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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 - Bank Financial Management - Sample Questions Set 4



1. In a rising interest scenario, the risk of erosion of NII is on account of
a) Advances with floating rate of interest and deposits with fixed rate of interest
b) Deposits with floating rates and advances with fixed rates
c) Deposits with floating rates and advances with floating rates
d) Deposits with fixed rates and advances with fixed rates

Answer - Deposits with floating rates and advances with fixed rates

2. UCPDC 600 is Set of rules application to CC transactions
a) Set of Rules having 100 Articles
b) Set of Rules framed by ICC governing LC business globally
c) Set of applicable rules governing LC business in India Only
d) Set of Rules framed by ICC governing LC business globally

Answer - Set of Rules framed by ICC governing LC business globally

3. Who is called as Resident as per FEMA 1999?
a) A person who stayed in India for more than 182 days in the previous financial year
b) A person who stayed in India for minimum 182 days in the previous financial year
c) A person who stayed in India for more than 182 days in the previous calendar year
d) A person who stayed in India for minimum 182 days in the previous calendar year

Answer - A person who stayed in India for more than 182 days in the previous financial year

4. If two investments offer the same expected return,most investor
should prefer the one with variance.
a) Lower
b) Higher
c) Past track record
d) Depending on rating

Answer - Lower

5. FCNR Deposit is
a) Futures contract
b) Option Contract
c) Swap
d) None of these

Answer - Option Contract

6. What type of exchange rate is applied when foreign currency funds from FCNR(B) account are converted to NRE Saving account
a) Bills Buying
b) TT Buying
c) TT Selling
d) None of these

Answer - TT Buying

7. R Return is submitted to RBI on which of the following dates of the month
a) 7th and 21st
b) 15th & last day
c) 10th, 20th and last day
d) None of these

Answer - 15th & last day

8. Physical goods movement in India is regulated by
a) Exim Policy
b) DGFT
c) RBI
d) None of these

Answer - Exim Policy

9. If the strike price is same as the forward rate on start date the option is known as
a) At the money
b) In the Money
c) Out of Money
d) None of these

Answer - At the money


10. Which of the following is not included in Tier I Capital
a) Equity
b) Undisclosed Reserves
c) Disclosed Reserves
d) Both a and b

Answer - Undisclosed Reserves

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