What is electronic commerce?
A business model for conducting business over electronic networks like the internet.
Name one type of e-commerce application.
Online retail stores.
What payment method did Yash use for his online purchase?
Credit card.
What borrowing limit should online shoppers use on their cards?
A very low borrowing limit.
What website features should online shoppers check before buying?
The business address, telephone number, privacy policy, lock icon, and https address.
What should ATM users do when entering their PIN?
Cover the keypad while entering the PIN.
What action should ATM users take if their card is retained?
Contact the guard instead of accepting help from a stranger.
Why should users avoid public computers for banking?
Because they are less secure for sensitive transactions.
What software should users keep updated for safe online banking?
Antivirus and anti-malware software.
What should users do with the CVV on their card?
Erase it and store it confidentially.
What should users avoid to protect card credentials?
Disclosing credentials in emails or calls and responding to lottery claims or insecure phone banking.
What is the Reserve Bank of India?
India's apex monetary and banking institution and central bank.
When was the Reserve Bank of India established?
On 1st April 1935.
When was the Reserve Bank of India nationalized?
On 1st January 1949.
Who fully owns the Reserve Bank of India?
The Government of India.
When did SEBI become an autonomous statutory body?
On April 12, 1992.
What is SEBI's mandate?
To protect investors and regulate securities and commodities markets.
Which act governs IRDAI's regulation of insurance?
The IRDAI Act, 1999.
Which act governs PFRDA's regulation of pensions?
The PFRDA Act, 2013.
How does insurance technology improve service?
By using trained staff, integrated systems, cashless claims, web aggregators, mobile tools, and electronic repositories.
What functions does an insurance repository provide to policyholders?
It enables maintaining, storing, retrieving, and modifying e-policies.
What benefits does an insurance repository offer besides policy management?
It improves efficiency and transparency and reduces issuance and maintenance costs.
What is the Integrated Grievance Management System (IGMS)?
An online system for policyholders to register complaints and track their status in real time.
What is insurance?
An arrangement protecting people and assets against risks by pooling contributions.
How do banks differ from insurers in financial roles?
Banks save and build assets through borrowing and lending, insurers provide security via risk pooling and transfer.
What role do life insurers play in the economy?
They invest premiums and provide important long-term capital.
What does non-life insurance protect against?
Losses from events like fire, earthquake, flood, and storm.
When can a policyholder approach the Insurance Ombudsman?
If the insurer does not resolve, resolves unsatisfactorily, or does not respond within 30 days.
What is the maximum individual claim value for approaching the Insurance Ombudsman?
₹20 lakh.
What is the first role of the Insurance Ombudsman in grievance redressal?
To act as a counsellor and mediator.
Within how many months may the Insurance Ombudsman issue an award if no settlement occurs?
Within 3 months.
How long does the insurer have to comply with the Insurance Ombudsman's award?
Within 15 days.
Who is bound by the Insurance Ombudsman's award?
The insurer is bound, but not the policyholder.
What distinguishes the spot market from the forward market?
The spot market involves direct trading, the forward market involves delayed contracts.
What is the delivery and payment timing for a ready delivery contract?
Delivery and payment occur immediately or within 11 days.
When must delivery and payment occur in a forward contract?
Delivery and payment occur after 11 days.
What is a derivative contract?
An enforceable agreement whose value derives from an underlying asset.
How do hedgers use futures contracts?
To manage adverse price risk.
What do speculators accept to seek profit in futures markets?
Market risk without spot-market exposure.
How do arbitrageurs obtain riskless profit in futures markets?
By buying and selling simultaneously in different markets.
What are the two main functions of commodity futures markets?
Price discovery and price risk management.
How many commodities are allowed for futures trading under recognized commodity exchanges?
113 commodities.
What does Gross Domestic Product (GDP) measure?
The total market value of all final goods and services produced in a country in a year.
What is a business cycle?
The fluctuation in economic activity over time with expansions and recessions.
What happens to GDP during economic expansion?
GDP increases during expansion.
How does employment change during a recession?
Employment generally decreases during a recession.
What characterizes industrial production in a recession?
Industrial production declines during a recession.
What is an equity share in a company?
One equal part of the company's total equity capital.
What does the face value of an equity share represent?
The stated value of that share.
What is the market value of a share?
Its current trading price.
What defines a premium on a share?
Amount by which market value exceeds face value.
What is a discount on a share?
Amount by which market value falls below face value.
What is a dividend?
Portion of company profit distributed to shareholders proportionally.
What is an Initial Public Offering (IPO)?
The initial offering of a company's securities to the public to raise money.
Name one step involved in an IPO process.
Selecting a SEBI-registered merchant banker.
What trading facilities do stock exchanges provide?
Shares, derivatives, debentures, and bonds.
Name two major Indian stock exchanges.
Bombay Stock Exchange and National Stock Exchange.
What regulatory role do stock exchanges play?
They impose trading, disclosure, and corporate-governance requirements.
Which authority highly regulates Indian stock exchanges?
SEBI.
How do stock exchanges support the economy?
By raising capital, mobilizing savings, and acting as a barometer.
What happens if stock exchanges do not oversee trading fairly?
Investors lose confidence, reducing investment and economic activity.
Test your knowledge with 29 questions on Financial Literacy and Economic Systems.
1. What best defines electronic commerce?
2. Which activity is an example of an e-commerce application?
Review the complete course in the study sheet for Financial Literacy and Economic Systems.
See study sheet →Import your course and AI generates flashcards in 30 seconds.
Flashcard generator