Banking Terms — Set 6

Correct Answer: C. Export-Import Bank

EXIM Bank stands for Export-Import Bank of India. It is the premier export finance institution of the country established in 1982. Its primary role is to provide financial assistance to exporters and importers.

Correct Answer: A. Over The Counter Exchange of India

OTCEI stands for Over The Counter Exchange of India. It was set up to provide small and medium companies an avenue to raise capital. It was the first screen-based nationwide stock exchange in India.

Correct Answer: B. Value Added Tax

VAT stands for Value Added Tax. It is an indirect tax that is paid at each stage of the production or distribution of a product or service. In India, VAT was largely replaced by the Goods and Services Tax (GST) in 2017.

Correct Answer: C. London Interbank Offered Rate

LIBOR stands for London Interbank Offered Rate. It was a benchmark interest rate at which global banks lend to one another in the international interbank market. Most financial jurisdictions have now transitioned away from LIBOR to other risk-free rates.

Correct Answer: B. Fast Moving Consumer Goods

FMCG stands for Fast Moving Consumer Goods. These are products that are sold quickly and at a relatively low cost, such as packaged foods and toiletries. These products have a short shelf life because of high consumer demand.

Correct Answer: B. National Stock Exchange

NSE stands for the National Stock Exchange of India. It is a leading stock exchange in India, located in Mumbai. It was the first exchange in India to provide modern, fully automated electronic trading.

Correct Answer: B. Cash Reserve Ratio

CRR stands for Cash Reserve Ratio. It is the percentage of liquid cash that banks have to maintain with the central bank of the country. This tool is used to manage liquidity and control inflation in the economy.

Correct Answer: A. Society for Worldwide Interbank Financial Telecommunication

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is a global messaging network used by banks to securely send and receive financial transaction information. Over 11,000 institutions in 200+ countries use SWIFT.

Correct Answer: B. Real Time Gross Settlement

RTGS stands for Real Time Gross Settlement. It is an electronic fund transfer system where transactions are settled individually and in real time. The minimum amount for RTGS transfer is ₹2 lakh. It is managed by the RBI.

Correct Answer: A. National Electronic Funds Transfer

NEFT stands for National Electronic Funds Transfer. Unlike RTGS which settles in real time, NEFT processes transactions in batches at fixed intervals. There is no minimum transfer amount for NEFT.