INSTITUTE OF BANKING SERVICES: CURRENT GK FOR CWE

US Open Novak Djokovic (SRB) Defeated Rafael Nadal (ESP); Samantha Stosur

(Australia) Defeated Serena Williams (USA)

Beauty Contests 2011:

Miss World 2011 Not Declared yet

Miss Universe 2011 Leila Lopes (Angola), Ceremony held at Brazil’s Sao Paulo

BRICS Next in New Delhi (March-Apr 2012), present New York (2011)

G-4 Countries India, Brazil, Japan and Germany

Vibrant Gujarat 2011

6th Global Summit

5th Global Summit: (More than 13 Country and State seminars were organized during the 2 day long summit. These seminars were a great success and all these seminars were able to garner huge participation and investors’ interest.) 12-13 Jan, 2013 Mahatma Mandir, Gandhinagar

List of countries in G20 Arabia, Argentina, Brazil, Australia, China, Canada, France, European Union, Italy, India, Indonesia, Germany, Korea, Japan, Russia, Mexico, Turkey, South

Africa, United States of America, United Kingdom

Outcome of the Summit:

G20

Commodity market transparency, Investing in infrastructure in developing countries, Innovative financing for development and climate Banking regulation, Protecting against instability of agricultural prices, Fighting corruption, Market regulation, Trade, Enhancing the IMF's response capacity and surveillance, Agriculture, Social regulation of globalisation, Financial stability board, Emergency humanitarian food reserves, Reform of the International monetary system, Tax heavens and non-cooperative jurisdictions and Action plan for growth and jobs

9th Pravasi Diwas Delhi

10th Pravasi Diwas Jaipur

F1 Race In India: Buddh International Circuit Stadium, Winner was Sebastian Vettel from RBR-Renault Team

1. Goa scheduled to host Asian Beach games in 2018.

2. Karnataka’s Belgaum is set to host 6th state-level cycling championship

3. Bharat Berry services the push e-mail services that BSNL is set to provide to its mobile subscribers of all circles in India.

4. Lewis Hamilton won Abu Dhabi Grand Prix 2011

5. Roger Federer won the Paris Masters 2011 title for the first time

6. Where is the Asia-Pacific summit being held? Hawaii

7. Which region of Madhya Pradesh has Infosys agreed to set up a development centre? Indore

8. At Pragathi Maidan, New Delhi, the 31st India International Trade Fair (IITF) is being held.

9. Lowell Paddock is set to take over as General Motors President and MD of India operations from 1^st January 2012

10. Vancouver the Canadian city bids to host IIFA in 2013.

11. Nana Patekar is set to participate in 50m rifle prone event at the forthcoming 55th National shooting championships.

12. Which tennis star has been named WTA player of the year? Petra Kvitova

13. Who has been selected for Swaralaya-Devarajan Master award? KJ. Yesudas

14. According to the data released by the commerce and industry ministry on 31 October 2011, the eight core infrastructure industries growth slowed down to what percentage for September 2011 as against 3.3 per cent in September 2010? 2.3%

15. Finance Minister Pranab Mukherjee on 31 October 2011 inaugurated a fully secure government e-payment system. It has been developed by Comptroller & Auditor general of India.

16. Finance Ministry gave its nod to Mining company Coal India Ltd (CIL) for acquiring stake in overseas unlisted firms. The Finance Ministry however did not grant complete relaxation to the norm of minimum internal rate of return (IRR) percentage from such acquisitions. What is the minimum internal rate of return (IRR) percentage quoted by the Ministry in this respect? 12%

17. According to the WPI data released by the Commerce and Industry Ministry on 3 November 2011, food inflation surged to what per cent for the week ended 22 October 2011 owing to soaring prices of various edibles such as vegetables, fruits, pulses, milk and all other protein-rich items? 12.21%

18. Nabum Tuki was sworn in as the Chief Minister of Arunachal Pradesh on 1 November 2011. He is the 7^th Chief Minister of Arunachal Pradesh

19. Uttarakhand state cabinet on 29 October 2011 cleared Uttarakhand Lokayukta Bill, 2011. Consider the following features of the bill:

i) The Chief Minister of the state, all ministers, MLAs and lower judiciary will be under the purview of Lokayukta.

ii) Judges of the Uttarakhand High Court will not be covered under the purview of Lokayukta.

20. Bengali film Chaplin was selected as the inaugural film at the 11 th edition of River to River Florence Indian Film Festival, 2011, in Florence, Italy scheduled to be held from 2 to 8 December 2011. Who is the director of the movie? Anindo Banerjee

21. According to a UN study what is India’s rank among a total of 187 countries in terms of Human

Development Index? 134th , Topper is Neitherland

22. Palestine won the membership of UNESCO( United Nations Educational, Scientific and Cultural

Organisation). UNESCO is the First UN agency Palestine has joined as a full member.

23. Russia and Bangladesh on 2 November 2011 signed a deal to build a nuclear power plant. Consider the following statements on the nuclear deal.

i) It would be Bangladesh’s first nuclear plant.

ii) The nuclear power plant will be set up at Rooppur in Pabna district.

24. Where is the India's first ocenarium planned? Sindhudurg district in Maharashtra

25. Who are been named athlete of the year 2011? Usain Bolt of jamaica and Sally Pearson of Australia

26. Which country has been suspended from Arab league and why?

Syria, To end violence against protesters, and called for sanctions and transition talks with opposition

27. Which country senate cleared economic reform bill recently? Italy

28. Which medal did India bag in Lal Bahadur Shastri Under-21 women's hockey tournament? Bronze

29. Who became the first foreign head of government or state to address 'People's Majlis', Maldives' Parliament

in its history of 78 years? Indian Prime Minister, Manmohan Singh

30. Name the 1968 Noble prize for medicine winner, who died recently. Gobind Khorana

31. Which country has announced USD 100 million credit facility to Maldives? India

32. Which stadium is set to host opening match of World Series Hockey starting on December 17th 2011?

Dhyan Chand National Stadium

33. Who resigned as Italian Prime Minister recently? Silvio Berlusconi

34. Which country is set to host 2018 Commonwealth Games? Australia

35. Which city is set to host 2017 world athletic championship? London

36. Name the Mexican Interior Minister who was killed in a helicopter crash recently. Francisco Blake

Which tennis icon won the 800th match of his career? Roger Federer

Which airlines recommendation to financial bail out appears to have failed? Kingfisher Airlines

Name the Nobel laureate who is set to lead Liberian peace initiative. Laymah Gbowee

Which continent is fast-emerging IT market, as the name dark continent fades off? Africa

With what motto has SAARC summit 2011 concluded?

Building bridges, Resolve to fight terrorism and implementation of South Asian Free Trade Agreement

(SAFTA)

What is the increased interest rate for savings in Post office in India? 4 percent

Where has the biggest ever diamond unearthed in India?

37.68 carat diamond has been unearthed by NMDC at Panna in Madhya Pradesh

Which country would host 18th SAARC summit in 2012? Nepal

Name the high capacity circuit breaker launched by Siemens recently.

1200-KV SF6 circuit breaker with evacuation capacity of 8000MW

Who has been named Greek interim Prime Minister? Lucas Papademos

Which are the 2 awards or recognitions India bagged at the World Travel Market 2011?

World's Leading Destination and World's Leading Tourist Board award

Who has been appointed as CEO of UBS India? Aashish Kamat

Which fund gets priority from a company under liquidation over repaying loans to secured creditors?

Employees' Provident Fund

Name the latest Sumo variant launched by Tata Motors. Sumo Gold

Which Indian city is set to host the World Economic Forum's India Economic Summit? Mumbai

Which country won the approval to join the World Trade Organisation (WTO) Russia

Who is the first and the only female President of African Country Liberia? Ellen Johnson Sirleaf

Which writer won the 2011 University of Wales Dylan Thomas Prize? Lucy Caldwell

Which agreement has India and Nepal due to sign? DTAA - Double Taxation Avoidance Agreement

Which company recently setup its R and D centre in India for e-commerce solutions? Walmart

Which country has been reinstated to the 2018 FIFA World Cup qualification tournament? Myanmar

At what price the Centre is set to supply rice to all below poverty line families under the proposed Food Security Act? Re.1 per kg

Which Spanish bank is to setup a representative office in India to help Spanish companies to tap into the fast growing Indian economy? Caixabank

Which educational institutes of Britain has introduced Study of Ancient India? Cambridge University

Where is the Robert Bosch Centre for Cyber Physical Systems has been unveiled?

Indian Institute of Science, Bangalore

Which company has been awarded with gold LEEDS certification for its Knowledge Boulevard green building in Noida? 3C Company

Who is the current Managing Director of United India Insurance? Srinivasan.G

Which Indian state will begin anti-measles campaign in association with UNICEF on 18th November?

Jharkand

Which insurance company is eyeing to achieve Rs.8000 crore premium this year?

United India Insurance company limited

Which famous company has stopped development of Flash player for Mobile browsers? Adobe Systems

Which airline has been recently granted license for regional Flights? Karina Airlines

Which group owns Karina Airlines? KRC group

Who is the Managing Director of Karina Airlines? Namrata Chawla

Who has been accused of 17.5 million pound fraud? Kevin Steele (Princess Diana's lawyer)

Which metro city will host India Economic Summit which will start from 12th November? Mumbai

Who has won the Ezhuthachan award (highest literary prize instituted by Kerala Government)?

M.T.Vasudevan Nair

Which country has banned Apple iPhone? Germany

Who has been picked by Force India for Abu Dhabi's young Formula 1 driver test? Max Chilton

Which famous boxer passed away suffering from Liver cancer and was the first boxer to defeat the legend

Mohammed Ali in the year 1971? Joe Frazier

Who is the present chairman of Indian Oil Corporation? RS Butola

Who is the present Prime minister of Japan? Yoshihiko Noda

Where will the Asia Pacific Economic Co-operation summit (APEC 2011) be held? Hawaii

How many member nations does APEC comprise of? 21 countries

Where will the 17th SAARC summit be held on 9th November,2011? Addu Island (Maldives)

How many countries will take part in 17th South Asian Association for Regional Cooperation (SAARC) summit? 8 countries

Which company's figerprint image capture terminal has been approved recently? Morpho

Name the Greek Prime Minister who won confidence vote recently. George Papandreou

In which district of Karnataka would the Biotech Park worth Rs.103.27 crore was approved by cabinet recently?

Mysore

Which sporting event is set to return after a gap of 5 years to Bangalore? National Badminton Championship

When is the Bengaluru International Film Festival is set to be held? December 15th to December 22nd 2011

How many foreign films are to be screened at the Bengaluru International Film Festival? 130

1. Following are the statements about CHOGM 2011:

1) The Commonwealth Heads of Government Meeting 2011, commonly known as CHOGM 2011, was held in Perth, Australia in October 2011.

2) The 22nd Meeting of the Heads of Government of the Commonwealth of Nations was chaired by Julia Gillard, the Prime Minister of Australia.

3) Hamid Ansari, the Vice President, represented India at the Summit.

4) Canadian Prime Minister Stephen Harper had threatened to boycott the 2013 CHOGM, to be held in Sri Lanka, if allegations of human rights abuses against the country's Tamil minority were not investigated.

2. Muammar Qadhafi was killed in October 2011 in his hometown Sirte. He was the former leader of which of the following countries? Libya

3. The Election Commission has disqualified Umlesh Yadav, an MLA from Uttar Pradesh, from contesting again for three years for suppressing expenditure (the amount spent for issuing the advertisements) in her election accounts. She is the first political victim of the paid news phenomenon. She was elected from which of the following political parties? Rashtriya Parivartan Dal

4. Alain Juppe visited India in October 2011. He is the Minister for Foreign Affairs of which of the following countries? France

5. M.K.Mani has been honoured with the 40th Dhanvantari Award. In which of the following fields is this prestigious award given annually? Medical Science

6. The South India's first metro rail service was started in which of the following cities in October 2011? Bangalore

7. Who is the Chairman of the Prime Minister's Economic Advisory Council (PMEAC)? C.Rangarajan

8. Shakti-2011 is a joint army exercise between India and which of the following countries? (It was conducted in Uttarakhand in October 2011) France

9. Who won the National Chess title in Aurangabad in October 2011? Abhijeet Gupta

10. Who has been honoured with the Presidential Citizens Medal by U.S. President Barack Obama for her courage in overcoming and speaking out against domestic abuse in the Indian-American community? Vijaya Emani

11. Which English cricketer is the author of the book 'The Breaks are off-My Autobiography'? Graeme Swann

12. Who made history by winning the inaugural Formula One Indian Grand Prix at the Buddh International Circuit in Greater Noida in October 2011? Sebastian Vettel

13. Who was re-appointed the Commonwealth Secretary- General for four more years in October 2011? Kamalesh Sharma

14. Who received "The Hindu Lite-rary Prize for Best Fiction 2011" for his/her debut novel "The Sly Company of People Who Care" in October 2011? Rahul Bhattacharya

15. Who is the author of the book 'The TCS Story…and Beyond'? S.Ramadorai

16. The National Development Council (NDC) meeting was held in New Delhi recently. Who is the Chairman of the NDC? Manmohan Singh

17. Jigme Khesar Namgyel Wangchuck visited India recently. He is the king of which of the following countries? Bhutan

18. New Zealand won the Rugby World Cup in October 2011 after defeating which of the following countries in the final held in Auckland, New Zealand? France

19. Ellen Johnson Sirleaf is one of the three recipients of the Nobel Peace Prize for 2011. She is the President of which of the following countries? Liberia

20. Who is considered as the father of the white revolution in India? Verghese Kurien

21. Which of the following terms is used in the game of hockey? Penalty Corner

22. Which city hosted the 5th IBSA Summit in October 2011? Pretoria

23. Who among the following leaders did not attend the IBSA Summit in October 2011? Dmitri Medvedev

24. Who among as following has been elected the President of Kyrgyzstan? (He is the present Prime Minister) Almazbek Atambayev

25. Who was presented the Indira Gandhi Award for National Integration 2010 for his yeoman service in promoting and preserving the spirit of national integration on October 31, 2011, the death anniversary of Indira Gandhi? Mohan Dharia

26. Who headed the Committee on direct transfer of subsidies on Kerosene, LPG and Fertilizers to the beneficiaries? Nandan Nilekani

27. Which of the following programmes launched by the Government of India aims at enhancing the Livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household? MGNREGS

28. Which of the following is the period of the first Five Year Plan in India? 1951-56

29. What is the name of the scheme that was launched by the Government of India for adolescent girls in November 2010? SABALA

30. PIIGS is an acronym for nations of which of the following continents? Europe

31. Which bank has taken over the Centurion Bank of Punjab? HDFC Bank

32. Which country is considered as the pioneer of Micro Finance? Bangladesh

2. In the run-up to the free trade agreement between India and the European Union (EU), which of the following subjects has the EU taken up with the World Trade Organisation (WTO) pressing for its inclusion much to India’s discomfort? Intellectual Property Rights

3. Which of the following cities has been declared as the costliest city in the world? Tokyo

4. What is the Minimum Support Price (MSP) per quintal fixed by the Centre for wheat for the season 2010-11? Rs.1,100

5.Who is to take over as non-executive chairman of India’s second largest IT company, Infosys, when the incumbent chairman NR Narayana Murthy retires in August this year? KV Kamath

6 In which of the following countries has Tata Motors launched its Nano cars, touted to be the cheapest car of the world, for the first time outside India? Sri Lanka, Nepal, Indonesia

7. Which f the following business ownership structure companies has been given green signal by the stock market regulator, SEBI, to get membership of stock exchanges and make brokers? Limited liability companies

8.Which of the following teams has won the Santosh Trophy football tournament? West Bengal

9.With which of the trading partners do Indian farm goods face market access problems on the grounds of arbitrary SPS (Sanitary and Phyto-Sanitary) standards and CCC (chemical residues)? ASEAN

10.Indian Railways is to construct the longest tunnel (11km long) on its network in the under-construction railway segments of : Katra-Qazigund Pir Panjal Tunnel

11. There has been stalemate in the drafting committee of Lokpal Bill between the civil activists and political leader over the contents of he Bill. Following are the major bones of contention between the two sides:

I. Inclusion of the office of the Prime Minister under anti-corruption watchdog

II. Bringing higher judiciary under the purview of Lokpal

III. In camera monitoring of the activities of MPs in Parliament.

12. Which of the following teams has recently won the Champions Leagues final at Wembley in London? Barcelona

13.Which of the following countries has recently decided to phase out all it nuclear power plants by 2022? Germany

14.Who has been honoured with the prestigious Jawaharlal Nehru Award for International Understanding for 2009? Angela Merkel

15.G-4 is an alliance of four countries for the purpose of supporting each other’s bid for permanent seat in the United Nations Security Council. Apart from India, which are the other three countries constitution G4?

Brazil, Germany and Japan

16.In which of the following international universities has a chair been instituted in the memory of India’s pioneering development economist, Sanjay Lall? Oxford University

17. Name the new non-linked health insurance plan of the Life Insurance Corporation (LIC) of India which offers comprehensive hospitalization benefits for the whole family and parents-in-law of the principal insured? Jeevan Arogya

18. Who has been nominated for the CK Naidu Lifetime Achievement award? KN Prabhu

19. British - born Sierra Leonean novelist Aminatta Forma won the 2011 Commonwealth Writers’ Prize for which of the following novels? The Memory of Love

20. Which of the following rules has/have not been scrapped by the insurance regulator IRDA?

a) Commission on the sale of ULIP

b) Profitability clause of three years for floating initial public offer (IPOs)

21. Small Industries Development Bank of India (SIDBI) has been operating under SWS. What is the full form of SWS? Single Window Service

22. Which of the following is the target fixed by the 11th five-year plan pertaining to increase literacy, level by the 2012 The level should be increased to : 85%

23. ‘Blue Revolution’ is related to Fisheries

24. Normally two types of factors are responsible for industrial sickness - external and internal. Which of the following is not an internal factor of industrial sickness? Shortage of power

25. Which of the following is an employment - generating scheme? Swarnjayanti Shahri Rozgar Yojana

26. Ethanol - mixed petrol is being sold in various states wef January 1, 2003. The percentage of ethanol in petrol is 5%

27. Which of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India? Services - Industry - Agriculture

28. Which of the following agencies recently laid down guidelines for foreign companies who wish to raise money from the Indian capital markets? SEBI

29. Consider the following statements:

A) The repo rate is the rate at which other banks borrow money from the Reserve Bank of India.

B) A value of one for Gini co-efficient in a country implies that there is perfectly equal income for everyone in

its population.

C) Higher interest rates can make EMIs costly.

30. These days, more and more banks in Indian are setting up their ATMs and discouraging people to visit their branches for transaction. Which of the following is/are the limitations of the ATMs which force people to go to branch for transactions? Limited cash - dispensing ability

31. Which of the following countries has the largest stock of foreign exchange reserves in the world? China

32. Which of the following taxes is exclusively and totally assigned to the state government by the

Constitutions? Sales Tax

33. The tax on import and export is known as Customs duty

34. Which of the following is not an objective of fiscal policy of Indian government?

Regulation of inter-state trade

35. In India, national income is estimated by Central Statistical Organisation

36. Bharat Nirman Scheme of the UPA government does not include: Sarva Shiksha Abhiyan

37. Invisible export means export of: Services

38.A labour-intensive industry is one that : employs more hands

39.In the law of demand, the statement ‘other things remain constant’ means.

a) income of consumer should not change

b) prices of other goods should not change

c) taste of consumer should not change

40. A firm is in equilibrium when its: Marginal cost equals the marginal revenue

41. Bhagyam oil fields which are being explored by Carins India, is located in: Rajasthan

42. In which of the following regions of India has the Archaeological Survey of India (ASI) found evidences of hearths built by cutting natural mountains belonging to periods 3,000 to 4,000 years ago, for the first time?

Ladakh Valley

43. Which of the following famous tabloids of Britain recently ceased its operations after its 168year – long history of scoops and scandals? News of the World

44. Which of the following mobile operators has launched its mobile newspaper, Newswrap, for its customers in Hyderabad? Vodafone

45. Which of the following countries has taken over the rotational presidency of the European Union (EU) on July 1, 2011? Poland

46. Which of the following is the youngest country of the world that has joined the community of nations on July 9, 2011? South Sudan

47. Name the Indian woman athlete who has clinched gold medal in high jump in the Asian Athletic

Championship in Kobe, Japan. Mayookha Johny

48. As on June 30, 2011, which of the following rates stipulated by the Reserve Bank of India (RBI) is the lowest? Repo Rate

49. Consider the following statements about the contentious issues in the upcoming India-EU free trade agreement.

A) Intellectual property should be included in the investment chapter

B) Government procurement policy in agriculture should be kept out of the purview of the agreement.

C) Greater mutual market access for products such as automobiles, liquor, textile and liquor.

50. Which of the following states has unveiled “Vision 2025” containing clear-cut policies for promoting investments in infrastructure such as power, ports, and ship building? Tamil Nadu

1. Cheque facility is not available in ...........? Recurring Account

2. Core banking means ...........? Connectivity of branches, ATM and online systems of all branches

6. Which of the following rate usually not declared by RBI? Base rate

7. In private sector bank, the government may have the stake up to ........... Percent? 49

8. In public sector bank, the government stake must be least ...........percent? 51

9. NEFT rules are:

1) NEFT means National Electronic Fund Transfer

2) Up to 2 lakhs the amount can be transferred

3) Both in Savings and Current Account the funds can be transferred

4) Many private and Public Sector banks offer this facility these days

10. RTGS rules:

1) RTGS means Real Time Gross Settlement

2) Above 2 lakhs the funds can be transferred

3) The charges of RTGS to be paid by the customer

11 All savings bank accounts carry nominee name. A nominee cannot be ...........? Friend

12. On 19 October 2011, Pranab Mukarjee said the Union Government inject the funds in to public sector banks to maintain Tier Capital of ...........percent? 8

14. Negotialble instruments rules and regulations mentioned by ...........? Negotiable instruments Act 1881

15. Usually there are three parties in the case of Cheque. The drawer is ...........? One who writes cheque

16. In the cheques, the drawee is........... ? Bank

17. Drawing two or three lines on the left head of cheque is called ...........? Crossing

18. Crossing means the bank should ...........? Make the payment to payee through account only

19. The cheque bounce due to ...........? Post date written, Lack of funds, Alteration made without signature

22. On 20th October 2011, State Bank of India declared it earned 3.5 NIM in the second quarter. NIM stands for: Net Interest Margin

23. ETF stands for ...........(In these days the people are buying GOLD ETF bonds) Exchange Traded Fund

24. Chairman of the National Advisory Committee on Accounting Standards is ...........? Y.H.Malegam

25. Which financial institute declared October month as Social Security Month? LIC

26. FAO conference on East Africa famine concluded in ...........? Rome

27. UN AIDS ambassador ...........participated in International AIDS conference on 7 Oct 2011 at Moscow?

Preity Zinta

28. Two public sector enterprises applied for the status of Maharatna recently. They are: BHEL,GAIL

29. H- 1 (2011-2012)tax collection increased by (22.1) percent leading the collection to Rs.4,25,712 crores

30. The global economic growth in 2011 will be nearer to ......3..... percent only, compare to 4 percent in 2010?

31.IOC...has introduced the nation's first petrol pump with self service refuelling facility in New Delhi?

36. ...........released $ 1.5 billion aid to Libya on 27 August 2011? UNO

37. Union government sanctioned Rs............crores for tracking cyclones in coastal states? 1500

38. Fast attack warship ........... commissioned in Indian Navy on 26 August 2011? Kaurava

39. The Prime Minister announced the free import of 61 items from Bangladesh. The currency of Bangladesh is...........? Taka

40. Among 28 states in India, 17 states have Lokayukta. The first Lokayukta established in 1970 is: Odisha

41. The Lokayukta who inducted Yedurappa, the chief minister of Karnataka is ...........? Santosh Hegdey

42. The Lokayukta who resigned in Karnataka on the allegations of Land Scam? Justice Sivaraj Patil

43. Recently the inventor of iPad died. He is ...........? Steve Jobs

44. On 17th August 2011, ...........topped as most valuable firm crossing RIL ( Reliance Industries Limited) in market capitalization? Coal India Limited

45. Top three destinations of Indian exports as per e-Bay site? USA,UK and Australia

46. The export promotion scheme 'Focus: LAC' applies to ...........? South America

47. Latest Brand Ambassador of MGNREGA: Sushil Kumar from Bihar (KBC Winner)

Latest Rate from RBI website

Bank Rate 6.0%

Repo Rate 8.50%

Reverse Repo Rate 7.50%

Marginal Standing Facility Rate 9.50%

CRR 6.0%

SLR 24.0%

Base Rate 10.00%-10.75%

Saving Bank Rate 4.0%

Deposit Rate 8.50%-9.25%

BANKING & FINANCIAL TERMS

· Accrued interest: Interest due from issue date or from the last coupon payment date to the settlement date. Accrued interest on bonds must be added to their purchase price.

· Arbitrage: Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.

· Ask Price: The lowest price at which a dealer is willing to sell a given security.

· Asset-Backed Securities (ABS): A type of security that is backed by a pool of bank loans, leases, and other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to mortgage-backed securities.

· At-the-money: The exercise price of a derivative that is closest to the market price of the underlying instrument.

· Basis Point: One hundredth of 1%. A measure normally used in the statement of interest rate e.g., a

change from 5.75% to 5.81% is a change of 6 basis points.

· Bear Markets: Unfavorable markets associated with falling prices and investor pessimism.

· Bid-ask Spread: The difference between a dealer’s bid and ask price.

· Bid Price: The highest price offered by a dealer to purchase a given security.

· Blue Chips: Blue chips are unsurpassed in quality and have a long and stable record of earnings and dividends. They are issued by large and well-established firms that have impeccable financial

credentials.

· Bond: Publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed

amount of principal at maturity.

· Book Value: The amount of stockholders’ equity in a firm equals the amount of the firm’s assets minus the firm’s liabilities and preferred stock. /p>

· Broker: Individuals licensed by stock exchanges to enable investors to buy and sell securities.

· Brokerage Fee: The commission charged by a broker.

· Bull Markets: Favorable markets associated with rising prices and investor optimism.

· Call Option: The right to buy the underlying securities at a specified exercise price on or before a

specified expiration date.

· Callable Bonds: Bonds that give the issuer the right to redeem the bonds before their stated maturity.

· Capital Gain: The amount by which the proceeds from the sale of a capital asset exceed its original

purchase price.

· Capital Markets: The market in which long-term securities such as stocks and bonds are bought and sold.

· Certificate of Deposits (CDs): Savings instrument in which funds must remain on deposit for a

specified period, and premature withdrawals incur interest penalties.

· Closed-end (Mutual) Fund: A fund with a fixed number of shares issued, and all trading is done

between investors in the open market. The share prices are determined by market prices instead of their net asset value.

· Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment

obligation bonds are backed by claims on equipment.

· Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high credit standings.

· Common Stock: Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.

· Compound Interest: Interest paid not only on the initial deposit but also on any interest accumulated from one period to the next.

· Contract Note: A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.

· Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.

· Convertible Bond: A bond with an option, allowing the bondholder to exchange the bond for a

specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.

· Corporate Bond: Long-term debt issued by private corporations.

· Coupon: The feature on a bond that defines the amount of annual interest income.

· Coupon Frequency: The number of coupon payments per year.

· Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.

· Covered Warrants: Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.

· Credit Rating: An assessment of the likelihood of an individual or business being able to meet its

financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the

financial strength of the issuer for investors.

· Currency Board: A monetary system in which the monetary base is fully backed by foreign reserves.

Any changes in the size of the monetary base has to be fully matched by corresponding changes in the foreign reserves.

· Current Yield: A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.

· Custody of Securities: Registration of securities in the name of the person to whom a bank is

accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.

· Default Risk: The possibility that a bond issuer will default ie, fail to repay principal and interest in a timely manner.

· Derivative Call (Put) Warrants: Warrants issued by a third party which grant the holder the right to buy (sell) the shares of a listed company at a specified price.

· Derivative Instrument: Financial instrument whose value depends on the value of another asset.

· Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.

· Diversification: The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.

· Duration: A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.

· Earnings: The total profits of a company after taxation and interest.

· Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated on a per share basis.

· Earnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).

· Equity: Ownership of the company in the form of shares of common stock.

· Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.

· Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.

· Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.

· Fixed-income Securities: Investment vehicles that offer a fixed periodic return.

· Fixed Rate Bonds: Bonds bearing fixed interest payments until maturity date.

· Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.

· Fundamental Analysis: Research to predict stock value that focuses on such determinants as earnings and dividends prospects, expectations for future interest rates and risk evaluation of the firm.

· Future Value: The amount to which a current deposit will grow over a period of time when it is placed in an account paying compound interest.

· Future Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will grow over a period of time when it is placed in an account paying compound interest. · Futures Contract: A commitment to deliver a certain amount of some specified item at some specified date in the future.

· Hedge: A combination of two or more securities into a single investment position for the purpose of

reducing or eliminating risk.

· Income: The amount of money an individual receives in a particular time period.

· Index Fund: A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.

· Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.

· Inside Information: Non-public knowledge about a company possessed by its officers, major owners, or other individuals with privileged access to information.

· Insider Trading: The illegal use of non-public information about a company to make profitable

securities transactions

· Intrinsic Value: The difference of the exercise price over the market price of the underlying asset.

· Investment: A vehicle for funds expected to increase its value and/or generate positive returns.

· Investment Adviser: A person who carries on a business which provides investment advice with respect to securities and is registered with the relevant regulator as an investment adviser.

· IPO price: The price of share set before being traded on the stock exchange. Once the company has

gone Initial Public Offering, the stock price is determined by supply and demand.

· Junk Bond: High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into default.

· Leverage Ratio: Financial ratios that measure the amount of debt being used to support operations and the ability of the firm to service its debt.

· Libor: The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). The LIBOR rate is published daily by the British Banker’s Association and will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.

· Limit Order: An order to buy (sell) securities which specifies the highest (lowest) price at which the order is to be transacted.

· Limited Company: The passive investors in a partnership, who supply most of the capital and have

liability limited to the amount of their capital contributions.

· Liquidity: The ability to convert an investment into cash quickly and with little or no loss in value.

· Listing: Quotation of the Initial Public Offering company’s shares on the stock exchange for public

trading.

· Listing Date: The date on which Initial Public Offering stocks are first traded on the stock exchange by the public

· Margin Call: A notice to a client that it must provide money to satisfy a minimum margin requirement set by an Exchange or by a bank / broking firm.

· Market Capitalization: The product of the number of the company’s outstanding ordinary shares and the market price of each share.

· Market Maker: A dealer who maintains an inventory in one or more stocks and undertakes to make continuous two-sided quotes.

· Market Order: An order to buy or an order to sell securities which is to be executed at the prevailing market price.

· Money Market: Market in which short-term securities are bought and sold.

· Mutual Fund: A company that invests in and professionally manages a diversified portfolio of

securities and sells shares of the portfolio to investors.

· Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.

· Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.

· Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of the issuer.

· Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.

· Open Offer: An offer to current holders of securities to subscribe for securities whether or not in

proportion to their existing holdings.

· Option: A security that gives the holder the right to buy or sell a certain amount of an underlying

financial asset at a specified price for a specified period of time.

· Oversubscribed: When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public’s perception of the business potential of the IPO company.

· Par Bond: A bond selling at par (i.e. at its face value).

· Par Value: The face value of a security.

· Perpetual Bonds: Bonds which have no maturity date.

· Placing: Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.

· Portfolio: A collection of investment vehicles assembled to meet one or more investment goals.

· Preference Shares: A corporate security that pays a fixed dividend each period. It is senior to ordinary shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.

· Premium (Warrants): The difference of the market price of a warrant over its intrinsic value.

· Premium Bond: Bond selling above par.

· Present Value: The amount to which a future deposit will discount back to present when it is

depreciated in an account paying compound interest.

· Present Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest.

· Price/Earnings Ratio (P/E): The measure to determine how the market is pricing the company’s

common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the

market price of its stock.

· Privatization: The sale of government-owned equity in nationalized industry or other commercial

enterprises to private investors.

· Prospectus: A detailed report published by the Initial Public Offering company, which includes all

terms and conditions, application procedures, IPO prices etc, for the IPO

· Put Option: The right to sell the underlying securities at a specified exercise price on of before a

specified expiration date.

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Sunday, 27 November 2011

CURRENT GK FOR CWE

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