Clerk & PO : Important Quiz for Bank Part-04
Rate of Return: A percentage showing the
amount of investment gain or loss against the
initial investment.
Real Interest Rate: The net interest rate over
the inflation rate. The growth rate of
purchasing power derived from an investment.
Redemption Value: The value of a bond when
redeemed.
Reinvestment Value: The rate at which an
investor assumes interest payments made on a
bond which can be reinvested over the life of
that security.
Relative Strength Index (RSI): A stock’s price
that changes over a period of time relative to
that of a market index such as the Standard &
Poor’s 500, usually measured on a scale from
1 to 100, 1 being the worst and 100 being the
best.
Repurchase Agreement: An arrangement in
which a security is sold and later bought back
at an agreed price and time.
Resistance Level: A price at which sellers
consistently outnumber buyers, preventing
further price rises.
Return: Amount of investment gain or loss.
Rescheduling of Payment: Rearranging the
repayment of a debt over a longer period than
originally agreed upon due to financial
difficulties of the borrower.
Restrictive Endorsement: Where endorser
desires that instrument is to be paid to
particular person only, he restricts further
negotiation or transfer by such words as "Pay
to Ashok only". Now Ashok cannot negotiate
the instrument further.
Right of Appropriation: As per Section 59 of
the Indian Contract Act, 1972 while making
the payment, a debtor has the right to direct
his creditor to appropriate such amount
against discharge of some particular debt. If
the debtor does not do so, the banker can
appropriate the payment to any debt of his
customer.
Right of Set-Off : When a banker combines
two accounts in the name of the same
customer and adjusts the debit balance in one
account with the credit balance in other
account, it is called right of set-off. For
example, debit balance of Rs.50,000/- in
overdraft account can be set off against credit
balance of Rs.75,000/- in the Savings Bank
Account of the same customer, leaving a
balance of Rs.25,000/- credit in the savings
account.
Rights Issue: An offer by way of rights to
current holders of securities that allows them
to subscribe for securities in proportion to
their existing holdings.
Risk-Averse, Risk-Neutral, Risk-Taking:
Risk-averse describes an investor who requires
greater return in exchange for greater risk.
Risk-neutral describes an investor who does
not require greater return in exchange for
greater risk.
Risk-taking describes an investor who will
accept a lower return in exchange for greater
risk.
Safe Custody: When articles of value like
jewellery, boxes, shares, debentures,
Government bonds, Wills or other documents
or articles are given to a bank for safe keeping
in its safe vault, it is called safe custody.. Bank
charges a fee from its clients for such safe
custody.
Savings Bank Account: All banks in India are
having the facility of opening savings bank
account with a nominal balance. This account
is used for personal purposes and not for
business purpose and there are certain
restrictions on withdrawals from this type of
account. Account holder gets nominal interest
in this account.
Senior Bond: A bond that has priority over
other bonds in claiming assets and dividends.
Settlement: Conclusion of a securities
transaction when a customer pays a broker/
dealer for securities purchased or delivered,
securities sold, and receive from the broker
the proceeds of a sale.
Short Hedge: A transaction that protects the
value of an asset held by taking a short
position in a futures contract.
Short Position: Investors sell securities in the
hope that they will decrease in value and can
be bought at a later date for profit.
Short Selling: The sale of borrowed securities,
their eventual repurchase by the short seller at
a lower price and their return to the lender.
Speculation: The process of buying investment
vehicles in which the future value and level of
expected earnings are highly uncertain.
Stock Splits: Wholesale changes in the number
of shares. For example, a two for one split
doubles the number of shares but does not
change the share capital.
Subordinated Bond: An issue that ranks after
secured debt, debenture, and other bonds, and
after some general creditors in its claim on
assets and earnings. Owners of this kind of
bond stand last in line among creditors, but
before equity holders, when an issuer fails
financially.
Substantial Shareholder: A person acquires
an interest in relevant share capital equal to,
or exceeding, 10% of the share capital.
Support Level: A price at which buyers
consistently outnumber sellers, preventing
further price falls.
amount of investment gain or loss against the
initial investment.
Real Interest Rate: The net interest rate over
the inflation rate. The growth rate of
purchasing power derived from an investment.
Redemption Value: The value of a bond when
redeemed.
Reinvestment Value: The rate at which an
investor assumes interest payments made on a
bond which can be reinvested over the life of
that security.
Relative Strength Index (RSI): A stock’s price
that changes over a period of time relative to
that of a market index such as the Standard &
Poor’s 500, usually measured on a scale from
1 to 100, 1 being the worst and 100 being the
best.
Repurchase Agreement: An arrangement in
which a security is sold and later bought back
at an agreed price and time.
Resistance Level: A price at which sellers
consistently outnumber buyers, preventing
further price rises.
Return: Amount of investment gain or loss.
Rescheduling of Payment: Rearranging the
repayment of a debt over a longer period than
originally agreed upon due to financial
difficulties of the borrower.
Restrictive Endorsement: Where endorser
desires that instrument is to be paid to
particular person only, he restricts further
negotiation or transfer by such words as "Pay
to Ashok only". Now Ashok cannot negotiate
the instrument further.
Right of Appropriation: As per Section 59 of
the Indian Contract Act, 1972 while making
the payment, a debtor has the right to direct
his creditor to appropriate such amount
against discharge of some particular debt. If
the debtor does not do so, the banker can
appropriate the payment to any debt of his
customer.
Right of Set-Off : When a banker combines
two accounts in the name of the same
customer and adjusts the debit balance in one
account with the credit balance in other
account, it is called right of set-off. For
example, debit balance of Rs.50,000/- in
overdraft account can be set off against credit
balance of Rs.75,000/- in the Savings Bank
Account of the same customer, leaving a
balance of Rs.25,000/- credit in the savings
account.
Rights Issue: An offer by way of rights to
current holders of securities that allows them
to subscribe for securities in proportion to
their existing holdings.
Risk-Averse, Risk-Neutral, Risk-Taking:
Risk-averse describes an investor who requires
greater return in exchange for greater risk.
Risk-neutral describes an investor who does
not require greater return in exchange for
greater risk.
Risk-taking describes an investor who will
accept a lower return in exchange for greater
risk.
Safe Custody: When articles of value like
jewellery, boxes, shares, debentures,
Government bonds, Wills or other documents
or articles are given to a bank for safe keeping
in its safe vault, it is called safe custody.. Bank
charges a fee from its clients for such safe
custody.
Savings Bank Account: All banks in India are
having the facility of opening savings bank
account with a nominal balance. This account
is used for personal purposes and not for
business purpose and there are certain
restrictions on withdrawals from this type of
account. Account holder gets nominal interest
in this account.
Senior Bond: A bond that has priority over
other bonds in claiming assets and dividends.
Settlement: Conclusion of a securities
transaction when a customer pays a broker/
dealer for securities purchased or delivered,
securities sold, and receive from the broker
the proceeds of a sale.
Short Hedge: A transaction that protects the
value of an asset held by taking a short
position in a futures contract.
Short Position: Investors sell securities in the
hope that they will decrease in value and can
be bought at a later date for profit.
Short Selling: The sale of borrowed securities,
their eventual repurchase by the short seller at
a lower price and their return to the lender.
Speculation: The process of buying investment
vehicles in which the future value and level of
expected earnings are highly uncertain.
Stock Splits: Wholesale changes in the number
of shares. For example, a two for one split
doubles the number of shares but does not
change the share capital.
Subordinated Bond: An issue that ranks after
secured debt, debenture, and other bonds, and
after some general creditors in its claim on
assets and earnings. Owners of this kind of
bond stand last in line among creditors, but
before equity holders, when an issuer fails
financially.
Substantial Shareholder: A person acquires
an interest in relevant share capital equal to,
or exceeding, 10% of the share capital.
Support Level: A price at which buyers
consistently outnumber sellers, preventing
further price falls.