Viva Question and Answer for IBBL promotion 3

GB & General Knowledge

1. Present Assignment:

I have been assigned to perform the responsibility of Staff Welfare related works, like as  Sanction of Quard against Provident Fund & Benevolent Fund, Works related to Social Security Fund & Gratuity Fund, Works related to Awarding of scholarship from Benevolent Fund, Works related to Awarding of prizes and cash awards to the University Students and meritorious wards of the employees, Works related to Authorized Signature & Power of Attorney and works relating to sanction of Recreation.

2. Islami Bank:

“ Islami Bank is a financial institution whose stateus, rules and procedures expressly state its commitment to the principal of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operation”.

3. Authorized Capital:

The amount of capital  upto which a limited company is authorized to raise its capital as  mentioned in Memorandum of Association filed with the Registrar of Joint Stock Companies. The authorized capital of IBBL is Tk. 1000 crore.

4. Audit: Examination of the books and accounts of a company for a particular period.

5. Bank:  “ Bank is a financial institution. or “ A corporate body or may not be that has been

permitted under licencse from central Bank to accept deposits and carry out other banking business as stipulated in the lincese”.

              

6 Bank Rate: Minimum rate at which central Bank discounts approved securities, bill etc. At present, Bank rate is 5%.

7. Bill of exchange:

It is an instrucment in writing  containing an unconditional order, addressed by one person or concern to another duly signed by the maker directing a certain perosn to pay a certain sum of money only to the oreder or to the beare of the instrument on demand or at a fixed or a determinable future time.

8. Capital :

The owners money in the business. Money and property paid /contributed by the  Spronsotors/partners/owners  in a concern to run/carry its business.

9. Capital Expenditure:

An acquisition or an improvement to a fixed assets /property that will have a life of more  than one year.

10. CAMEL :

A check list for examining a financial  conern

C-Capital adequacy

A-Asset quality

M-Management quality

E-Earnings

L-Liquidity.

11. Collecting Bank :

 The banker  who collects the proceeds of bills cheques, drafts etc.

12. Current Ratio:

The ratio between the current assets and current liabilities .

13. Debt:

Obligation to pay a liability.

14. Debtor :

A person who owes or borrows.

15. Debt Equity Ratio:

Ratio of a company’s ordinary share capital to its fixed interest capital including debevntures loan stock and prefence shares.

16. Deposits:

Current liabilities of a bank in the form of current account fund or money at call, notice or fixed term.

17. Equity:

Part of company’s capital being paid by the share holders

18. Exchage rate:

Value at which one country’s currency can be converted into anothers.

19. First mortgage:

A mortgage that has proority as a first charge or lien over all other mortgage.

20. Guarantee:

An undertaking for payment of a debt or performance of some obligation of the person primarily liable  bnut fails  to perform.

21.Guarantor:

One who under takes the responsiboity that the payment of a debt of another will be fulfilled in case of his defoults

22. Hearing:

It is one kind of strategy used to off set business or investment risk.

23.Mortgage/Lien:

Charge (create right) over property for turning it as a security against  a debt.

24. Liquidity :

 Liquidity is simply a measure of how quickly an item can be converted into cash.

25. Net worth:

Networth of business is calculated by subtracting the(? current liabilites) form total assets after deducting fictitious assets.

26. Pari- passu:

Same  degree of propertion, enjoying same rights equal step, charge on a propety by two or  more banks at a time as security on propertionate basis in called pari-passu charge.

27. Pledge:

Goods kept with the Bank’s custody as security to avail cash credit loan/Murabaha depost of  persoanl property as security for a debt.

28. Promissory Note:

A negotiable instrument, An unconditional promise from one person that is the maker  of the  instrument to pay a certain sum of money to anotehr person or his order or to the bearer on deman at sight or at a fix or at a determinable fix time in future.

29. Put option:

Right to sell a currency or security at a specified price within a certain date.

30. Acid Test Ration/ Quick Ratio:

Cash, Marketable securityies and accounts receivable divided by current liabilites.

31. Rate of return:

Return on invested capital.

32 Redumption:

The exchage of securities for cash or may be for other securities at the time of due date i.e. on redumption.

33. Redeem:

To apy off a laon/investmnt or   a debt.

34. Reserve:

Funds kept aside to meet any unforessen contiongencies.

35. Sell off:

To sell the goods  under pressure to avoid any further decline in price.

36. Statutory Audit:

The audit which reguired by law.

37. Statutory mortgage:

The mortgage created by way of legal prcedure.

38. Syndicate loan:

Very large loan for a single borrower sponsored by several finance  houses or banks for a major project.

39. Write off:

Wiping out bad debts from the profits made by  a concern , to remove an asset from the accounts as having no value.

40. Zakat:

Zakat is  obligatory payment of Islam, who possess a certain limit of wealth & income within one year to pay  certain percentage (2.5%) of it to the poor, needy to free slares and prisoners of war, newly accepted Islam.

41. Accountability:

An obligation to give an account.

42. Agenda:

The list of items to be discussed at a business meeting.

43. Nortizing Loan/Inv: A loan/investment in which the repayment is made in more than one installment.

44. Annuity: A contract in which a peson pays a permium to a company.

45. ATM: Automated Teller Machine: It is computerized machine an orgainzatoin.

46. Auditor: A  person or firm appointed to carryout an audit of an organization.

47. Authorized capital:

A maximum amount of share capital that  may be issued by  a company, as detailed in the company’s memorandum of association.

48. Bad debt:  An amount owned by adebtor that is unlikely to be paid.

49.Business strategy:

An overall strategy for a firm that coordinates the separate functional areas of business. It defines the business objectives, analysis the internal and  external environments and determines the strategic direction of the firm.

50. Capital reserve:

Undistributed profits of a company that for various reasons are nto regared as distributable to share holders as dividends.

51.Census:

An official count of a pppulation for demographic, Social or economic purpose.

52.Central Bank:

A bank that provides financila and Banking services for the govermnet of a country and its commercial banking system as well as implementing the governmnets monetary policy.

53. Charge :

An interest in company property created infavour of a creditor to secure the amount owing.

54. CHAPS:

Clearing Hosue Automatic payment system.

55. CHIPS:

Clearing House Inter Bank Payment System.

56. Cheque:

A cheque is abill of cechage drawn on a specified banker and payable on demand.

57.Collateral:

Security in addition to primary security as  a gurantee of loans/Investments. Mostly these are mortgages of immovable properties.

58.Company:

A corporate enterprise that has legal identify separate from that if its member, it operates as one single unit.

59. Publice Limited Company :

A company which is not private company. It needs minimum seven members and Memorandum and articles of association to be registered. It  must be use the word Ltd. Certificate of incorporation & certificate of  commenment is required.

60. Credit worthiness:

As assessment of a presons or a business ability to pay for goods pruchased or services received.

61. Creditor:

One to whom an  organization or person owners money.

62. Credit rating:

An assessment of the credit worthiness of an invdiviedual or a firm.

63. Debenture:

The most common from of long term loan taken by a company.

64. Debt Equity Ratio:

It is a ratio calculate by share hodlers equity to total  liabilites.

65.Debt-rescheduling or Recheduling:

A negotiation conerning outstanding loans/investmet in  which the debtor has repayment difficulties. The rescheduling can take the form of an  entirely new loan/investment or an extension of the existing laon repayment period deferring inerest or principal repayment.

66. Deed:

A document that has been signed, sealed, stampled deliered.  A document in writhing signed by the concerned parties  evidencing a lawful transaction containing the terms and conditions of the contract.

67. Duble Entry  book keeping:

A method of recording the transaction of a busienss in a set of accouts, such  that  verry  tranction has duel aspect and therefore needs to be recorded in atleast two accounts.

68. Earning retains:

Profit of a company after distribution of dividends.

69. E-mail:

Software that enables messages between individuals or from individeuals to groups to be exchaged by computer.

70. Deprectation:

The dininution in value of  a capitla  asset due to wear and ter or  obsolescence over an accounting period.

71. Endrosement:

A signature on the back of a bill of exchage or cheque making it payable to the person who signed it.

72. Equity:

A beneficial  interest in an assets.

Equity A part  of company’s capital being paid by the share holders.

73. Equitable Mortage:

A mortgage created by a mere deposit of  title deeds relating to the mortgaged property to the creaditors with the interntion to  create a security thereon. Under this mortgage both possession and ownership of the property remains with the borower/debtor.

74. First mortgage/Charge:

A mortgage  that has priority as a first charge or lien over all other mortagage.

75. Floating charge:

A cherag eor lien or  debt over flating assets of the company.

76. Expiry date:

The date on which a contract expires.

77. Extenal Audit:

An audit of an organization caried out by an duditor who is external to, and independent of the organization.

78. FAX:-

A widely used method of communication between business , linked to the internatinal telephone system.

79. Follow-Up:

The last step in the selling process in which the sales person follows by the custoners after the sale to ensure satifsaction and in he hope of  achieving repeat business.

80. Free economy:

An economy in which the market forces of supply and demand control prices, incomes etc. without Government interference.

81. Fungibles:

Interchargieable goods, securityies  etc, that allow one to be replaced by another without loss of value.

82. GAAS:

 Gernerally Accepted Auditing Standards.

83. Globalization:

The process by which the world economy has become dominated by powerful multinatinal enterprises oerating across national and geographical barriers.

84.Guarantor:

A person who guaratees to pay a debt incurred by some one else if that person fails to repay it.

85. Hard Disk:

A type of computer memory that use a rigid magnetic disk enclosed in a sealed container to store information.

86. Hardware:

Electronci and mechanical parts of a computer system.

87. HTML :

Hypoertex Markup Lanuage.

88. Industry:

An orgainzed activity in which capital and labour are utilized to produce goods.

89.Inflation:

A general increase in prices in economy and consequent fall in the purchasing value of money.

90. IPO-:

Initial Public Offering.

91. Internal Audit:

An audit that an organization  carries out on its own behalf, normally to ensure that its own internal controls are operating satisfactory.

92. Internal:

An internatinal net work of computers connected by modems, dedicated lines, telephone  cables and satelite links, with associated software controlling the  movement of data.

93. WWW-

The World Wide Wave  is a multimeda facility allowing pictures, sound and video to be displayed on the screen.

94. Job:

An indentifiable discrete price of workd caried out by an organization.

95. Lien:

The right of the person to retain possession of goods owned by another until the possessor’s claims against the owner have been satisfifed.

96. Litigation:

The taking of legal action.

97. LIBOR-:

London  InterBank Offering Rate.

98. MIGA

Multilateral Investment Guaranty Agency.

99. Net Worth:

The value of an organization when its liabities have been deducted from the vlaue of its assets.

100. On-line:

Connected to a computer or connected to the internal.

101. Owner’s equity:

The funds of an organization that have been provided by its owners.

102.  Paid-up share capital:

The total amount of money that the share holders of a company have paid to the company for their fully paid shares.

103. Pledge:

An article given by a borrower to a lender as security for a debt.

104.  Port-Folio:

A lsit of the loans/investment made by the organization.

105. Public Company (Limited)

A company whose shares are available to he public through a stock exchage.

106. Ration-Analysis:

The use of raties to evalute a companys operating performance and financial  stability.

107. Rebate:

A discount offered on the price of goods or services.

108. Redemptin:

The payent of shares stocks, debentures or bonds.

109 Redemption:

 The exchage of securityes for cash or may be other securities at he time of due date i.e. on redemptin.

 110. Security :

An asset or assets to which a lender can have recourse if the borrower defaults on the loan repayment.

111. Statutory Audit:

An audit  of  a company as required by the company’s act.

112 Syndicated bank facility:

A very large laon made to one borrower by group of banks headed by one lead bank, which usually take only  a small percentage of the loan, itself syndicating the rest to other banks and financial institutions.

113. Project:

A project is a unique venture with a well defined beginning and end. It consists of a set of tasks that are performed in a definite period of time to achieve a specific set of activities.

114. Wakala: Appoint any person to do any work on behalf of the bank or on behalf of the client is called wakala. The appointing authority called muakkil and appointment receivier called wakil.

115. Kafala: A gurantee from any person to pay any liability or any loss created by the investment client this called Kafala.

116. Misr: Means Grabling. An agreement of uncertain to loss for one party and definite gain for the other party without specifying which party will gain and which party will loss.

117. Garar: Sale of a thing which is not present at hand or the sale of a thing whose consequence or outcome is not known or a sale invloving risk or hazard in which one