Important VIVA term and Answer

1.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.
2.Financial Inclusion:
Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society.
3.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.
4.Zero-coupon Bond:
Zero coupon Bond is a debt security that doesn't pay interest but is traded at a deep discount rate
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1. Capital budgeting: The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing.
2. Balance sheet: A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time.
3. Oligopoly: A situation in which a particular market is controlled by a small group of firms. An oligopoly is much like a monopoly.
4. Public goods: A product that one individual can consume without reducing its availability to another individual and from which no one is excluded. Economists refer to public goods as "non-rivalrous" and "non-excludable". National defense, sewer systems, public parks and basic television and radio broadcasts could all be considered public goods.
5. Treasury bill: Treasury Bills issued by the government as an important tool of raising public finance with a maturity of less than one year.
6. Bill of exchange: A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.
7. Cartel: An organization created from a formal agreement between a group of producers of a good or service, to regulate supply in an effort to regulate or manipulate prices.
8. Monetary policy: The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).
9. Fiscal policy: In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy.
10. Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.
11. Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country.
Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
12. dear-money policy: A policy in which a government reduces the amount of money being spent in an economy by raising interest rates, making it more expensive to borrow money.
13. Dear money: money which has to be borrowed at a high interest rate, and so restricts expenditure by companies.
14. A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.
15. Call Money: Money loaned by a bank that must be repaid on demand. Unlike a term loan, which has a set maturity and payment schedule, call money does not have to follow a fixed schedule.
16. Money laundering refers to a financial transaction scheme that aims to conceal the identity, source, and destination of illicitly-obtained money.
17. Rate of return: The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.
18. Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
19. In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set
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#Repo rate:
rate at which central bank lends money to the commercial banks in the event of any shortfall of funds.
:-used as controlling inflation.
:-at present repo rate is 6.75%
:-special repo rate is 9.75%
#Reverse repo rate:
rate at which central bank borrows money from commercial banks.
:-used as controlling the money supply.
:-at present reverse repo rate 4.75%
#Cash Reserve Ratio (CRR):
specified minimum fraction of the total deposit of customers which commercial banks have to hold as reserve either in cash or as deposit with central bank.
:-CRR is set according to guide lines of the central bank.
:-at present CRR is 6.5%
#Statutory Liquidity Ratio (SLR):
money of commercial bank needs to preserve in the form of cash, gold or government authorized secuirities (bonds) before providing credit to their own customer.
:-control the expansion of bank credit.
:-at present SLR is 13% for traditional banking, 5.5% for islamic banking, 5% for deposit taker FIs and 2.5% for non-deposit taker FIs.
#Bank rate:
the rate charged by the central bank for lending funds to commercial bank.

:-at present bank rate is 5%.
Two important term:
1.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,Narrow Money=Currency+Notes+Demand deposits.
2.Broad Money: When we added the time deposits into narrow money we get Broad Money.
Therefore, Broad Money=Narrow Money+Time deposit of public with bank
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Money Market: The money market comprises banks and financial institutions as intermediaries, 20 of them are primary dealers in treasury securities. Interbank clean and repo based lending, BB's repo, reverse repo auctions, BB bills auctions, treasury bills auctions are primary operations in the money market, there is also active secondary trade in treasury bills (upto 1 year maturity).

Treasury Bond market: The Taka treasury bond market consists of primary issues of treasury bonds of different maturities (2, 5, 10, 15 and 20 years), and secondary trade therein through primary dealers. 20 banks performing as Primary Dealers participate directly in the primary auctions. Other bank and non bank investors can participate in primary auctions and in secondary trading through their nominated Primary Dealers. Non-resident individual and institutional investors can also participate in primary and secondary market, but only in treasury bonds.

Monthly data on primary and secondary trade volumes in treasury bills and bonds and data on outstanding volume of treasury bonds held by non residents can be accessed at Monthly data of Treasury Bills & Bonds .

Capital market:The primary issues and secondary trading of equity securities of capital market take place through two (02) stock exchanges-Dhaka Stock Exchange and Chittagong Stock Exchange. The instruments in these exchanges are equity securities (shares), debentures and corporate bonds. The capital market is regulated by Bangladesh Securities and Exchange Commission (BSEC).