Bank Interview Questions

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:
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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 ‘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:

Which Bank has acquired payments wallet Freecharge for Rs. 373 crore in an all-cash deal ?

A) HDFC Bank B) Karnataka Bank
C) ICICI Bank D) Axis Bank
 
Answer & Explanation Answer: D) Axis Bank

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

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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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Q:

Loan and Advances of a bank come under the category of______________.

A) Deposits B) Expenditure
C) Liabilities D) Assets
 
Answer & Explanation Answer: D) Assets

Explanation:
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Q:

What is ILOC (Irrevocable Letter Of Credit) ?

Answer

It is a letter of credit or a contractual agreement between financial institute (Bank) and the party to which the letter is handed. The ILOC letter cannot be cancelled under any circumstance and, guarantees the payment to the party. It requires the bank to pay against the drafts meeting all the terms of ILOC. It is valid upto the stated period of time. For example, if a small business wanted to contract with an overseas supplier for a specified item they would come to an agreement on the terms of the sale like quality standards and pricing, and ask their respective banks to open a letter of credit for the transaction. The buyer’s bank would forward the letter of credit to the seller’s bank, where the payment terms would be finalized and the shipment would be made.

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Q:

 Which is the largest foreign bank in India   ?

A) HDFC Bank B) American Express Bank Ltd
C) DBS Bank Ltd D) Standard Chartered Bank
 
Answer & Explanation Answer: D) Standard Chartered Bank

Explanation:

Standard Chartered Bank 
Standard Chartered Bank have been operating in India since 1858.

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

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Q:

What is overdraft protection?

Answer

Overdraft protection is a service that is provided by a bank to their customer. For instance, if you are holding two accounts, saving and credit account, in the same bank. Now if one of your accounts does not have enough cash to process the cheques, or to cover the purchases. The bank will transfer money from one account to another account, which does not have cash so to prevent check return or to clear your shopping or electricity bills.

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