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MINISTRY OF FINANCE & PLANNING

The most important Ministry of our country's administrative system. It is responsible for taxation, financial legislation, financial institutions, capital markets, Centre-state finances and preparing and presenting the Union Budget taking into account the planning commission reports and suggestions and the Finance Commission recommendations. It is a huge task of planning the financial administration of our country involving multi million crores of rupees.
This Ministry is headed by Arun Jaitley  as Cabinet Minister and assisted by Nirmala Seetharaman  as the Minister of State for Finance. This Ministry has the following departments to take care of the financial administration:
1.Department of Economic Affairs - which looks after Banks, Insurance Companies, Mints, Government Security Press and Paper Mills, Budget etc.,
2.Department of Expenditure.
3.Department of Revenue under which comes the Income Tax and Central Board of Direct Taxes.
4.Department of Disinvestments.
5.Department of Financial Services.
Q1. When was the Planning Commission set up?
March 1950
Q2. Which country's concept of planning is adopted in our planning system?
USSR.
Q3. Who is the ex-officio Chairman of the Planning Commission?
Prime Minister.
Q4. The Composition of the Planning Commission is...........?
Chairman (PM), Deputy Chairman, Minister of State for Planning, 8 members, Secretary and a Secretariate.
Q5. Who is the Deputy Chairman of the Planning Commission?
AS OF 1.10.2014 VACANT  - on Cabinet Minister rank and facilities.
Q6. Who was the first Chairman and Deputy Chairman of the Planning Commission?
Chairman - Pandit Jawaharlal Nehru; Deputy Chairman - Gulzarilal Nanda.
Q7. What are the three major wings of the Planning Commission?
1. National Planning Council; 2. National Development Council; 3. State Planning Commissions.
Q8. On how many yearly basis, the planning is made?
5 years.
Q9. From which year the Planning period commenced and what are all the five year plans so far?
I. 1951-52 1955-56
II 1956-57 1960-61
III 1961-62 1965-66
IV 1968-69 1973-74
V 1974-75 1978-79
VI 1980-1985
VII 1986-1990
VIII 1992-1997
IX 1998-2002
X 2002-2007
XI 2007-2012
XII 2012-2017
Q10. What were the Plan Holiday periods and for what reasons?
1966-67 to 1967-68 due to war with Pakistan and for other reasons. However, the periods were covered with Annual Plans. 1990-91 to 1992 - due to political changes and for economic adjustments.
Q11. Which five year plan had the objective of "Garibi Hatao"?
Fifth.
Q12. Which five year plan ended one year before its planned expiry?
Fifth.
Q13. Which Five Year Plan defined the "Poverty Line"?
6th Five Year Plan.
Q14. How is "Poverty Line" defined?
It is defined and decided on the basis of nutritional intake standards. The people living below the barest desirable nutritional standards of daily calorie intake of 2400 calories per person in rural areas and 2100 calories in urban areas are said to be living below the poverty line. It is normally computed in terms of money, that is, per capita per person per month. This keeps changing every year.
Q15. Who was the Chief Planner of the first two fiver years Plans?
Mr. Mahalanobis.
Q16. What is a Finance Commission and what are its functions?
Article 280 provides for the appointment of a Finance Commission, with a Chairman and four other members. The main function of the Commission is to advise or recommend to the President the distribution of the distributable taxes between the centre and the states. It is the basis on which grants are made out of the union revenues. The Commission will also look into and advise on any other matter of finance referred to it in order to establish a sound financial position. The first such Commission was appointed in 1951 to cover the period 1952-1957.
Q17. The Finance Commission is appointed for a period of?
Five years (Normally).The first Chairman of the Finance Commission was K.C.Neogi - February 1953 to September 1957.
Q18. List the Chairmen of the Finance Commissions so far?
Sl Name Appointment Period Covered
. 1. K.C.Neogi February 1953 1952-1957
2. K. Santhanam September 1957 1957-1962
3. K.K.Chanda December 1961 1962-1966
4. Dr.P.V.Rajamannar September 1965 1966-1969
5. Mahavir Thyagi November 1969 1969-1974
6. Brahmananda Reddy December 1973 1974-1979
7. J.M.Shellet October 1978 1979-1984
8. Y.B.Chavan October 1983 1984-1989
9. N.K.P.Salve October 1988 1989-1995
10. K.C.Pant June 1993 1995-2000
11. A.N.Khusro July 1998 2000-2005
12. Dr.C.Rangarajan October 2002 2005-2010
13. Vijay L. Kelkar November 2007 2010-2015
14 Dr.Y.V.Reddy January 2013 2015-2017 
15.  Nand Kishore Singh November 2017 ......
13th & 14th FINANCE COMMISSION REPORT:

13th FINANCE COMMISSION REPORT:
This reports deals with recommendations for financial adjustments to be made during the period 2010-2015. The report was submitted on 25.2.2010 to the President by the Chairman Dr.Vijay Kelkar. Following are the salient features Of the recommendations, to be implemented from April 2010.
1. Greater share for States in Central Tax proceeds despite the strains on Central revenues.

2. The Commission recommended that the share of the States be increased from 30.5 to 32%.

3. The Commission further recommended that the share of 32% should include the local bodies too.

4. Prescribed some specific grants for elementary education and other state specific needs.

5. Rs.30000 to 50000 Crores as part of compensation to states for proposed goods and services roll out.

14th FINANCE COMMISSION REPORT:  Headed by Y.V.Reddy made the following recommendations. 

  • The share of states in the net proceeds of the shareable Central taxes should be 42%.This is 10% higher than the recommendation of 13th Finance Commission.
  • Revenue deficit to be progressively reduced and eliminated.
  • Fiscal deficit to be reduced to 3% of the GDP by 2017–18.
  • The 14th Finance Commission is of the view that tax devolution should be the primary route for transfer of resources to the States.``compositional shift in transfers’’ – from grants to tax devolution.
  • Big jump in tax share: Compared with 2014-15, the total devolution to states in 2015-16 will increase by over 45%
  • In understanding the States’ needs, it has ignored the Plan and non-Plan distinctions
  • In recommending an horizontal distribution, it has used broad parameters – population (1971), changes in population since then, income distance, forest cover and area, among others.
  • It has recommended distribution of grants to States for local bodies using 2011 population data with weight of 90 per cent and area with weight of 10 per cent
  • Grants to States are divided into two
- One, grant to duly constituted gram panchayats
- Two, grant to duly constituted municipal bodies
  • And, it has divided grants into two parts
  • A basic grant, and a performance for gram panchayats and municipal bodies
  • The ratio of basic to performance grant is 90:10 for panchayats; and 80:20 for municipalities
  • The total grant recommended is Rs. 2,87,436 crore for a five-year period. Out of which, the grant to panchayats is Rs.2,00,292 crore. And, the reminder goes to municipalities
  • The Commission has significantly departed from previous commission vis-à-vis recommendation of the principles governing grants-in-aid to the States by the Centre
  • It has chosen to take the entire revenue expenditure for this purpose. Hence, it has decided to take into account a state’s entire revenue expenditure needs without making a distinction between plan and non-plan expenditure
  • The Commission is of the view that sharing pattern in respect to various Centrally-sponsored schemes need to change. It wants the States to share a greater fiscal responsibility for the implementation of such schemes. Eight centrally sponsored schemes (CSSes) will be delinked from support from the Centre; warious CSSes will now see a change in sharing pattern, with states sharing a higher fiscal responsibility.
  • There are recommendations on cooperative federalism, GST, fiscal consolidation road map, pricing of public utilities and PSUs.

 

CURRENCY, BUDGET

Q19. Who introduced the coin system in India?
Gupta Empire were the first to introduce gold coins during 390-550 AD.
Q20. Who introduced "Rupee" in India and it was made of what?
Sher Shah Suri, founder of Sur dynasty rule, introduced "Rupee" (Rupiah) around 1542 AD. It was a silver coin and weighed around 179 grams, replacing the gold coins.
Q21. Prior to the introduction of decimal system, what was the coin system in India?
It was paise, anna, and rupee. Under which, 12 paise made one anna, eight annas made half a rupee and 16 annas made one rupee. The anna had a quarter and half anna too.
Q22. When from the decimal system introduced in India, under which government provisions?
By the Indian Coinage Act of 1955, and with effect from 1.4.1957, the paise, anna and rupee was replaced by paise, also called "Naiye Paise" and Rupee. 100 paise making a rupee, with 50 and 25 paise coins. There was also coins like, 1,2,5,10 and 20 paise coins, which over the period have gone into disuse. As of 2011, even the 25 paise coin has come into disuse and have been withdrawn from circulation from 30th June 2011.
Q23. "Rupee" is a derivation from?
From 'Rupakam' of Sanskrit meaning silver coin.
Q24. When was paper currency introduced in India?
1882 - by the British.
Q25. What is currency?
A unit of exchange, facilitating transfer of goods and/or services.
Q26. What is a "Bank Note"?
A kind of negotiable instrument, a promissory note made by a bank to the bearer on demand, used as money, a legal tender.
Q27. What is "Money"?
A token/object exchangeable for its value for commodity and services.
Q28. What is a "Coin"?
A general term for any metallic object shaped in different forms. Some of them are made with certain monetary value exchangeable for commodity or services.
Q29. What is 'Exchange Rate"?
Also called "Foreign Exchange" or "Forex" or "FX" rate. It is the rate of exchange between two currencies, which specifies how much one currency is worth in terms of the other. For example, to get one US Dollar, one has to pay around 48 rupees ( it varies every day at the exchange ), which again faces upward and downward trend depending on the economy reflected on the market, which is almost a daily affair.
Q30. What is a 'Currency Band"?
A system of exchange rates by which a floating currency is backed by hard money.
Q31. What is "Exchange Rate Regime"?
It is the way a country manages its currency in relation to foreign currencies and the foreign exchange market. It is closely related to "monetary policy" and both are dependent on each other.
Q32. What is "Fixed Exchange Rate"?
Sometimes called a "Pegged Exchange Rate". It is a type of exchange rate regime, wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or, to another measure of value, like gold.
Q33. What is " Floating Exchange Rate"?
A type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the Foreign exchange market.
Q34. What is "Linked Exchange Rate"?
It is a type of exchange rate regime to link the exchange rate of a currency to another.
Q35. What is a "Foreign Exchange Market"?
It exists wherever one currency is traded to another, includes banks, multinational corporations, Governments and other authorized financial institutions.
Q36. Other than India, which are the countries having "Rupee" as its currency?
Pakistan, Sri Lanka, Nepal, Mauritius and Seychelles are all Rupees. Indonesia - Rupiah and Maldives - Rufiah.
Q37. What are the paper currency denominations issued in our country?
1,2,5,10,20,50,100, 500 and 1000 - 9 in all. Of these, 1,2, and 5 (and in course of time even 10) are now being replaced with coins for economical reasons.
Q38. By which regulations, paper currency were begun to be printed in India?
Paper Currency Act of 1861 of UK.
Q39. What were the series of paper currency issued in India by the British?
1. Victoria Portray Series - 10,20,50,100,1000.2. Goerge V Series -- 1923 - 5,10,50,100,1000,10000.
Q40. In India, who were the first to issue paper currencies?
1. Bank of Hindustan - 1770 - 1782.2. General Bank of Bengal & Bihar - 1773-1775 - established by Warren Hastings.3. Bengal Bank - 1784-1791).
Q41. When and which denomination currency was first issued by the Reserve Bank of India?
1938 - Five Rupee Note with King George VI portrait, followed by 10,100, 1000 and 10000 in June 1938.
Q42. When was the " Security Thread" mark introduced for the first time in Indian currencies?
Immediately after the WWII, when it was detected that the Japanese made very high quality forgery notes of Indian currency.
Q43. When and what was the first currency issued by Independent India?
Re.1/- in 1949 with Lion Capitol of Ashoka.
Q44. When was the Mahatma Gandhi series of currency issued for the first time?
1996
Q45. What is the arrangement in issue of coins and currencies?
1. Coins and Re.1/- paper currency are issued by the Government. Thus, the Re.1/- paper currency will have the signature of the Secretary, Ministry of Finance. Ofcourse, this currency is now slowly pulled out of circulation.
2. Other denomination notes are issued by the Reserve Bank and carries the signature of the Governor of the Reserve Bank of India.
Q46. What is the "Guarantee" given on the currencies and in how many languages?
" I promise to pay the bearer, the sum of ........... Rupees" signed by the authority concerned. It will be in English and Hindi.
Q47. In how many languages the denomination of the currency is mentioned?
15 languages.
Q48. What is the name for the units producing currencies, coins and cash value papers?
MINT - in simple, "The Government Security Press".
Q49. Where are all the Mints located?
Mumbai, Kolkatta, Hyderabad (AP), Noida (UP), Nasik (Maharashtra), Mysore (Karnataka), Dewas(Madhya Pradesh) Sabboni (WB) and Hoshangabad (M.P).
Q50. What are Cash Value Papers?
Postal Stamps, Postal Articles with denominations printed on it, Bonds, Stamp Papers (used for registration purposes) and Revenue Stamps etc.,
Q51. What are the metal combinations used for coins?
1. Pure Nickel 2. Cupro Nickel 3. Aluminium Bronze 4. Aluminium Magnesium 5. Bronze 6. Nickel Brass 7. Ferritic Stainless Steel.
Q52. What does "demonetization" mean?
Withdrawal of a specific denomination/s of currencies from circulation. It is normally done on a sudden basis with immediate effect to curb black money (unaccountable/unaccounted) holding.
Q53. Was there any occasion of demonetization in India/Independent India?
1.  12.01.1946  --  The first occasion of demonetization took place under the British rule,  of Rs.500/- ;  1000/- ;  5000/- ;  and 10,000/- ; notes. 
2.   16.01.1978 --   During the Janata Government rule of PM Morarji Desai (President Neelam Sanjiva Reddy)  currencies of 1000, 5000 and 10000 were demonetized.
3.   08.11. 2016 --  During the NDA Government rule of PM  Narendra Modi (President Pranab Mukherjee), currencies of 500 and 1000 were demonetized. 
Q54. What is " devaluation " of currency?
It is the practice of reducing the value of a currency in relation to a world market currency like US Dollars, Euro etc.,
Q55. Was there any occasion of "devaluation"?
1. June 1949: When India joined the International Monetary Fund and to meet the standards set by IMF, rupee was devalued by 30.5% during the period of Dr.John Mathias as Finance Minister.
2. June 1966: During the period of Sachindra Chaudhari as Finance Minister.
3. 1.7.1991 and 3.7.1991: During Dr.Manmohan Singh's period as Finance Minister.
Q56. When is the annual Union Budget is presented as a tradition?
At 5 PM on the last working day of February in the normal circumstances. There are occasions of deviation from the practice, as the Budeget for 2009-2010 was presented only in the first week of July 2009. In such circumstances, "demands for Grants" are made in advance to keep things moving. It is a case of deviation for political reasons.
Q57. Who as Finance Minister broke the practice of presenting the Union Budget at 5 PM (in the evening)?
Yashwant Sinha (BJP). He presented the 1999-2000 budget in the forenoon.
Q58. Union Budget is printed at?
At the press located at the basement of the North Block of Parliament.
Q59. Who is the only Finance Minister to present the Union Budget on his birth day?
Morarji Desai on 29th February (also his birth day) in 1964 and 1968.
Q60. List the Finance Ministers of India?
Sl Name From To
1. Liaquat Ali Khan 1946 1947(interim govt)
2. R.K. Shanmugham Chetty 1947 1949
3. John Mathai 1949 1951
4. C.D.Deshmukh 1951 1957
5. T.T.Krishnamachari 1957 1958
6. Jawaharlal Nehru 1958 1959
7. Morarji Desai 1959 1964
8. T.T.Krishnamachari 1964 1965
9. Sachindra Chaudhari 1965 1967
10. Morarji Desai 1967 1970
11. Smt.Indira Gandhi 1970 1971
12. Yashwantrao Chavan 1971 1975
13. C. Subramanian 1975 1977
14. H.M.Patel 1977 1979
15. Charan Singh 1979 1980
16. R.Venkataraman 1980 1982
17. Pranab Mukherjee 1982 1985
18. V.P.Singh 1985 1987
19. S.B.Chavan 1987 1989
20. Madhu Dhandavate 1989 1990
21 Yashwant Sinha 1990 1991
22. Dr.Manmohan Singh 1991 1996
23 P. Chidambaram 1996 1998
24. Yashwant Sinha 1998 2002
25. Jaswant Singh 2002 2004
26. P.Chidambaram 2004 2008
27. Dr.Manmohan Singh 2008 2009
28. Pranab Mukherjee Feb.2009 26.6.2012
29. P.Chidambaram Augest 2012 26.5.2014
30. Arun Jaitley 26.5.2014 continues
       
Q61. Who was the first Finance Minister of independent India and what was he previously?
R.K.Shanmugham Chetty - he was the Dewan of Cochin Princely State.
Q62. Who are the persons to hold the post of Finance Minister twice so far?
1. T.T.Krishnamachari 1957-58 and 1964-67
2. Morarji Desai 1959-64 and 1967-70
3. P. Chidambaram 1996-98 and 2004-08
4. Dr. Manmohan Singh 1991-96 and 2008-09
5. Yashwant Sinha 1990-91 and 1998-2002.
6. Pranab Mukherjee 1982-85 and Feb.2009 to 26.6.2012
 
Q63. Who is the only woman Finance Minister of India?
Smt. Indira Gandhi - 1970-1971.
Q64. Who, as a Rajya Sabha member, was the first to hold the Finance Minister portfolio?
Pranab Mukherjee. The next is Dr. Manmohan Singh.
Q65. Who is the first Reserve Bank Governor to become a Finance Minister?
C.D.Deshmukh.
Q66. What are all the major departments of the Finance Ministry of India?
1. Department of Economic Affairs - Policies
2. Department of Expenditure - Funds Allocation.
3. Department of Revenue - Funds collections.
4. Department of Disinvestments - started only from 1999 to deal with privatization of Public Sector Units ( specially sick units)
5. Financial Services.
Q67. Which service candidates from the UPSC ranks are recruited directly as officers in the Finance Ministry or other Central Government Financial branches?
Indian Revenue Service.
Q68. Income tax department comes under which department of finance ministry?
Department of Revenue.
Q69. When was the two voluntary disclosure of income scheme introduced?
1965 and 1977.
Q70. When was the first Income-Tax Act passed?
1961 - effective from 1.4.1962
Q71. When was PAN - Permanent Account Number introduced?
1972 - (New PAN system introduced from 1994 and is being updated at regular intervals).
Q72. What is CBDT?
Central Board of Direct Taxes - a statutory authority under Central Board of Revenue Act 1963.
Q73. What are the two types of taxes?
Direct and Indirect.
DIRECT TAXES are income tax, Wealth tax, gift tax, corporate taxes, estate duty etc., which are directly paid to the government by the persons concerned.
INDIRECT TAXES are taxes collected by the intermediaries and remitted to the government like Service Tax, Sales tax, VAT etc.,
Q74. Which article of the Constitution authorizes the centre and the states to collect taxes?
Article 265.
Q75. What is VAT and when from it was introduced?
Value Added Tax - a slightly complex system of chain taxation, a little hard to understand at the first instance. However, to put it in the simplest possible form, it is "the value added to a product by a business is the sale price charged to the customer minus the cost of materials and other taxable inputs. It is a state subject and centre acts only as a facilitator in its implementation and collection.
Q76. When from the VAT introduced in the states?
After much deliberations and piece meal introductions in states, finally it was implemented throughout India from 1.4.2005.
Q77. Where is the National Academy of Direct Taxes?
Nagpur - Functioning from 1957. It was earlier called Indian Revenue Services Staff College.
Q78. What are all the various Committees and Commissions formed in the Taxation side for various purpose?
1. Varadachari Commission 1951; 2. John Mathai Commission 1954; 3. Boothalingam Committee 1968; 4. Choksi Committee 1976; 5. L.K.Jha Committee 1987; 6. Kelkar Committee 2002
Q79. What was Rastogi Panel?
A panel or committee to review issues related to service tax.
Q80. Which unit of English currency was deemed to be, during Anglo-saxon times, the equivalent value of a cow in Kent or a sheep elsewhere?
Shilling.
Q81. When the paper currency actually came into use?
AD 806 - may have been introduced during the Tang dynasty rule in China between 618-907 AD. However, the regular/regulated use of it came in only during the end of 13th century.
Q82. Which was the first European country to introduce paper currency?
Sweden in 1661.
Q83. Which US Dollar bill features Abraham Lincoln and also his memorial?
Five Dollar bill and One Dollar Coin.
Q84. When from the "Euro" came into use in European countries?
1.1.1999 - but actual circulation commenced from 1.1.2002. This currency is managed by the European Central Bank, Frankfurt. More than half of European countries are yet to have Euro as its principal currence and are using only their currency.
Q85. Canada's two dollar bill carries which country's flag?
United States of America - American Flag.
Q86. Which country issued the smallest paper currency in history?
France.
Q87. In how many denominations of Indian currency Gandhiji's portrait appears?
Seven - 5,10,20,50,100,500 and 1000.
Q88. Which European major country has not accepted Euro as its currency?
Britain.
Q89. The currency of Qatar and Oman are RIAL from 1966 and 1970 respectively. What was their currency earlier?
Gulf Rupee - equivalent to Indian Rupee issued by the Reserve Bank of India upto that time.
Q90. Which is the most commonly named currency in the world?
Dollar, followed by Franc.
Q91. Who was the first Indian King to strike state coins?
Sher Shah Suri - in Devnagari Script.
Q92. One Dollar and Hundred Dollar Bill of USA carries the portrays of?
One - George Washington.; Hundred - Benjamin Franklin.
Q93. Why is US 1 Dollar bill considered as unlucky by most people in USA?
Because it contains 13 stars, 13 stripes, 13 steps, 13 arrows and olive branch with 13 leaves.
Q94. What is "Intaglio" printing in currency?
Raised printing which can be felt by touch in the currencies.
Q95. Which country issued the "ship series" currency notes in recent times?
Singapore between 1984 to 1991.
Q96. Which country is the first to issue polymer bank notes (currency)?
Australia - 5 dollar - in 1992.
Q97. Who are the earliest women to appear in a currency note?
1.Empress Jingu -Japan- a lengendary empress appeared in a currency in 1881.
2.Murasaki Shikibu - (973-1025) - Author of the "The Tale of Genji", the earliest known novel in human history. She appeared on a 2000 yen note issued in 2000.
3.Khiyo Higuchhi - Japan - a novelist - appeared in 5000 yen note, in 2004.
4.Queen Victoria in 10 pound notes of UK.
5. Martha Washington, wife of George Washington in 1 Dollar in 1886,1891.
Q98. What are the five currencies in the world which have distinct identity signs?
US Dollars, UK Pound, Euro, Japanese Yen and Indian Rupee.
CURRENCIES ACROSS THE WORLD.
No.CURRENCYCOUNTRIES
1.AfghaniAfghanistan
2.Austral (till 1991) now PesoArgentina
3.BalboaPanama
4.BirrEthiopia
5.BolivarVenezeula
6.BolivianoBolivia
7.CruzadoBrazil
8.ColonCosta Rica
9.DinarAlgeria, Bahrain, Iraq, Jordan, Kuwait, Libya, Macedonia, Serbia, Sudan,Tunisia.
10.DirhamMorocco, UAE
11.DongVietnam
12.DobraSao Tome & Principe
13.DramArmenia
14.DalasiGambia
15DollarAntigua & Barbuda, Austral, Bahamas, Barbados,Belize, Bolivia,Brunei, Canada, Dominica, Ecuador,Fiji, Grenada, Guyana, Jamaica, Liberia, MarshalIslands, Micronesia, Monaco, Namibia, Nauru, New Zealand, Palau, Singapore, St.Kitts & Nevis,St. Lucia, St. Vincent & The Grenadines, Taiwan, Trinidad&Tobago,Tuvalu, USA,Zimbabwe.
16.EscudoCape Verde
17.EuroAustria, Belgium, Cyprus, Estonia, Finland, France,Germany, Greece, Ireland, Italy, Luxembourg, Malta,the Netherlands, Portugal, Slovakia, Slovenia, Spain,Montenegro, Andorra, Monaco, San Marino, Vatican.
18.FrancAndorra, Belgium, Benin, Burkino Faso, Burundi,Cameroon, CA Republic, Chad, Comoros, Congo,Cote d'Ivoire, DR Congo, Djibouti, Eq. Guinea, Gabon,Guinea, Guinea Bissau, Liechtenstein, Madagascar,Mali, Niger, Rwanda, Seneral, Swaziland, Togo.
19.ForintHungary
20.Gold CordobaNicaragua
21.GurraniParaguay
22.GuilderSuriname
23.HryvniaUkraine
24.KwanzaAngola
25.KunaCroatia
26.KorunaCzech Republic, Slovakia
27.KroneDenmark, Norway
28.KroonEstonia
29.KwachaMalawi, Zambia
30.KronaIceland, Sweden
31.KipLaos
32KyatMyanmar
33.KinaPapua New Guinea
34.LeoneSierra Leone
35.LitasLithuania
36.LatLatvia
37.LotiLesotho
38.LekAlbania
39.LevBulgaria
40.LampiraHonduras
41LariGeorgia
42.LiraMalta, San Marino, Turkey
43.LeuMoldova, Romania
44.ManatAzerbaijan, Turkmenistan
45.MarkBosnia & Herzegovina
46.MeticalMozambique
47.NgultrumBhutan
48.NafkaEritrea
49.New ShekelIsrael
50.NairaNigeria
51.New SolPeru
52OoguiyaMauritania
53.Pa'angaTonga
54.PesettaAndorra
55.PulaBotswana
56.PesoArgentina, Chile, Columbia, Cuba, Dominican Republic, Mexico,Uruguay.
57.PoundCyprus, Egypt, Lebanon, Philippines, Syria.
58.Pound SterlingUnited Kingdom
59.QuentzalGuatemala
60.RubleBelarus, Russia, Tajikistan
61.RielKampuchea
62.RenimbiChina
63.RupiahEast Timor, Indonesia
64.RealBrazil
65.RingittMalaysia
66.RialIran, Oman, Qatar, Saudi Arabia, Yemen
67.RufiaMaldives
68.RandSouth Africa
69.RupeeIndia, Mauritius, Nepal, Pakistan, Seychelles, Sri Lanka.
70.ShillingAustria, Kenya, Somalia, Tanzania, Thailand,Uganda
71.SomKyrgyzstan, Uzbekistan
72.TolarSlovenia
73.TakaBangladesh
74.TengeKazakhstan
75.TugrikMongolia
76.TalaSamoa
77.VatuVanuatu
78.WonKorea (both)
79.YuanChina
80.YenJapan
81.ZlotyPoland.

RESERVE BANK

Q99. When was Reserve Bank of India started and under what provisions?
It was started on the basis of "Hilton Young Commission Report" of 1926 passed by the "Reserve Bank of India Act" of 1934. The RBI started functioning from 1.4.1935.
Q100. Where is the headquarters of the Reserve Bank of India?
Mumbai.
Q101. What is the sculpture found in front of the RBI Mumbai Office?
"Yakshini" - depicting "prosperity through agriculture"
Q102. What is the animal and tree found in the logo of RBI?
Tiger and Palm Tree.
Q103. Where is the staff training college of RBI?
Pune, Maharashtra.
Q104. When from the Reserve Bank of India became fully owned by India?
1.1.1949 by way of Nationalization.
Q105. How many Regional/branch/sub offices are there for RBI?
4 Regional, 15 branches, and 5 sub offices, with 22 branches in state capitals.
Q106. Who administers the RBI?
Governor, four Deputy Governors, four Regional Directors, and ten other directors from various other fields. (The directors are nominated under Section 8 (1) b,c,d of the RBI Act.)
Q107. As of 2011, who are the two famous industrialists now in the board of directors of the RBI?
Azim Premji of WIPRO group & Kumaramangalam Birla of Birla Groups.
Q108. What are the major functions of the RBI?
1. Issues bank notes above Re.1/-. Also withdraws and destroys all demonetized, torn, and notes not fit for circulation.
2. Acts as the Banker of Government of India, Commercial banks and other Cooperative banks.
3. Formulates and administers Monetary Policy and Credit Policy. Issues these policy statements during April and October.
4. Maintains exchange value of Rupees.
5. Represents India at the International Monetary Fund.
6. No personal or company accounts are maintained by the RBI.
Q109. List the Governors of RBI since independence?
1. Sir Osborne Smith 1935-1937
2. Sir James Taylor 1937-1943
3. Sir C.D.Deshmukh 1943-1949
4. Sir Beneral Rama Rau 1949-1957
5. K.B.Ambegaonkar 1957
6. H.V.R.Iyengar 1957-1962
7. P.C.Bhattacharya 1962-1967
8. L.K.Jha 1967-1970
9. B.N.Adarkar 1970
10. S.Jagannathan 1970-1975
11. N.C.Sengupta 1975
12. K.R.Puri 1975-1977
13. M.Narasimhan 1977
14. Dr.I.G.Patel 1977-1982
15. Dr.Manmohan Singh 1982-1985
16. A.Ghosh 1985
17. R.N.Malhotra 1985-1990
18. S.Venkitaramanan 1990-1992
19. Dr.C.Rangarajan 1992-1997
20. Dr.Bimal Jalan 1997-2003
21. Dr.Y.Venugopal Reddy 2003-2008
22. Dr.D.Subba Rao 2008--Sep 2013
23. Raghuram Rajan Sep 2013 --4.9.2016.
24. Urjit Patel                     4.9.2016
   
   
   
   

Q110. Who was the first Governor of RBI?
Sir Osborne Smith - 1935-1937
Q111. Who was the first Indian Governor of RBI?
Sir C.D.Deshmukh - 1943 - 1949 - Incidentally he is also the first RBI Governor to become a Finance Minister (1951-1957).
Q112. Who had the longest stint as RBI Governor?
Sir Benegal Rama Rau - 1949-1957 - 8 years.
Q113. Reserve bank being the central bank for lending and if necessary for borrowing from other banks, what are the different rate polices and terminologies used by it?
1. Bank Rate; 2. Cash Reserve Ratio - CRR; 3. Statutory Liquidity Ratio - SLR; 4. Repo Rate; 5. Reverse Repo Rate; 6. Base Rate; 7. Savings Bank Rate; 8. Deposit Rate.
Q114. What is Bank Rate?
The interest rate the RBI charges the banks for lending to the banks. If the RBI wants to increase the liquidity and money supply in the market, it will decrease the bank rate, and, if it wants to reduce the liquidity and money supply in the system, it will increase the bank rate. As of 5th May 2011, it stands at 6% and its increase/decrease is related to inflationary trends.
Q115. What is Cash Reserve Ratio - CRR?
Every commercial bank has to keep certain minimum cash reserves with RBI. RBI can vary this rate between 3 to 15%. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to affect a decrese or an increase in the money supply. An increase in CRR will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 6%.
Q116. What is Statutory Liquidity Ratio - SLR?
Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a large proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is anti-inflationary impact. A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities.
Q117. What is REPO rate?
The rate at which the RBI lends money to commercial banks is called REPO rate, a short term repurchase agreement. A reduction in the REPO rate will help banks to get money at a cheaper rate. When the REPO rate increases borrowing from RBI becomes most expensive. In short, it is the rate at which the central bank pumps in short term liquidity into the system. It is a fluctuating rate decided by the RBI.
Q118. What is Reverse Repo Rate?
It is the rate at which banks park their excess short term liquidity with the central bank (RBI).
Q119. What is Base Rate?
The minimum interest rate investors will accept for investing in a non-treasury security.
Q120. What is Savings Bank Rate?
The rate of interest paid by the bank, to the cash left in the simplest form of bank accounts (mostly individuals) that one can open and transact any day any time of a bank. Because of this uncertainty of the residue cash in an account, the interest offered on these accounts are normally low.The interest rate varies at different times.Earlier the interest was paid on a monthly basis and nowadays the interest is paid on a 'daily balance' basis.
Q121. What is "Deposit Rate'?
The interest payable on certain amount put in a bank for a specific period by an investor. The rate varies according to the period of deposit, the longer the period the rate of interest increases, as the concerned banks have the facility of holding the cash.

NATIONALIZED, SCHEDULED AND MULTINATIONAL BANKS

Q122. Which was the first Indians managed Bank started in India?
Oudh Commercial Bank founded in 1881.
Q123. Which was the second Indians managed Bank to be started in India?
Punjab National Bank - 1884.
Q124. Which part of the Indian Freedom Movement paved the way for the opening of more Indian Commercial Banks?
Swadeshi Movement.
Q125. What was Imperial Bank, how was it formed, how was it functioning, and what happened to it after independence?
It was formed by amalgamating the Bank of Bengal (1806), Bombay (1840), and Madras (1843) (all British owned) in 1921. It was functioning as the RBI, until the RBI was started in 1935 and later nationalized in 1949. After independence, the Imperial Bank became the State Bank of India.
Q126. Before nationalization which was the only Government commercial bank?
State Bank of India.
Q127. Who was the Prime Minister to nationalize the banks and from which date?
Smt. Indira Gandhi from 19.7.1969.
Q128. How many banks were nationalized at the first instance and what are they?
Fourteen banks from 19.7.1969. They were:
1. Allahabad Bank
2. Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Central Bank of India
6. Canara Bank
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank
11. Syndicate Bank
12. Union Bank of India
13. United Commercial Bank
14. United Bank of India.
Q129. When was the second nationalization of banks took place and what were the banks?
15.4.1980 -- 6 banks were nationalized. They were:
1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Vijaya Bank
5. Oriental Bank of Commerce
6. Punjab and Sind Bank.
However, there are now only nineteen nationalized banks, as New Bank of India got merged with Punjab National Bank.
Q130. Jayaprakash Narayan described the nationalization of banks as...........?
"Masterstroke of political sagacity".
Q131. How was State Bank of India known earlier and when from it came to be known as such ?
It was Imperial Bank earlier and from 1.7.1955 it came to be known as State Bank of India. It has about 16000+ branches and along with its associate banks, it has more than 26000+ branches, employing more than 2 lakh staff. Largest in the world in terms of branches and employees.
Q132. What are the subsidiaries of State Bank of India?

1. State Bank of Bikaner & Jaipur: 1966 - An amalgamation of State Bank of Jaipur and State Bank of Bikaner.
2. State Bank of Hyderabad: Started by the Nizam of Hyderabad in 1940 and became an associate of State Bank of India from 1.1.1960.
3. State Bank of Mysore: Started as Bank of Mysore Ltd., and became a subsidiary of State Bank of India from 1.1.1960.
4. State Bank of Patiala: Started in 1917 as Patiala State Bank by Maharaja Bhupinder Singh. Became an associate of SBI from 1.1.1960.
5. State Bank of Saurashtra : Established in 1902 as Bhavnagar Darbar Bank and became a subsidiary of State Bank of India from 1.1.1960.
6. State Bank of Travancore: Started as Travancore Bank Ltd., and became an associate of State Bank of India from 1.1.1960.
NOTE:   On 15.2.2017,  the Union Government (Cabinet)  has approved the merger of these banks with the State Bank of India.  From 1.4.2017, these banks have been merged with the State Bank of India, making STATE BANK OF INDIA as one of the (10th) largest banks in the world in terms of assets and holdings. 

Q133. What are the other Nationalized Banks?
1. Allahabad Bank: Oldest Public Sector Bank started in 1865 by a group of Europeans.
2. Andhra Bank: Started by Dr. Bhogaraja Pattabhi Seetharamiah on 19.11.1923.
3. Bank of Baroda: Started by Maharaja Sayaji Rao Gaekwad III of Baroda on 20.7.1908.
4. Bank of India: Started on 7.9.1906 by a few businessman.
5. Bank of Maharashtra: Started on 16th September 1935 by V.G.Kale and D.K. Sathe at Pune.
6. Canara Bank : Founded in 1906 as Canara Bank Hindu Permanent Fund at Mangalore by Ammembal Subba Rao Pai.
7. Central Bank of India: Established in 1911 by Sir Sorabji Pochkhanwala.First Commercial Bank to be completely owned by Indians.
8. Corporation Bank: Started in 1906 at Udipi, Karnataka by Khan Bahadur Haji Abdullah, Haji Kasim Saheb Bahadur and few others.
9. Dena Bank: Commenced on 26.5.1938 by Devkaran Nanjee.
10. Indian Bank : Started on 15.8.1907 by a team of people led by V.Krishnaswamy Iyer, a lawyer of Madras.
11. Indian Overseas Bank : Started on 10.2.1937 by M.Ct.Cm.Chidambaram Chettiyar.
12. Oriental Bank of Commerce: Started on 19.2.1943 by Rai Bahadur Lala Sohan Lal at Lahore.
13. Punjab & Sind Bank : Started in 1908 by Bhai Vir Singh, Shri Sundar Singh Majitha and Sardar Tarlochan Singh.
14. Punjab National Bank: Started in 1895 by Lala Lajpat Rai.
15. Syndicate Bank: Founded in 1925 at Udupi, Karnataka by Upendra Ananth Pai, Vaman Kudva and Dr. T.M.H.Pai as Canara Industrial and Banking Syndicate Ltd.,
16. Union Bank of India: Started in 1920 - a bank inaugurated by Mahatma Gandhi.
17. United Commercial Bank:1904 by Ganshyam Das Birla at,Kolkatta.
18. Union Bank of India: Started in 1950 by amalgamating Comilla Banking Corporation Ltd., (1914), Bengal Central Banking Ltd., (1918), Comilla Union Bank Ltd.,(1922) and Hooghly Bank Ltd., (1932).
19. Vijaya Bank: Started by A.B.Shetty and few others on 23.10.1931.
Q134. What are "Scheduled Banks"?
Banks included in the Second Schedule of RBI Act of 1934 and comply with the regulations/criteria laid down vide Section 42(6)(a) of the Act, are called so. They are not nationalized but functioning as a Bank with private management. They are all approved by the RBI and declared as "Scheduled Banks" with sufficient and stipulated paid up Capital with RBI and also with minimum percentage of liability.
Q135. What are the Scheduled Banks operating in India?
1.Axis Bank - Formerly UTI Bank Ltd., started in 1994. Promoted by Unit Trust of India, LIC and other Insurance Companies.
2.Bank of Rajasthan: Started in Udaipur on May 8, 1943 by Rai Bahadur P.C.Chatterjee.
3.Bharat Overseas Bank : Started in 1973. Owned by Indian Overseas Bank,
4.Bank of Rajasthan: Started in 1943 - merged with ICICI Bank in 2010.
5.Federal Bank: Started in 1945 - headquartered at Alwaye, Kerala.
6.Karur Vysya Bank Ltd: Started in 1916 - headquartered at Karur, Tamilnadu.
7.South Indian Bank Ltd: Started in 1929 -- headquartered at Thrissur, Kerala.
8.Karnataka Bank Ltd: Started in 1924 - headquartered at Mangalore, Karnataka.
9.Catholic Syrian Bank :Started at Thrissur, Kerala on 1.1.1921.
10.Centurion Bank: Started in Panaji, Goa, in 1994.
11..Dhanalakshmi Bank: Started at Thrissur, Kerala on 14.11.1927.
12.HDFC Bank: Started in 1994 by Housing Development Finance Corporation Ltd., a private sector housing finance company.
13.ICICI Bank: Started in 1994 by Industrial Credit and Investment Corporation Ltd.,
14..Indus & Ind Bank: Started in 1994 - Promoted by Srichand P. Hinduja.
15.ING Vysya Bank: The Dutch ING Bank is the promoter along with Vysya Bank, India from 2002.
16.Jammu & Kashmir Bank: Started on 4.7.1939 and is owned by the State of Jammu & Kashmir.
17. Kotak Mahindra Bank: Started in 1984 and promoted by Kotak Mahindra Finance Ltd.,
18. Yes Bank: In collaboration with Rabo Bank of Netherlands. Promoted by Rana Kapoor and Ashok Kapur.
Q136. What are the famous foreign banks operating in India?
1.ABN AMRO : - Netherlands - Began in India in 1991.
2. Abudhabi Commercial Bank - UAE - 1985 in India.
3. American Express Bank - USA.
4. BNP Paribas : France.;
5. Citi Bank - USA
6. Deustche Bank - Netherlands - 1994 in India.
7. Honkong and Shanghai Banking Corporation (HSBC) : 1987 in India.
8. Standard Chartered Bank- UK - 1969 in India.
Q137. What are the other banks, which are not commercial, but created for specific purposes like Industrial financing etc.,?
1.ICICI - Industrial Credit & Investment Corporation Ltd., Established in 1955 - for promotion of industrical activities in India. A world Bank initiative.
2.SIDBI : Small Industries Development of India - 1990.
3.NABARD - National Bank of Agriculture and Rural Development. Established in July 1982 by the recommendation of Sivaraman Committee reports. Policy planning and operations for agricultural credits and rural development. Extends refinance to the state level land development banks, cooperative banks and regional rural banks.
4. EXIM Bank - Export and Import Bank - Started on 1.1.1982 to promote and facilitate imports and exports of manufacturers.
5. IDBI - Industrial Development Bank of India - Started in 1964.
6.IFCI - Industrial Finance Corporation of India - July 1948.
7. NATIONAL HOUSING BANK: Started in July 1988 under the National Housing Bank Act of 1987. Housing finance activities.
All these banks are aimed at development of specific fields. However, in the field of housing, liberalization has given room for a host of private and and scheduled banks to enter and are certainly opened a wider option to the borrower.
8. ECGC OF INDIA LTD: Export Credit Guarantee Corporation of India Ltd - established in 1957 - extends support for export promotion and development.
Q138. What was the first report based on which Banking Reforms were begun?
Narasimhan Report of 1969 - based on the report, the banking reforms, liberalization etc., began in 1971 and that is why we have witnessed a huge growth in the banking sector.
Q139. Which was the first full Indians contributed Commercial Bank of India?
Central Bank of India - 1911 - founder Sorabjee Pochkanwala.

INSURANCE

Q140. How did Insurance activity begin in India?
1818 - The insurance business was started as a means of earnings for Britishers' widows.
Q141. Which are the Insurance Companies first started in India?
1. Bombay Mutual Life Insurance Society - 1870
2. Oriental Assurance Co.Ltd., - 1880.
Q142. When was the General Insurance business started in India and by whom?
Triton Insurance Co.Ltd., Kolkatta in 1850 by the British.
Q143. When was the Insurance Act Passed?
1938 - amending and consolidating the earlier acts of 1912 and 1918 by the British.
Q144. When did the nationalization of the Life Insurance sector take place?
1956. There were 240 life insurance companies at the time of nationalization and by amalgamation of all these, the Life Insurance Corporation of India was started from 1.9.1956.
LIC is headquartered in Mumbai and has 7 zonal offices, more than 100 divisional offices, more than 2000 branches all over India and has more than 10 lakhs agents working for it, besides its regular staff. LIC along with other insurances companies is one of the major source of employments for educated mass of our country.
Q145. When was the General Insurance section nationalized?
1972 by the General Insurance Nationalization Act of 1972 to take effect from 1.1.1973. General Insurance Corporation was started with four subsidiary companies, by amalgamating about 107 companies which were in the field. viz:
1. National Insurance Company.,
2. New India Assurance Company.,
3. Oriental Insurance Company.
4. United India Insurance Co.,
From 2000, these four companies have been delinked from the parent corporation GIC and made into separate companies.
Q146. When from private companies are allowed to participate in the Insurance Sector?
2000-2001.
Q147. What are the private insurance companies operating in India?
1.Bajaj Alliance: In collaboration with AG Insurance of Germany.
2.ICICI Prudential: In collaboration with Prudential Insurance of UK.
3.HDFC Standard: In collaboration with Standard Life Insurance, UK.
4.Birla Sun: In Collaboration with Sunlife Financial Co., Canada.
5.SBI Life: In collaboration with Cardiff SA, France.
6.AVIVA : An insurance company of Dabur India with Aviva, UK.
7.Reliance: An Insurance Company of the Reliance Ambani Group.
8.Tata AIG: In collaboration with American International Groups Inc. USA.
9.Metlife: An Insurance company of Met Life Group USA, in collaboration with, Jammu and Kashmir Bank, Dhanalakshmi Bank, Karnataka Bank, Geojit Securities and others. Started in 2001.
10. Max New York: Max India Ltd., in collaboration with New York Life International, USA.
11. Shriram Life: An insurance company of Shriram Groups of Tamilnadu in collaboration with Sanlan Group of South Africa.
Q148. Which committee's recommendations brought about the changes and developments in the insurance sector?
R.N. Malhotra Reforms Committee.
Q149. Which organization takes care and control of the insurance activities of the insurance sector, in view of the large scale private participation?
IRDA - Insurance Regulatory and Development Authority. Created under IRDA Bill of December 1999. It consists of a Chairman, 3 life members and four non-permanent members and functions from Hyderabad. Its aim is to protect the interests of policy holders and growth of the industry.

STOCK EXCHANGES AND FINANCIAL INSTITUTIONS

Q150. What is a Share or a Stock?
Capital raised by a company or corporation through open market issuance and distribution of shares to public. It is called Stocks.
Q151. What is a Stock Exchange?
An organization to trade on the shares of various companies.
Q152. Which is the oldest Stock Exchange in the world?
Amsterdam - The Netherlands. Established in 1602, where the Dutch East Indies Company issued the first shares. It was the first company to issue stocks and shares.
Q153. Which is the oldest stock exchange of India ( Also of Asia) and what distinction it holds?
BSE - Bombay Stock Exchange, located at Phiroze Jeejebhoy Towers, Dalal Street, Mumbai. It was established in 1875, as
Native Share and Stock Brokers' Association by a group of people, which later to become Bombay Stock Exchange.
1. BSE Sensex was introduced in the year 1986
2. Largest stock exchanges in the world in terms of listed companies around 4800.
3. 4th largest in Asia.
4. 8th largest in the world.
Q154. Which statutory body was created to protect the interests of investors and to keep a watch over traders and brokers?
SEBI - Securities and Exchange Board of India. Originally established in 1988 and later in 1992 accorded with statutory powers by an Act in 1992. By this statutory provisions, it has the quasi-legislative, quasi-judicial and and quasi-executive powers.
Q155. Mention a few famous Stock Exchanges of the world?
1.NYSE - New York Stock Exchange - located at Wall Street,. Also called the "Big Board" - largest in terms of Dollar value transacted and second largest in terms of listed companies. Established on 17.7.1729 by a group of stock brokers sitting under a "button wood" tree at No.68, Wall Street. The group entered into this field of trading under an agreement called "Buttonwood Agreement". Offcially this stock exchange came into existence from 8.3.1817. Its tagline is "Integrity Protecting the interests of Man".
2.NASDAQ : "National Association of Securities Dealers' Automated Quotient" - New York, USA. Trading commenced on 8.2.1971. It is an electronics stock exchange, the first of its kind.
3.LSE - London Stock Exchange. In 1697, one Mr. John Casting, having a small office in Jonathan's Coffee House, London, started brokering on stocks and shares which paved the way for the LSE to start. The exchange is now functioning at Paternoster Square in London. Big Bang is how the regulations (1986) of stock trading in this exchange is called.
The notable feature of the LSE is the dynamic sculpture by artists "Grey World" and named the "Source". It is formed with 729 spherical balls suspended on Cables. These spherical balls can move themselves independent of each other, forming dynamic shapes, characteras and fluid like motions that reflects the nature of the Stock Market.
4.TOKYO : Started functioning from 1.6.1875. Second largest by monetary volume. Has about 2275 domestic and some foreign companies.
5. EURONEXT: This came into effect from 22.9.2000 after the introduction of Euro as currency in European countries, by amalgamating Amsterdam, Brussels and Paris Exchanges.
Q156. How the "Share" is defined in the financial market?
A unit of account for various financial instruments including stocks, mutual funds etc.,
Q157. What is a "Mutual Fund"?
A form of collective investment that pools money from many investors and invests the money in stocks, bonds, short term money market instruments and/or other securities.
Q158. What is the leading mutual fund organization of India?
Unit Trust of India - Established in 1963 and headquartered at Mumbai. It was created under the Unit Trust of India Act of 1963 and was a prime institution in this field. However, two incidents viz: "Ketan Parekh" scam and the unfortunate collapse of US 64 bonds belittled the confidence the investors had in it. In order to regain the investors confidence and as a bail out package, the Government of India has bifurcated the UTI as "UTI Mutual Fund" and "UTI Asset Management Company" as per the guidelines of SEBI. This change, helped in transferring the defunct US64 bonds to these companies for further management in order to safeguard the investors interests and it really worked well for the investors and the US 64 bond came to an end on 31.5.2003 bowing to popular response.
Q159. What is a "Bond"?
A debt security in which the issuer owes the holder a debt and is obliged to repay the principal with interest.
Q160. What is "Risk" related to finance?
It denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or from some future event. In simple, it is a probability of a loss or threat.
Q161. What is "Hedging"?
A strategy designed to minimize exposure to an unwanted risk, while still allowing the business to profit from an investment activity.
Q162. What is "Corporate Finance"?
A specific area of finance dealing with the financial decisions, corporations make and the tools as well as analysis used to make these decisions.
Q163. What is "Macaroni Defence"?
A strategy deployed by companies that do not want to be taken over, involves the issue of a large quantity of bonds, that must be reduced at a price above face value in the event the company does not get acquired.
Q164. What are "Scripps"?
Any substitute for currency which is not a legal tender, and is often a form of credit.
Q165. What are the institutions according credibility rating to financial institutions?
1. CRISIL : Incorporated in 1987, headquartered at Mumbai. CRISIL - stands for "Credit Rating Information Services India Ltd.,".
2. ICRA : Investment information and Credit Rating Agency of India.
3. CARE: Credit Analysis and Research Ltd.,
4. DCR INDIA : Duff and Phelpps Credit Rating India P. Ltd.,
5. ONICRA : Credit Rating Agency India Ltd.,
Q166. What are the various gradations accorded to the financial companies by the Credit Rating Agencies?
AAA - Highest Safety; AA - High Safety;.
A - Adequate Safety; BBB - Moderate Safety;
BB - Sub-moderate safety; B - Inadequate safety;.
C - Substantial Risk; D - Default.
Q167. What are the three world famous credit rating agencies?
1. STANDARD & POOR's: 1860/1941:Founded by Daryl Lethbridge of USA.
2. MOODY's: Moody's Investors Service - 1906 - Founded by John Moody of USA.
3. FITCH GROUP: 1913 - Founded by John Knowles Fitch of USA.