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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 2



1. As per Abraham Maslow's motivation theory, the people have needs:
a) 2
b) 3
c) 4
d) 5

Answer - 5

2. Credit risk can be defined as
a) Possible willful default by borrowers in meeting their loan repayment obligations
b) possible genuine inability of the borrowers in meeting their
loan repayment commitments
c) Possibility of loan account becoming NPA
d) All the above

Answer - All the above

3. Macroeconomics deals with
a) Gross Domestic Product
b) Unemployment Rate
c) Price Indices
d) All the above

Answer - All the above

4. Which of the following is not a situation of credit risk
a) Willful default by the borrower in repayment of the loan
b) Inability of the borrower in repayment of the loan due to losses in the business
c) Invocation of guarantee by the beneficiary due to non- compliance by the borrower, on whose behalf the guarantee was issued
d) Fraud committed by a
borrower in connivance with the bank staff, not relating to the loan accounts

Answer - Fraud committed by a
borrower in connivance with the bank staff, not relating to the loan accounts

5. The rate at which the banks park their short term excess liquidity is called
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) Base Rate

Answer - Reverse Repo Rate

6. Sale of security under SARFAESI Act is possible when the possession of security is taken. Before Taking possession, a notice is to be given
a) One Week
b) 30
c) 60
d) At Discretion of Bank

Answer - 60

7. Laissez-faire economy is
a) The extreme case of a market economy
b) The extreme case of Command Economy
c) The extreme case of mixed economy
d) None of these

Answer - The extreme case of a market economy

8. The due date for repayment of a term loan installment expires on feb 10, 2009 but borrower fails to make payment. The account becomes sub
standard wef
a) 13-May-09
b) 12-May-09
c) 11-May-09
d) 10-May-09

Answer - 12-May-09

9. Consumer Price Index measures prices at
a) Wholesale Level
b) Retail Level
c) Producer Level
d) Consumer Level

Answer - Retail Level

10. Business Cycle is also Known as
a) Entrepreneur Cycle
b) Economic Cycle
c) Vicious Circle
d) None of these

Answer - Economic Circle

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