BankExamsToday Express Bites: Part 30

• Insurance companies collect a fixed amount from its customers at a fixed interval of time, is called premium. 
• The full form of ESOP is Employee Stock Options. 
• When the ATM machine installed in the bank is out of order or computer are not functioning in the bank, it is called as Operational risk. 
• Open price is the price at which a security starts in a trading day. 
• Returned cheque - when we don’t have enough funds in our account to cover a cheque, the bank may decide not to pay the cheque and to return it to the payee, returned item fee charged to our account. 
• Past due- the status of an account when the minimum payment has not been received by the due date. 
• Making partial pre-payment towards the principal of the loan account is called as Part-prepayment. 
• Mixed inflation - Schultz proposed this type of inflation. The features of demand pull and cost push inflation are found in this. 
• Net interest margin is the net interest income divided by average interest earning assets. 
• Repo period - It could be overnight term, open or flexible. Overnight repos last only one day. If the period is fixed and agreed in advance, it is a term repo. 
• Disposable income is the amount of income left after deductions such as income tax, pension contributions and personal insurance. It is often known as ‘take home pay’. 
• P.G. Apte committee is a working group on interest rate options.

Take Quiz 

1. In ESOP, E stands for

a. Employment

b. Employer

c. Employee

d. Employed

2. When the ATM machine installed in the bank is out of order or computer are not functioning in the bank, it is called as

a. default risk

b. operational risk

c. system risk

d. directional risk

3. Who proposed the idea of mixed inflation?

a. Theodore Schultz

b.  Milton Friedman

c. Water Adams

d. Lee J. Alston

4. ____ is often known as ‘take home pay’?

a. Passive income

b. Business income

c. Disposable income

d. Portfolio income

5. P.G. Apte committee is a working group on/for

a. Direct Taxes

b. Public Welfare

c. Wage, Income & Prices

d. Interest rate options

Answers

1. c. Employee

2. b. operational risk

3. a. Theodore Schultz

4. c. Disposable income

5. d. Interest rate options

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