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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 4

1. Which regulator regulates insurance business
   a) IRDA
   b) AMFI
   c) SEBI
   d) RBI

    Ans. IRDA

 2. Bank rate is the rate at which
   a) Commercial banks lend to borrowers
   b) RBI lends to banks
   c) Term lending institution lend to borrowers
   d) Scheduled banks accept deposits

    Ans. RBI lends to banks

 3. In which payment system, payment instructions are processed on a continuous basis
   a) NEFT
   b) RTGS
   c) ATM
   d) POS

    Ans. RTGS

 4. A Corp loan granted for short term is treated as NPA, if installments of principal or interest thereon remain overdue for --crop seasons
   a) One
   b) Two
   c) Three
   d) Four

    Ans. Two

 5. Term 'Credit Management' covers
   a) Asset/Laibility Management
   b) Credit Appraisal
   c) Risk Management
   d) All of the above

    Ans. All of the above

 6. Which section of RBI Act, 1934, gives sole power to RBI to issue currency notes
   a) 10
   b) 18
   c) 22
   d) 26

    Ans. 22

 7. Which one is not Public Sector Banks
   a) State Bank of Mysore
   b) RRB sponsored by Nationalised Bank
   c) Indian Overseas Bank
   d) HDFC Bank

    Ans. HDFC Bank

 8. Which instrument comes as a protection for the Importer/Exporter?
   a) Factoring
   b) Guarantees issued by Banks
   c) Letter of Credit
   d) Deferred Payment Guarantee

    Ans. Letter of Credit

 9. A customer deposits some shares, cash and jewellery in the safe deposit locker of a bank.Here role of the bank is
  a) Depositor
  b) Drawee
  c) Lessor
  d) Debtor

   Ans. Lessor 

 10. If the distance between two branches offices of a bank is 500 meters. Which type of network will be used between these two?
  a) WAN
  b) MAN
  C) LAN
  d) FTP

   Ans. LAN

JAIIB - Principles and Practices of Banking - Practice Set 1

JAIIB - Principles and Practices of Banking - Practice Set 2

JAIIB - Principles and Practices of Banking - Practice Set 3


JAIIB - Principles and Practices of Banking - Practice Set 5

JAIIB - Principles and Practices of Banking - Practice Set 6

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