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Understanding ETFs Uses, Returns and Comparison with Mutual Funds and Stocks

 Exchange-Traded Funds (ETFs) have gained popularity among investors for their unique features and benefits. In this blog, we'll explore the uses of ETFs, their potential returns, how they differ from mutual funds and stock investments, and their safety profile. What is an ETF? An ETF is a type of investment fund that trades on stock exchanges, much like individual stocks. It holds a collection of assets, such as stocks, bonds, or commodities, and aims to track the performance of a specific index, sector, or asset class. Uses of ETFs Diversification : ETFs allow investors to gain exposure to a wide range of assets without having to purchase each individually. For instance, an ETF tracking the S&P 500 gives you exposure to 500 different stocks, reducing the risk associated with individual stock investments. Cost Efficiency : ETFs often have lower expense ratios compared to mutual funds. They typically pass on lower management costs to investors since they are often passively man
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JAIIB - Principles and Practices of Banking - Practice Set 2



1. RBI is popularly known as a lender ………….
 a) To  central Government
 b) To State Government
 c) Of Foreign Currency
 d) Of the last resort 

 Ans.  Of the last resort

 2. Among the following, which one is not a regulator?
 a) RBI
 b) SEBI
 c) AMFI
 d) IRDA

  Ans.  AMFI

 3. KYC means
 a) Know Your Customer very well
 b) Know Your existing Customer very well
 c) Know Your prospective Customer very well
 d) Satisfy yourselves about the customer’s identity and activity.

  Ans.  Satisfy yourselves about the customer’s identity and activity.

 4. A company which pools money from investors and invests in stocks ,       bonds, share is called
 a) bank
 b) An insurance company
 c) Bancassurance
 d) Mutual Fund

  Ans. Mutual Fund

 5. Bancassurance is
 a) An insurance scheme to insure bank deposits
 b) An insurance scheme to insure bank advances
 c) A composite financial service offering both bank and insurance products
 d) A bank deposit scheme exclusively for employees of insurance companies

  Ans. A composite financial service offering both bank and insurance products


6. A decrease in CRR and SLR will ----the liquidity in the banking system
 a) Decrease
 b) Improve
 c) Not Impact
 d) Decrease and improve respectively

 Ans. Improve

 7. The export credit target for foreign banks in India is ---- of ANBC.
 a) 40%
 b) 32%
 c) 12%
 d) 10%

  Ans. 12%

 8.A micro enterprise in the service sector is one where the investment in   equipment does not exceed
 a) 10 lakh
 b) 20 lakh
 c) 30 lakh
 d) 50 lakh
                  
 Ans. 10 lakh

 9. Due date of cheque dated 20/02/2016 is
 a) 20/08/2016
 b) 20/04/2016
 c) 20/05/2016
 d) None

  Ans. None

 10. Hypothecation is applicable in the case of
 a) Immovable Property
 b) Book Debt
 c) Movable Property
 d) Corporate Guarantee
                  
 Ans. Movable Property

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