing countries.
Anonymous Quiz
39%
Both A and R are true and R is the correct explanation of A.
33%
A is true but R is false.
15%
AisfalsebutRistrue.
12%
Both A and R are false.
Which of the following is incorrect regarding International Development Association (IDA) ?
a) It is a part of World Bank that aims to reduce poverty by providing loans and grants.
b) India is one among the 76 borrowing countries that receives IDA‘s resources.
c) It complements the World Bank‘s original lending arm—the International Bank for Reconstruction and Development (IBRD).
d) None is incorrect.
a) It is a part of World Bank that aims to reduce poverty by providing loans and grants.
b) India is one among the 76 borrowing countries that receives IDA‘s resources.
c) It complements the World Bank‘s original lending arm—the International Bank for Reconstruction and Development (IBRD).
d) None is incorrect.
Which of the following transactions are made in capital account of a country? 1. Issuing of external bonds
2. Exports and Imports
3. External lending or borrowings a) 1 only b) 3 only c) 1&3 d) 1,2&3
2. Exports and Imports
3. External lending or borrowings a) 1 only b) 3 only c) 1&3 d) 1,2&3
Anonymous Quiz
10%
a
22%
b
40%
c
29%
d
The World Economic Outlook (WEO), published biannually and partly updated two times a year, is a survey conducted and published by
a) The World Bank
b) The IMF c)The World Economic Forum d)The Organization for Economic Co-operation and Development
a) The World Bank
b) The IMF c)The World Economic Forum d)The Organization for Economic Co-operation and Development
Anonymous Quiz
17%
a
27%
b
38%
c
18%
d
Which of the following statements is/are true w.r.t. EXIM Bank?
1. It is a specialized financial institution wholly owned by Government of India.
2. It was established in 1982 under the Export-Import Bank of India Act 1981.
3. It extend its Lines of Credit (LOCs) also to overseas financial institutions and to sovereign governments. a) 1 & 2
b) 2 & 3
c) 1&3
d) All of the above
1. It is a specialized financial institution wholly owned by Government of India.
2. It was established in 1982 under the Export-Import Bank of India Act 1981.
3. It extend its Lines of Credit (LOCs) also to overseas financial institutions and to sovereign governments. a) 1 & 2
b) 2 & 3
c) 1&3
d) All of the above
NIRVIK scheme pertains to:
a) Export Credit Insurance
b) Export Quality Assurance c) Setting up Export oriented units d) Incentivising export agents
a) Export Credit Insurance
b) Export Quality Assurance c) Setting up Export oriented units d) Incentivising export agents
Anonymous Quiz
18%
a
26%
b
36%
c
20%
d
Of which of the following international forums, India is not a member? a) G-20
b) IBSA
c) OECD d) BRICS
b) IBSA
c) OECD d) BRICS
Anonymous Quiz
16%
a
30%
b
43%
c
11%
d
Greetings From eTeam Info services Pvt. Ltd
eTeam Is Hiring For
🔺Category🔺
Associate HR
🔹Documentation(Onboarding Valuation)
🔹Preparation Of Offer Letter
Graduation:MBA(HR)
Work Experience: 1 Year Mandatory
Mark Your Resume At
ashwinip@eteaminc.com
nparveen@eteaminc.com
Regards,
Ashwini Prakash
Associate HR || Accenture HRCC
eTeam Proudly servicing workforce solutions in USA | Canada | EMEA | APAC
#workfromhome #staffing #recruitment #engineeringrecruitment #wfh #humanresources #career #jobsearch #freshers #helpinghand #recruitingnow #jobseeker #remotejobs #remotehiring #workfromhomeopportunity
eTeam Is Hiring For
🔺Category🔺
Associate HR
🔹Documentation(Onboarding Valuation)
🔹Preparation Of Offer Letter
Graduation:MBA(HR)
Work Experience: 1 Year Mandatory
Mark Your Resume At
ashwinip@eteaminc.com
nparveen@eteaminc.com
Regards,
Ashwini Prakash
Associate HR || Accenture HRCC
eTeam Proudly servicing workforce solutions in USA | Canada | EMEA | APAC
#workfromhome #staffing #recruitment #engineeringrecruitment #wfh #humanresources #career #jobsearch #freshers #helpinghand #recruitingnow #jobseeker #remotejobs #remotehiring #workfromhomeopportunity
Greetings Aspirants!!
NTA-JRF/NET Admit Card Not Yet Released
Fake Messages Are Scattered Around The Groups
Do Ignore!!
Post Notification Will Update On The Same
NTA-JRF/NET Admit Card Not Yet Released
Fake Messages Are Scattered Around The Groups
Do Ignore!!
Post Notification Will Update On The Same
💿Non Performing Assets (NPA)💿
NPAs refer to loans which are in risk of default. Reserve Bank of India (RBI) defines NPAs as below:
AN ASSET, INCLUDING A LEASED ASSET, BECOMES NON-PERFORMING WHEN IT CEASES TO GENERATE INCOME FOR THE BANK.
As per guidelines issued by the RBI, banks classify an account as NPA only if the interest due and charged on that account during any quarter is not serviced fully within 90 days from the end of the quarter.
Conditions to become NPA
An asset becomes NPA when it ceases to generate income for the bank –
➖Term Loan – Interest and/or installment of principal amount remain overdue for more than 90 days
➖Overdraft / Cash Credit – The account remains ‘out of order’ for 90 days
➖Bill – The bill remains overdue for more than 90 days in the case of bills purchased and discounted
➖Short duration crops – The installment of principal or interest remains overdue for 2 crop seasons
➖Long duration crops – The installment of principal or interest remains overdue for 1 crop season
➖Securitisation transaction – The amount of liquidity facility outstanding for more than 90 days
➖Derivative transaction – The overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for 90 days from the specified due date for payment.
Basis of Classification of Non Performing Asset (NPA)
Banks are required to classify NPAs into the following 3 categories based on how long do they remain non-performing.
The three categories are – Substandard Assets, Doubtful Assets and Loss Assets.
♦️ Substandard Assets – If an account remains as NPA for a period less than or equal to 12 months
♦️ Doubtful Assets – An asset would be classified as doubtful if it has remained in the substandard category for 12 months.
♦️ Loss Asset – A loss Asset is one where loss has been identified by the bank’s internal or external auditors or upon an RBI inspection.
Example of NPA
We suppose that a party was disbursed a loan on January 1, 2010. Its due date is June 1, 2010. But the party does not make a payment. So
♦️ It will be an Standard Asset from January 1, 2010 till June 1, 2010 (Due Date)
♦️ It will be a Special Mention Account From June 2, 2010 till August 29, 2010 (90 days)
♦️ It will be Sub-standard from August 30, 2010 till August 29, 2011
♦️ It will be doubtful from August 30, 2011 till August 29, 2012
♦️ It may remain doubtful Asset for a period of 3 years, beginning from 12 months of being an NPA, but once the auditors identify it as a loss, it will be assigned a loss asset; however, the period may be anything above 3 years
NPAs refer to loans which are in risk of default. Reserve Bank of India (RBI) defines NPAs as below:
AN ASSET, INCLUDING A LEASED ASSET, BECOMES NON-PERFORMING WHEN IT CEASES TO GENERATE INCOME FOR THE BANK.
As per guidelines issued by the RBI, banks classify an account as NPA only if the interest due and charged on that account during any quarter is not serviced fully within 90 days from the end of the quarter.
Conditions to become NPA
An asset becomes NPA when it ceases to generate income for the bank –
➖Term Loan – Interest and/or installment of principal amount remain overdue for more than 90 days
➖Overdraft / Cash Credit – The account remains ‘out of order’ for 90 days
➖Bill – The bill remains overdue for more than 90 days in the case of bills purchased and discounted
➖Short duration crops – The installment of principal or interest remains overdue for 2 crop seasons
➖Long duration crops – The installment of principal or interest remains overdue for 1 crop season
➖Securitisation transaction – The amount of liquidity facility outstanding for more than 90 days
➖Derivative transaction – The overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for 90 days from the specified due date for payment.
Basis of Classification of Non Performing Asset (NPA)
Banks are required to classify NPAs into the following 3 categories based on how long do they remain non-performing.
The three categories are – Substandard Assets, Doubtful Assets and Loss Assets.
♦️ Substandard Assets – If an account remains as NPA for a period less than or equal to 12 months
♦️ Doubtful Assets – An asset would be classified as doubtful if it has remained in the substandard category for 12 months.
♦️ Loss Asset – A loss Asset is one where loss has been identified by the bank’s internal or external auditors or upon an RBI inspection.
Example of NPA
We suppose that a party was disbursed a loan on January 1, 2010. Its due date is June 1, 2010. But the party does not make a payment. So
♦️ It will be an Standard Asset from January 1, 2010 till June 1, 2010 (Due Date)
♦️ It will be a Special Mention Account From June 2, 2010 till August 29, 2010 (90 days)
♦️ It will be Sub-standard from August 30, 2010 till August 29, 2011
♦️ It will be doubtful from August 30, 2011 till August 29, 2012
♦️ It may remain doubtful Asset for a period of 3 years, beginning from 12 months of being an NPA, but once the auditors identify it as a loss, it will be assigned a loss asset; however, the period may be anything above 3 years
Reverse Ratio : Banks keep aside a certain percentage of cash reserves or RBI approved assets. There are two types of reserve ratio:
Cash Reserve Ratio (CRR) : Banks set aside this portion in cash with the RBI. The bank cannot lend this amount to anyone or earn a profit or interest rate on CRR.
Statutory Liquidity Ratio (SLR) : This portion is set aside by the banks in the form of liquid assets such as gold or RBI approved securities such as government securities. Banks earn interest on these securities, but it’s very low.
Open Market Operations : The RBI buys and sells government securities in the open market, also referred to as Open Market Operations to control the supply of money.
When the RBI sells government securities, the liquidity is sucked from the market, and buying securities provides liquidity, which helps to control inflation. The main aim of the open market operation is to keep a check on temporary liquidity mismatches in the market, which happens due to the inflow of foreign capital.
Qualitative tools :These tools affect the money supply of a specific sector of the economy.
Margin requirements : The RBI mentions a certain margin against collateral. When the RBI raises the margin requirements, customers will be able to borrow less and vice-versa.
Selective credit control : Through this method, RBI avoids lending to speculative businesses or selective industries.
Moral suasion : With the help of this tool, the central bank persuades other banks to keep money in government securities and not in any other sectors.
Cash Reserve Ratio (CRR) : Banks set aside this portion in cash with the RBI. The bank cannot lend this amount to anyone or earn a profit or interest rate on CRR.
Statutory Liquidity Ratio (SLR) : This portion is set aside by the banks in the form of liquid assets such as gold or RBI approved securities such as government securities. Banks earn interest on these securities, but it’s very low.
Open Market Operations : The RBI buys and sells government securities in the open market, also referred to as Open Market Operations to control the supply of money.
When the RBI sells government securities, the liquidity is sucked from the market, and buying securities provides liquidity, which helps to control inflation. The main aim of the open market operation is to keep a check on temporary liquidity mismatches in the market, which happens due to the inflow of foreign capital.
Qualitative tools :These tools affect the money supply of a specific sector of the economy.
Margin requirements : The RBI mentions a certain margin against collateral. When the RBI raises the margin requirements, customers will be able to borrow less and vice-versa.
Selective credit control : Through this method, RBI avoids lending to speculative businesses or selective industries.
Moral suasion : With the help of this tool, the central bank persuades other banks to keep money in government securities and not in any other sectors.