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Q:

# What is the difference between Private bank and Nationalized bank?

Q:

What is true about certificates of deposit?

 A) the money has to remain in the account for a specified period of time B) they are the most liquid account available C) they offer lower interest rates than savings accounts D) All the above

Answer & Explanation Answer: A) the money has to remain in the account for a specified period of time

Explanation:

A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.

CD's are generally issued by commercial banks

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

What is an example of an inflation risk?

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

HOW IT WORKS (EXAMPLE):

For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every$1,000 produced by the portfolio will only be worth $970 next year and about$940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

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Q:

In preparing a bank reconciliation, outstanding checks are

 A) Deducted from the balance sheet B) Added to the bank balance C) Deducted from the bank balance D) Added to the balance sheet

Explanation:

If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding checks.

If an outstanding check of the previous month does not clear the bank in the current month, the check will remain on the list of outstanding checks until the month that it does clear the bank.

In the bank reconciliation process, the total amount of the outstanding checks is deducted from the balance appearing on the bank statement.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Reconciling the bank statement monthly is an example of

 A) establishment of responsibility B) independent internal verification C) documentation procedures D) segregation of duties

Explanation:

Reconciling the bank statement monthly is an example of independent internal verification

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

The yield to maturity on a discount bond is

 A) equal to both the coupon rate / current yeild B) less than the current yeild but greater than the coupon rate C) greater than both the coupon rate / current yeild D) equal to the current yeild but greater than the coupon rate

Answer & Explanation Answer: A) equal to both the coupon rate / current yeild

Explanation:

Yield to maturity is a concept for fixed rate bonds and is the internal rate of return i.e. the rate at which future flows are discounted on a compound basis to give the present value of the bond including accrued interest.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Tally package is developed by

 A) Tally Solutions B) Coral Softwares C) Vedika Softwares D) Peutronics

Explanation:

Tally package is developed by Tally Solutions.

Tally Solutions, then known as Peutronics, was co-founded in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 105
Q:

When referring to student loans what is a grace period?

 A) 6 months B) 12 months C) 18 months D) 24 months

Explanation:

6 months after graduating or quitting school when you have to start paying back the loans.

A grace period is one term that’s provided for student loans that allow you to delay payments up to a certain length of time, without penalty. During a grace period no late charges would apply, and the loan would not risk falling into default for missed payments. The grace period allows you time to find financial stability prior to having to make payments on your student loans.

Many students use student loans to help pay for their college expenses, including tuition, books, room and board, and other living expenses. Students are expected to repay these loans when they graduate.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 127
Q:

How can investors receive compounding returns?

 A) By investing their earnings back into their original investment B) By diversifying their investment portfolio C) By selecting a savings account that has a higher interest rate D) By transferring their earnings back into high-risk investment

Answer & Explanation Answer: A) By investing their earnings back into their original investment

Explanation: