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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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Retail Banking Quiz1

1. Public sector banks in India follow the model of ……

   a. Departmental approach
   b. Strategic Business Unit approach
   c. Integrated approach
   d. all the above

Ans. Departmental approach

2. Securitisation Process involves the following :

   a. The lender first selects the assets they want to securitise.
   b. The issuer (Special Purpose Vehicle) makes payment to the lender       for the loans securitised.
   c. The assets are converted into a pool of securities by the issuer       for the purpose of issuing Pass Through Certificate (PTC) and the       PTCs are sold to other investors who are willing to invest.
   d. All the above.

Ans. All the above.

3. BCSBI codes are reviewed after every …… years.

   a. 2
   b. 3
   c. 4
   d. 5

Ans. 3

4. Returns are more in ……

   a. para banking
   b. corporate banking
   c. Retail Banking
   d. all the above

Ans. Retail Banking

5. By applying Rule 72, rupee will double in 8 years if the rate of    interest is …… % p.a.

   a. 18%
   b. 9%
   c. 8%
   d. 6%

Ans. 9%

6. The form which serves as a data base for cross selling of different    products in banks

   a. account opening form
   b. KYC form
   c. credit card form
   d. none of these

Ans. KY Form

7. Alternet Channels in retail banking refers to ……

   a. ATMs
   b. Internet Banking
   c. Mobile Banking
   d. All the above

Ans. All the above

8. EMI Reset is applicable in case of

   a. Fixed loan borrowers.
   b. Floating rate borrowers
   c. Both A & B
   d. none

Ans. Floating rate borrowers

9. Marketing Mix refers to ……

   a. Product & Price
   b. Promotion & Place
   c. People & Process & Physical evidence
   d. All the above.

Ans. All the above

10. Recovery of loans through Lok Adalats can be resorted to by banks     upto a limit of ……

    a. Rs.2 lacs
    b. Rs.5 lacs
    c. Rs.10 lacs
    d. Rs.20 lacs

Ans. Rs.10 lacs

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