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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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Sample Questions for CAIIB - Advanced Bank Management - Sample Questions Set 1


1. Net Interest Income (NII) is calculated using the following formula
a) Interest income - Total expenses
b) Total Income - Interest expenses
c) Interest income - Interest expenses
d) Total income - Total expenses

Answer- Interest income - Interest expenses

2. VaR means
a) Volume of Business at Risk
b) Value at Risk
c) Volume on Risk
d) Value as Risk

Answer- Value at Risk

3. The bond prices can be estimated using modified duration. The formula for calculating %age change in price of a bond is
a) Modified duration x yield change
b) Yield change /modified duration
c) Modified duration 1 Yield change
d) Modified duration + Yield change

Answer - Modified duration x yield change

4. Johari Window is most useful for
a) Understanding others
b) Self-Awareness
c) Working in Teams
d) Improving inter-personal relations

Answer - Self-Awareness

5. Orientation Criterion is an exposure to the
a) Group of people
b) Individuals
c) Small business
d) Both b&c

Answer - Both b&c

6. The National Income is equal to
a) GNP- Subsidies –Taxes
b) NNP-Direct taxes+ Subsides
c) NNP- Direct taxes - Subsidies
d) GNP- Subsidies +Taxes

Answer - NNP-Direct taxes+ Subsides

7. Net tax revenue + Total non tax revenue is
a) Capital receipts
b) Total revenue receipts
c) Debt receipts
d) None of these

Answer - Total revenue receipts

8. Which of the following aspects covered under economic feasibility of the project
a) Return on investment
b) Break Even Analysis
c) Marketing arrangements
d) Both a & b

Answer - Both a & b

9. ECGC of India Ltd is a corporation set up by the Government of indfa to encourage exporters & help the Exporting community and the financing bankers to mitigate the risks involved in their business of Exporting. The corporation does so by issue of
a) Financial guarantees to banks
b) Policies to exporters
c) Offering factoring services
d)All of the above

Answer - All of the above

10. YTM of a Bond is also known as
a) Internal rate of return
b) Current yield
c) Net Present Value
d) All of the Above

Answer - Internal rate of return

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