Some Important terms for viva question with answer.

Differences between Banks and Non-bank Financial Institutions:
1.Banks are formed according to banking company act 1991 where NBFIs are formed according to Financial Institutions Act 1993
2.Banks can accept demand deposit where NBFIs can't accept demand deposit.
3.Banks can issue Cheques,Pay Order,Demand Draft. where as NBFIs can't issue Cheques,,Pay Order,Demand Draft.
4.Banks can involve in foreigne exchange financing where NBFIs can't involve in foreign exchange financing.
Differences between Primary Market and Secondary Market:
1.Primary market means market where new securities are issued to the public for the first time for the purpose of obtaining capital where secondary market means market where already issued securities are issued are traded.
2.Primary market example-IPO, Secondary market example-DSE,CSE
3.Company directly invovle in primary market but company directly not invovle in secondary market
Narrow Money: Currency,Notes and demand deposit held with public is called narrow money,Narrow money is the most liquid part of money supply.
Therefore,NarrowMoney=Currency+Notes+Demand deposits.
Broad Money: When we added the time deposits into narrow money we get Broad Money.
Therefore,BroadMoney=Narrow Money+Time deposit of public with bank.
Differences between Debenture and Bond:
1.Bondholders don't receive periodical payment rather get principal plus interest accrued upon the completion of the term where as Deventure holder gets periodical interest.
2. For Debentures there is no need of collateral securities like Bond.
3. Bonds are more secured than Debentures
4. In bankcrupcy, bondholders are paid first but liabilities toward deventureholder is less than bondholder.
Differences between Share and Stock:
Share has face value but stock has no face value.
---Only fully paid up share is called stock.
----Share can't be split off but stock can be split off
Online Banking:
Online Banking is a system which allows anyone,anytime from anywhere to perform banking activities through online.It's 24/7 banking system.
.Financial Inclusion:
Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society.
Green Banking:
Green Banking means promoting environmental friendly practices and reducing carbon footprints from banking activities.Such as using online banking system instead of branch banking system and thus reducing the use of paper.
Zero-coupon Bond:
Zero coupon Bond is a debt security that doesn't pay interest but is traded at a deep discount rate.
Classified Loan:
Any bank loan that is in danger of default is called classified loan.
Fiscal Policy:
The policy formulated by government for revenue collection(Taxation) and expenditure(Spending) to influence the economy is called Fiscal Policy.
Monetary Policy:
Monetary policy is the policy statement of the central bank regarding the supply of money to control price stability.
Soft Currency:
A currency with a value that fluctuates as a result of country's political or economic uncertainty is called soft currency.
Hard Currency:
A currency usually from a highly industrialized country, that is widely accepted around the world as a form of payment for goods and services is called hard currency.
Money Laundering:
Money laundering is the process of making illegally-gained proceeds (i.e., "dirty money") appear legal (i.e., "clean"). Typically, it involves three steps: Placement,Layering,Integration.
Depreciation :
Depreciation is the allocation of acquisition costs of fixed assets to expenses over its entire useful life in a rational and systematic way.
####Call Money: 
Inter bank's short term lending and borrowing is called call money.
#### Memorandum of Association(MOA):
Memorandum of Association is a fundamental document which contains the fundamental rules regarding constitutions and activities of the company.
####Article of Association(AOA)
Article of Association is a subsidiary document which contains rules regarding the internal management systems of the company.
#### Break even point:
Break even point is the level of activity at which the business makes neither a profit nor a loss.
####Clearing House:
Clearing House is an institution where cheques and bills from member banks are exchanged.
####Capital Market:
Capital Market is a market where long term debt and securities are traded. Example: DSE,CSE.
####Money Market: 
Money market is a market that provides short term debt financing and investment.Example: Bank
####Primary Market:
Primary market is a market where new securities are issued to the public for the first time for the purpose of obtaining capital.Example: IPO.
#### Secondary Market:
Secondary market is a market in which previously issued financial instruments such as stocks,shares and bonds are traded I.e. bought and sold.Example: DSE,CSE
####What are the functions of Bangladesh bank?
----Formulation and implementation of monetary and credit policy.
-----Regulations and supervisions of bank and non bank financial institutions
----Management of country's international reserve.
-----Issuence of currency,Notes.
####How Bangladesh bank formulate and implement monetary policy?
--Mainly three ways
----By Changing bank rate.
----By Changing variable reserve ratio.
----Open market operation.
####What is bank rate?
--- The interest rate at which the central bank lends money to the commercial bank.
4. The rate of Bank rate at present?
---5%.
5. Open Market operation, what does it refer?
----It refers to purchase and sales of securities in the open market by the central bank.
####Chaning variable reserve ratio,what does it indicate?
----It refers to the minimum percentage of a bank's total deposits which is required to be kept with the central bank.All banks have to keep with the central bank a certain percentage of their deposits in the form of CRR.
####What is CRR?
-----Cash Reserve Ratio(CRR) is the minimum percentage of bank's total deposits that must be kept in central bank
#### Rate of CRR at present?
----6.5% for both Traditional and Islami bank
####How inflations are controlled?
Inflation can be controlled by following ways------- 1. Monetary policy – One popular method of controlling inflation is through contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.
2. Control of money supply – Monetarists argue there is a close link between the money supply and inflation, therefore controlling money supply can control inflation.
3. Fiscal Policy: A higher rate of income tax could reduce spending and inflationary pressures.
4.Wage controls. Trying to control wages could, in theory, help to reduce inflationary pressures.
###Difference between Memorandum of Association and Articles of Association(AOA)
-----Memorandum of Association(MOA) is a fundamental document which contains the fundamental rules regarding constitutions and activities of the company where Article of Association(AOA)
Article of Association is a subsidiary document which contains rules regarding the internal management systems of the coompany.
-------MOA can't be altered without approval of central government where AOA can be altered by passing special resolution.
------MOA includes power and objectives of the company where AOA includes internal management systems of the company.
####Difference between classified balance sheet and unclassified balance sheet?
A classified balance sheet is a balance sheet which separates the assets and liabilities of the company into current and long-term classes where An unclassified balance sheet reports assets and liabilities, but does not separate the items into classes