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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 3



1. Which of the following is an basic financial statements
a) Balance Sheet
b) Profit and Loss Account
c) Fund Flow Statement
d) Statement of Bank

Answer - Statement of Bank

2. In a business firm, the assets = capital + liability. It is due to
a) Going Concern Concept
b) Money Measurement Concept
c) Matching Concept
d) Dual Aspect Concept

Answer - Dual Aspect Concept

3. X purchased a Bond with face value of Rs.1000 and coupon of 8% and maturity of 6 years. If YTM is increased by 1%, the change in price of Bond-2 would be

a) Rs.44.83 increase
b) Rs.44.83 decrease
c) Rs.48.33 increase
d) Rs.48.33 decrease

Answer - Rs.44.83 decrease

4. Which of these is a liquidity ratio
a) Quick Ratio
b) DSCR
c) DER
d) Total Liability/Total Net Worth

Answer -  Quick Ratio

5. Net Working Capital Means
a) Total Current Assets - Bank Finance
b) Total Current Assets - Credit from Suppliers
c) Total Current Assets - Total Current Liabilities
d) Short Term Sources brought in by the Promoters

Answer - Total Current Assets - Total Current Liabilities

6. Which of the following is a method of selecting samples from a population
a) Judgement Sampling
b) Random Sampling
c) Probability Sampling
d) a and b

Answer - a and b

7. BPLR stands for
a) Benchmark Prime Lending Rates
b) Benchmark Prime Loan Rates
c) Benchmark Process Lending Rates
d) None of the Above

Answer - Benchmark Prime Lending Rates

8. A person wants to receive Rs.1250 every quarter for 5 years at 12% p.a. rate of interest. How much he should invest now
a) Rs.18969.85
b) Rs.18956.58

c) Rs.18596.85
d) Rs.18695.85

Answer - Rs.18596.85

9. Repayment of house loan installment for a pre-determined period on EMI basis is an example of
a) Single cash flow
b) Annuity
c) Perpetuity
d) None of the Above

Answer - Annuity

10. Which of the following is a feature of a crossed transaction
a) From parents to child and again from parents to child
b) It is undesirable
c) The transaction is blocked
d) All of the above

Answer - All of the above

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