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:

The total sum of the goods and services produced in a country in a year, minus depreciation is called as ________.

A) Net Domestic Product B) Gross National Income
C) Gross Domestic Product D) Net National Product
 
Answer & Explanation Answer: A) Net Domestic Product

Explanation:

Gross Domestic Product : 

It is the total value of all final goods and services produced within the boundary of country during the given period of time. 

Gross National Product :

It is the total value of the total output or production of final goods and services produced by the nationals of a country during a given period of time. 

Gross National Income : 

It is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign residents, minus income earned in the domestic economy by non-residents.

Net National Product :

The total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.

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

14 2903
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 In a demand draft you have to pay before issuing while a check is withdrawn from the account.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 ACH stands for?

Answer

ACH stands for Automated Clearing House, which is an electronic transfer of funds between banks or financial institutions.


 

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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:

In which year SBI was Nationalised ?

A) 1995 B) 1955
C) 1980 D) 1969
 
Answer & Explanation Answer: B) 1955

Explanation:

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them. Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955.

Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.

1955 : Nationalisation of State Bank of India.
1969 : Nationalisation of 14 major banks.
1980 : Nationalisation of seven banks with deposits over 200 crores.

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

4 1542
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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