HARCO Bank Clerk key terms

Interest calculated only on the original principal for the whole period, using the formula P × R × T ÷ 100, where P is principal, R the annual rate percent, and T the time in years.

Interest charged on both the original principal and on interest already accumulated, so the amount grows as P(1 + R/100)^T and exceeds simple interest whenever the period exceeds one year.

The original sum of money lent, borrowed, or invested, on which interest is calculated and which excludes any interest that has accrued over the period.

A ratio compares two quantities of the same kind by division, while a proportion states that two ratios are equal, allowing an unknown share to be found by cross-multiplication.

A fraction or ratio expressed with denominator 100, so that 25 percent means 25 per hundred; used to compare quantities and to compute profit, loss, discount, and interest quickly.

The comparison of selling price with cost price: profit arises when selling price exceeds cost price, loss when it falls short, and both are usually expressed as a percentage of cost price.

A reduction allowed on the marked price of an article, often quoted as a percentage of the marked price; successive discounts are applied one after another on the reduced value, not added together.

The sum of a set of values divided by the number of values; if every item is replaced by this single value, the total remains unchanged, which makes it useful for shortcut calculations.

Distance covered equals speed multiplied by time; when speed is in kilometres per hour, multiply by five-eighteenths to convert to metres per second for problems involving trains or relative motion.

Problems where the total work is treated as one unit: a person finishing work in n days does 1/n of it per day, and rates of workers are added when they work together.

A variation of time and work in which inlet pipes fill a tank and outlet pipes empty it; filling rates are taken as positive and emptying rates as negative when combined.

Permutations count arrangements where order matters, while combinations count selections where order does not; the two are linked because each combination of r items can be arranged in r factorial ways.

The chance of an event, calculated as the number of favourable outcomes divided by the total number of equally likely outcomes, always lying between zero and one inclusive.

A reasoning question giving two or more statements assumed true, from which the candidate must decide whether a conclusion follows necessarily; conclusions that hold in every valid diagram are considered to follow.

A diagram using overlapping circles to show how sets relate, widely used to test whether a syllogistic conclusion is forced by the given statements or only possible in some arrangements.

Reasoning puzzles that describe family links in words or coded symbols, requiring the candidate to build a family tree and identify how two named persons are related.

A question in which words or numbers are written in a disguised pattern, and the candidate must detect the rule, such as letter shifts or reversed alphabets, to encode or decode another word.

A pair-based reasoning item stating that two items share a relationship and asking for a third item related in the same way to a fourth, often using letters, numbers, or words.

A reasoning task listing several items that share a common property, with one item that does not fit; the candidate must identify the exception and the rule the others follow.

A question presenting a sequence of numbers, letters, or figures following a hidden rule, where the candidate must find the missing or next element by identifying that rule.

Problems tracking a person moving in north, south, east, and west turns, requiring a sketch to find the final distance or direction, often using the Pythagorean relation for right-angled paths.

A puzzle placing people in a row or around a circle subject to clues such as who sits next to or opposite whom; candidates draw positions and eliminate possibilities until one arrangement fits every clue.

A set of clues about people, floors, days, or boxes that must be combined into a single consistent arrangement; the questions that follow can be answered only after the arrangement is fixed.

Questions based on a table, bar chart, pie chart, or line graph, where the candidate reads values, computes percentages, averages, or ratios, and selects the answer without needing outside data.

A word having the same or nearly the same meaning as another word in a given context, tested to check the candidate's vocabulary range and sense of nuance.

A word opposite in meaning to another word; the correct choice must contrast with the given word while matching its part of speech and register.

A passage with certain words removed and numbered blanks, each blank to be filled from given options so that the passage reads grammatically and makes coherent sense as a whole.

A question where a sentence is divided into parts and the candidate must find the part containing a grammatical error, such as a subject-verb mismatch, wrong preposition, or tense fault.

A passage followed by questions on its main idea, details, inferences, tone, or vocabulary; answers must be supported by the passage rather than by general knowledge alone.

The rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities; raising it generally makes credit costlier and helps contain inflation.

The rate at which the Reserve Bank of India absorbs surplus liquidity from banks by borrowing from them; it usually sits below the repo rate and forms the lower edge of the liquidity adjustment corridor.

The share of a bank's net demand and time liabilities that must be held as cash with the Reserve Bank of India, earning no interest and reducing the funds available for lending.

The minimum percentage of net demand and time liabilities a bank must hold in safe liquid assets such as government securities, cash, or gold, in addition to its cash reserve with the central bank.

The central bank's management of money supply and interest rates to pursue price stability while supporting growth, carried out mainly through policy rates, reserve ratios, and open market operations.

Purchases and sales of government securities by the central bank in the market to inject or drain liquidity; buying securities adds money to the system, while selling absorbs it.

A loan or advance on which the borrower has stopped paying interest or principal for more than ninety days; such assets weaken a bank's profitability and require provisioning from its earnings.

The amount a bank sets aside from its profits to cover loans expected to turn bad; higher provisions reduce reported profit and are required as asset quality deteriorates.

A scheme giving farmers a revolving credit facility for crop production and allied needs, issued by banks and cooperative institutions; it simplifies short-term farm credit and allows flexible repayment.

A rule requiring banks to direct a specified share of their lending to sectors such as agriculture, micro and small enterprises, education, and weaker sections, which might otherwise receive little credit.

The effort to bring unbanked and underserved people into the formal financial system through basic accounts, small credit, insurance, and digital payments at affordable cost and convenient access.

An Indian instant payment system that lets users send money between bank accounts using a virtual payment address, without entering account details, and is operated by NPCI.

A clearing process in which an image of a cheque, not the paper itself, is transmitted electronically between banks for payment, shortening clearing time and reducing the risk of cheque loss in transit.

The mandatory process by which a bank verifies a customer's identity and address before opening an account or allowing certain transactions, aimed at preventing money laundering and fraud.

Laws and procedures that require financial institutions to detect, report, and prevent the disguising of illegal funds as legitimate income, usually through customer checks and transaction monitoring.

The system software that manages a computer's hardware and provides services to applications, handling memory, files, and input-output; examples include Windows, Linux, and macOS.

A program written to perform a specific task for the user, such as word processing, spreadsheets, or banking software, as distinct from the operating system that runs it.

Software that stores, organises, and retrieves data in structured tables and controls access, so that many users can query and update records without corrupting them.