It is a voluntary
amalgamation of two banks on roughly equal terms into one new legal entity.
2.Write about diversification.
a banks assets(loans)over a wider assortment of quality borrowers,to maintain
or improve earning levels while maintaining of same level of exposure
3.What is volatility
is limited by the fact that not all asset classes or industries or individual
companies move up and down in value at the same time or at the same rate.
4.List out the Benefits of
Lower cost of capital
Increases managerial efficiency
Increase in market power
Reduce earnings volatility
5.write a note on Securities
According to khan it is fixed a market for a long term funds.it focus is on
financing of investments in contrast to
which is the institutional source of working capital finance.
6.list out the regulators of
Department of economic affair(DEA)
Department of company affair(DCA)
7. Write about Day order
buy or sell at a specific price or better,the order expires at the end of the
day unless executed.
8.What is Good till cancelled
orders are must be confirmed semi annually,the dates on which the confirmation
periods end shall be prescribed by the exchange.
9. Write a note on Not held order
of order gives discretion to the floor brokers as to time and price.the floor
broker uses his best judgement concerning the proper time to bid for stock(buy)
or offer stock(sell)during the auction process.
10,Describe the term Participate
but do not initiate(PNI)
customer usually gives this type of order to the broker when she has a large
order to buy or sell.
11.What is Primary market/new
primary market represents the new issue market where new securities.Both new
companies &existing ones can raise capital on the new issue market.
12.Write a note on Secondary
market/ Stock exchange
It is one
important constitute of capital market.stock exchange is an organized market
for purchase &sale of industrial &financial security.
13 What do you meant by
is an agreement entered into before the shares are brought before the public
that in the events of the public not taking up the whole of them the
underwriter will take an allotment of such part of the shares as the public has
not applied for .
14. List out the Types of risks
15.Define mutual fund.
Fund is a trust that pools the savings of a number of investors who share a
common financial goal.The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities.
16.Draw a diagram on Mutual fund
17.Write about Open&closed
Open ended Schemes are schemes which
offers unit for sale without specifying any duration for redemption. They sell
and repurchase schemes on a continuous basis.
Closed ended schemes are the schemes in
which redemption period is specified.Once the units are sold by mutual funds,
then any transaction takes place in secondary market only i.e stock exchange.Price
is determined by forces of market.
18. What is Money market Funds?
market / liquid funds invest in short-term (maturing within one year) interest
bearing debt instruments. These securities are highly liquid and provide safety
of investment, thus making money market / liquid funds the safest investment
option when compared with other mutual fund types.
19.Write about ISS
Industry Specific Schemes invest only in the industries specified in the offer
document. The investment of these funds is limited to specific industries like
Infotech, FMCG, Pharmaceuticals etc
20.What is sectorial funds?
funds are those mutual funds which invest in a particular sector of the market,
e.g. banking, information technology etc.
21.Write a note on insurance.
undertaking by one person to another person against loss or liability for loss
in respect of a certain risk or peril to which the object of the insurance may
be exposed, or to pay a sum of money or other thing of value upon the happening
of a certain event and includes life insurance”.
29.How to calculate CAR?
CAR= tier one capital + tier two capital / risk
30.Write a note on Stress testing
value of a portfolio varies due to movement of market parameters such as
interests rates ,market liquidity, inflation , exchange rate , stock prices ,
31.List out the Techniques of
Simple sensitivity test:- short term
impact of portfolio value.
scenario analysis:- Risk factors
Maximum loss:-identifying the most
potentially damaging combination of moves of market risk factors
32.write a note on bancassurance?
meaning selling the insurance products through banks.banks and insurance come
up in a partnership wherein the bank sells the tied insurance company‟s
insurance products to its clients.