21⟩ Tell me what is CP?
Commercial paper is a short term unsecured debt instrument.
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Commercial paper is a short term unsecured debt instrument.
The different types of loans offered by banks are:
a) Unsecured Personal Loan
b) Secured Personal Loan
c) Auto Loans
d) Mortgage Loans
e) Small business Loans
Home equity loan, also known as the second mortgage, enables you to borrow money against the value of equity in your home. For example, if the value of the home is $1, 50,000 and you have paid $50,000. The balance owed on your mortgage is $1, 00,000. The amount $50,000 is an equity, which is the difference of the actual value of the home and what you owe to the bank. Based on equity the lender will give you a loan. Usually, the applicant will get 85% of the loan on its equity, considering your income and credit score. In this case, you will get 85% of $50,000, which is $42,500.
The date on which the principal amount of a loan becomes due and payable is known as ‘Loan Maturity’. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425.
The repayment of the loan by instalment to cover principal amount with interest is known as ‘Amortization’.
Banks are computerized. Clerks are required to operate basic computer applications, including the banking program that the bank is using. The job might involve some walking to consult other staff members or manipulate documentation. Otherwise, the job is sedentary and requires care and patience.
Yes, bank will charge on ‘overdraft protection’ services but the charges will be applicable only when you start using the service.
Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.
Mainly the functions of RBI are classified as follows:
☛ Bank of Issue
☛ Banker to Government
☛ Bankers’ Bank and Lender of the Last Resort
☛ Controller of Credit
☛ Custodian of Foreign Reserves
☛ Supervisory functions
☛ Promotional functions
Shri Ramnath Pradeep appointed on Sept 1st 2010.
Initially the name was “Canara Banking Corporation (Udipi) Limited” later In 1939, the Bank’s name changed from Canara Banking Corporation (Udipi) Ltd., to “Canara Banking Corporation Ltd.,” with the motto-“ Sarve Janah Sukhino Bhavantu” which means “Prosperity to All ” .The second change in the name of the Bank occurred in 1972, from ‘Canara Banking Corporation Ltd.’ to ‘Corporation Bank Limited.’ and finally ‘Corporation Bank’ following its nationalization on 15th April,1980.
A cashier cheque issued by the bank on behalf of the customer and takes the guarantee for the payment. The payment is done from the bank’s own funds and signed by the cashier. The cashier cheque is issued when rapid settlement is necessary.
Tax levied on providing services in India, Rate is 12% + 0.36% for Education Cess.
Goods and Services Tax, desision on this tax is pending. GST is going to replace all indirect taxes.
I can see a better and properous career in banking industry.
Public Provident Fund is a tax saving investment for individuals.
Features :-
☛ Number of deposits per year - 1 to 12
☛ Minimum deposit - Rs 500
☛ Interest received is tax free
☛ Investment is exempted under section 80(c)
In ‘Bill Purchase’ the loan will be created for the full value of the draft and the interest will be recovered when the actual payment comes. For example, a ‘Sight draft’ is presented for which the loan is created for 100% of the draft value. The money is received after 7 days, and then the interest will be recovered for 7 days along with the principal amount.
Call option - An option which gives right to the Option Holder to buy a certain stock at specified time and specified date
Put option - An option which gives right to the Option Holder to sell a certain stock at specified time and specified date
Any deposit that is held by one bank for another bank is known as inter-bank deposit. The bank for which the deposit is being held is referred as the correspondent bank.
When repayment of the loan is less than the loans accumulated interest, then negative Amortization occurs. It will increase the loan amount instead of decreasing it. It is also known as ‘deferred interest’.