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BANK QUIZ
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What is meant by Fiscal
Policy?
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Fiscal Policy is a part
of a Government’s economic policy which deals with taxation, expenditure,
borrowing, and the management of public debt in the economy. It primarily
concerns itself with the flow of funds in the economy.
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What
is a Hot Money?
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‘Hot Money‘ is the flow
of funds (or capital) from one country to another in order to earn a
short-term profit on interest rate differences and/or anticipated exchange
rate shifts. Hot Money can move very quickly in and out of markets,
potentially leading to market instability.
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What
is Soft Currency?
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A currency with a value
that fluctuates as a result of the country’s political or economic
uncertainty is called Soft Currency. As a result of the of this currency’s
instability, foreign exchange dealers tend to avoid it.
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What
is Hard Currency?
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A currency, usually from
a highly industrialized country, that is widely accepted around the world as
a form of payment for goods and services is called Hard Currency.
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A hard currency is
expected to remain relatively stable through a short period of time, and to
be highly liquid in the FOREX market.
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What
is meant by Security?
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Security refers to a
share, bond or Government stock that can be bought and sold, usually on the
stock exchange or on a secondary market. The company or entity that issues
the security is known as the issuer.
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Security
is divided into two types.
Debt Security
Equity
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A debt security is a type
of security that represents money that is borrowed that must be repaid, with
terms that define the amount borrowed, interest rate and maturity/renewal
date.
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Equities represent
ownership interest held by shareholders in a corporation, such as a stock.
Unlike holders of debt securities who generally receive only interest and the
repayment of the principal, holders of equity securities are able to profit
from capital gains.
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What
is meant by Prime Lending Rate (PLR)?
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Prime Lending Rate is the
rate of interest at which bank gives loan to its most reliable customers.
Generally a bank’s best customers consist of large corporations. It is also
known as Prime Interest Rate.
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What
is Monopoly?
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Monopoly refers to a
market structure where there is only one seller who controls the entire
market and no substitute of that product is available in the market.
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What
is Monopsony?
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Monopsony is also termed
as ‘Buyer’s Monopoly‘. It means there is only one buyer of the product in the
market.
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What
is meant by Autarchy?
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Autarchy refers to a
country which is self sufficient and does not require any kind of imports
from other countries to meet the needs of the people.
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What
is meant by Buoyancy?
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When
the Government fails to check inflation, it raises the income tax as well as
corporate tax to generate revenue. Such a tax is called as Buoyancy. It
concerns with the revenue from taxation in the period of inflation.
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