Scribd
Upload
33 views4 pages

Experience - 5 (Finance) PDF

Important

Uploaded by

nnn69369
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
33 views4 pages

Experience - 5 (Finance) PDF

Important

Uploaded by

nnn69369
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Experience 5

Introduction to Financial Services

One word

Ques-1. What is the work that involves money called?


Ans: Financial work.
Ques-2. How many parts of financial activities?
Ans: Four parts.
Ques-3. What is the work of earning money through the sale of goods or services called?
Ans: Income related financial work.
ques-4. What is the work of meeting needs by purchasing goods or services called?
Ans: Expense related financial work.
Ques-5. What is the term for the money kept with us to generate income?
Ans: Investment related financial work.
ques-6. What type of institution is a bank?
Ans: Financial institution.
Ques-7. Which institution accepts savings money as a deposit and gives loans from it?
Ans: Bank.
Ques-8. What is the financial institution that is not formed and governed by the country's
banking laws called?
Ans: Non-bank financial institutions.
Ques-9. Which services facilitate ease of transactions, savings, payments, loans, and
insurance?
Ans: Financial inclusion services.
Ques-10. Through what financial risk is reduced?
Ans: Insurance policy.
Ques-11. Which is called a deed of credit?
Ans: Bond.
Ques-12. Which loan is given for the purchase of fertilizers, seeds necessary for agricultural
work?
Ans: Agricultural loan.
Ques-13. What type of loan is given against education certificate?
Ans: Education loan.
Ques-14. Who does the work of providing security assurance against the loss of human life
and property?
Ans: Insurance.
Ques-15. Which insurance covers financial loss caused by accidents?
Ans: Accident insurance.
Ques-16. Which is the biggest advantage of online banking?
Ans: Indefinite period.
Ques-17. Which specialized bank works to advance the industrial sector of the country?
Ans: Bangladesh Development Bank.
Ques-18. What are the nature of assets of financial institutions?
Ans: Long term.
Ques-19.Which form is used to collect detailed information about the customer?
Ans: KOIC (KYC)
Ques-20. Which loans are provided to low income people?
Ans: Poverty reduction loan.

Short Q/A
Ques-1. What is financial inclusion?
Ans: Financial inclusion refers to having access to essential and affordable financial services,
including savings, loans, remittances, and insurance. In other words, financial inclusion
means individuals or organizations have the ability to participate in various financial
activities without any hindrance. It ensures that people from all backgrounds have access to
necessary financial services. Therefore, services that provide uninterrupted access to all
people are considered financially inclusive services.

Ques-2. What is a bank?


Ans: A bank is a type of financial institution. Banks accept people's savings as deposits. In
return, they provide interest to the depositors. Banks also lend money to individuals and
businesses in need, charging interest on the loans. The difference between the interest earned
on deposits and the interest charged on loans is the primary source of income for banks.

Ques-3. Write the names of four financial service providers.


Ans: Four financial service providers are:
1. Bank
2. Non-bank financial institution
3. Microfinance institution (MFI)
4. Insurance company
Ques-3. How many types of bank accounts are there and what are they?
Ans: There are primarily three types of bank accounts:
Current account
Savings account
Fixed or term deposit account

Ques-4. What is a bond?


Ans: A bond is a type of debt instrument. A company sells bonds to the public or financial
institutions for a specific period of time to raise capital. At the end of the term, the company
repays the bond amount along with interest. Investing in bonds is generally considered low-
risk as the company is obligated to repay the principal and interest.

Ques-5. What are the benefits of taking financially inclusive 'insurance' services?
Ans: The benefits of taking insurance are:
1. Insurance companies generally compensate for financial losses suffered by businessmen or
property owners due to accidents.
2. In case of sudden death, the individual's family receives financial assistance.
3. Life insurance provides a lump sum amount, including accumulated interest/profit, after
specified period. a
4. Various types of protection can be obtained, such as education, health, etc.
Ques-6. What is KYC?
Ans: KYC stands for "Know Your Customer." It's a process used by financial institutions to
verify the identity and information of their customers before opening an account or providing
services. It involves collecting personal information from customers and verifying their
identity through various means. KYC is crucial for banks when considering loan applications.

Broad Q/A
Ques-1. Describe different types of loan services,
Ans: various banks, financial organizations and micro credit institutions give us financial
support through providing us various loan services. They are :
• Current Loans: Current loans are very useful for businesses that regularly buy and sell
various items. This loan service has no specific repayment schedule. However, the
loan has to be cleared at the end of the term.
• Loan for Import-export: Import-export loan is a special type of loan. This loan is
given to traders especially importers and exporters. By taking this loan special
benefits are available in import and export business.
• Term Loan:Term loan is a loan which are given for a prescribed time. Usually, this
loan can be availed for setting agriculture farms, establishing new mills & factories,
building houses, making business infra-structure etc.
• SME & Specialized loan: backward classes, unemployed people, labourers going
abroad and poor community receive financial inclusive loan. These are known as
SME and specialized loans.

Ques-2. To whom are financial inclusion services offered? What is required to accessing this
service? Explain.
Ans: Financial inclusion services are provided to those who-
• All adult (18 years old or above) Bangladeshi citizens.
• People who are genuinely engaged in business or production like farmer, industrial
entrepreneur, shop owner.
• Service providers like hospital, educational institutions, transport service
organizations etc.
• The person who wants to be capable of earning like new entrepreneur,
educated/capable unemployed individuals.
Requirements for accessing the services
• National ID card, photo, and CV
• Legal financial activities
• License or certificate for business
• To some extent security asset (immovable property)
• Personal guarantee
• Business information
• Tax certificate (if applicable)
• To some extent professional certificate etc.

Ques-3. Why is investing in the stock market risky? Describe.


Ans: Share market prices fluctuate due to various factors, which makes investment in share
market risky. By buying shares, investors hope that the value of these share will increase with
the time so that they will be benefitted by selling those or they will get the part of the
company's profit. But the share price of a company is never fixed. At any time, the share
price can decrease or increase. This depends on how well the company is doing financially,
what are the future prospects and what are the overall situations of the share market. As the
positive information about the income or new product of the company may increase the share
value, at the same time negative information about the company can reduce the share price.
So it can be said that investment in share market is more risky.

Situation based Questions


Ques-1. Arif receives his monthly salary in his bank account. With this salary, he carries out
various financial activities related to income, expenses, savings, and investments.
a. Make a list of Arif's possible types of financial activities.
b. Discuss what benefits the bank provides to Arif as a financial service provider.

Ques-2. Arham has been running a business for ten years. Over these ten years, he had
gradually ■ deposited some money in the bank. Suddenly, due to the recession caused by the
COVID-19 pandemic, his business faced a financial shortfall.
a. What kind of benefits is Arham receiving by depositing money in the bank? Explain.
b . How can Arham meet his financial shortfall? Discuss.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy