Bank Interview Questions

Q:

What is Demat Account ?

Answer

The way in which a bank keeps money in a deposit account in the same way the Depository company converts share certificates into electronic form and keep them in a Demat account.


 

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Q:

What is CRR rate?

Answer

CRR or Cash Reverse Ratio is the amount of money that a commercial bank has to keep with the Reserve Bank of India. If the bank increase CRR then the amount with RBI comes down and vice-versa.

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Q:

What is the difference between cheque and Demand Draft?

Answer

A cheque is basically issued by an individual but a draft is issued by a bank. In a demand draft you have to pay before issuing while a check is withdrawn from the account.

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Q:

What is ‘Bill Discount’ ?

Answer

‘Bill Discount’ is a settlement of the bill, where your electricity bill or gas bill is sold to a bank for early payment at less than the face value and the bank will recover the full amount of the bill from you before bill due date. For example, electricity bill for XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to 20% discount to the face value. Here, the bank will buy the electricity bill for $900 whose face value is $1000, now the bank will recover, full amount of bill from the customer i.e $1000. If the customer fails to pay the bill, the bank will put interest on the outstanding bill and ask the customer for the payment.


 

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Q:

What opportunities does a financial downturn present to financiers?

Answer

In a market where the value of assets is falling, known as a bear market, traders might consider taking short positions, that is, borrowing assets they don’t own, selling them, and buying them back to return them at a later date when their price has fallen. Meanwhile, those working in asset management or M&A might consider, or advise clients to consider, snapping up undervalued assets.

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