1.

Treasury Management: The art of managing, within the acceptable level of risk, the
consolidated fund of the bank optimally and profitably is called Treasury Management.

2 Certificates of Deposits: A CD is a product offered by banks and credit unions that provides an
interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit
untouched for a predetermined period.
3. Commercial Paper: Commercial paper is a commonly used type of unsecured, short-term debt
instrument issued by corporations, typically used for the financing of payroll, accounts payable
and inventories and meeting other short-term liabilities.
4.Inter-bank Participation Certificates: In case of IBPC the borrowing bank passes/ sells on the
loans and credit[ maximum 40% of the amount outstanding or limit sanctioned whichever is
lower] that it has its book, for a temporary period [maximum 180 days], to the lending bank.
5. Reverse Repos: A Reverse Repo is the purchase of securities with the agreement to sell them
at a higher price at a specific future date
6. SLR Bonds: It is the percentage of total deposits that banks have to invest in government
securities or bonds.
7. Non-SLR Bonds: The investors do not enjoy a secured risk-free return unlike the SLR
investments.
8. Private Placements: A private placement is a sale of stock shares or bonds to pre-selected
investors and institutions rather than on the open market.
9. Interest rate SWAPS: It involves the exchange of a fixed interest rate for a floating rate to
reduce or increase exposure to fluctuations in interest rates
10. Forward rate agreement: An FRA cash-settled OTC contract between two counterparties,
where the buyer is borrowing a notional sum at a fixed interest rate for a specified period starting
at an agreed date in the future
11. Interest rate futures: An interest rate future is a financial derivative that allows the holder to
benefit from changes in interest rates
12. Interest rate options: An interest rate option is a derivative that gives the holder the right, but
not the obligation, to pay a fixed rate and to receive a variable rate for a specified period and
13. Currency options: A currency option is a contract that gives the buyer the right, but not the
obligation, to buy or sell a certain currency at a specified exchange rate or before a specified
date.
14. Derivative: A derivative is a contract between two or more parties whose value is based on
an agreed upon underlying asset ( like an index) or set of assets (like an index).
15. Forward Contracts: Purchase and sale of underlying asset ( stocks, fixed income instruments
and rates, currencies, commodities, etc ) at a later at a price agreed upon today.
16. Options: An option is the right to either to buy or sell something at a set price, within a set
period of time.
17. Call Option: It allows the holder to buy the asset at a stated price within a specific timeframe.
18. Put Option: It allows the holder to sell the asset at a stated price within a specific timeframe.
19. Futures Contracts: It involves a promise to exchange a product for cash by a set delivery
date. (details required)
20. Difference Between Futures and Forwards:

Futures Forwards
Futures are traded on Forwards are traded over-the-
exchanges counter market (OTC)
Futures contracts are settled Forwards are settled once at
on daily basis the end of the contract
Standardized Contract Customized contract

21. Collateral
The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may
take the form of real estate or other kinds of assets, depending on the purpose of the loan. The
collateral acts as a form of protection for the lender. That is, if the borrower defaults on their
loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses

22. What is leveraged buyout?

A leveraged buyout (LBO) is the acquisition of another company using a significant amount

of borrowed money to meet the cost of acquisition. 

23. What Is a Takeover?

A takeover occurs when one company makes a successful bid to assume control of or acquire
another.