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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

Retail Banking Quiz2

1. For reverse mortgage loans the age of the applicant should be above

   a. 50 yrs
   b. 55 yrs
   c. 60 yrs
   d. 65 yrs

Ans. 60 yrs

2. The maximum period for Reverse mortgage loan is ……

   a. 10 yrs
   b. 15 yrs
   c. 12 yrs
   d. 20 yrs

Ans. 15 yrs

3. Power of attorney should be......
   a. notarised
   b. registered
   c. notarised and registered
   d. notarised or registered

Ans. notarised or registered

4. The Moratorium period in case of housing loan will be

   a. 12 months
   b. Upto 18 months after the disbursal of Ist disbursement of loan
   c. Three months for completed construction.
   d. Both b and c.

Ans. Both b and c.

5. In the credit information report maximum weightage is given to

   a. payment history
   b. length of credit history
   c. amount owed
   d. Both B & c

Ans. payment history

6. Para banking refers to ……

   a. Distribution of life insurance policies
   b. Distribution of non life insurance policies
   c. Distribution of mutual fund schemes
   d. All the above

Ans. All the above

7. What stands for ANBC ?

   a. Automatic national bank credit
   b. Adjusted national branch credit
   c. Automated net bank credit
   d. Adjusted Net Bank Credit

Ans. Adjusted Net Bank Credit

8. Rate of Interest on Priority sector loans is fixed by :

   a. Govt of India
   b. Board of Directors
   c. NABARD only
   d. RBI

Ans. RBI

9. Which of the following is a direct channel but not a remote channel?

   a. ATM
   b. Branch
   c. Mobile Banking
   d. Internet Banking

Ans. Branch

10. What is correct about rate of interest under DRI scheme ?

    a. 5% below base rate
    b. 7% simple
    c. to be decided by Govt of India presently 6%
    d. 4% simple

Ans. 4% simple

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