Bank Interview Questions

Q:

Interest is usually associated with

A) doubtful accounts B) bad debts
C) accounts receivable D) notes receivable
 
Answer & Explanation Answer: D) notes receivable

Explanation:

Interest is usually associated with notes receivable.

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Q:

A capital expenditure results in a debit to 

A) an asset account B) a liability account
C) an expense account D) a capital account
 
Answer & Explanation Answer: A) an asset account

Explanation:
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Q:

Automatic stabilizers refer to

A) government spending and taxes that automatically increase or decrease along with the business cycle. B) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
C) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. D) the money supply and interest rates that automatically increase or decrease along with the business cycle.
 
Answer & Explanation Answer: A) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:
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Q:

OMO refers to

Answer

Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

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Q:

Smart money is a term used for

A) Credit cards B) Cash with bank
C) Cash with public D) Internet banking
 
Answer & Explanation Answer: A) Credit cards

Explanation:

Smart money is a term used for credit card.

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Q:

The interest-rate effect suggests that

A) an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending B) an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
C) a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending D) an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending
 
Answer & Explanation Answer: B) an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending

Explanation:

The interest-rate effect suggests that an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.

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Q:

When a debtor owes several debts to a banker and makes a payment, the right of appropriation lies with

A) The Court B) The Banker
C) The Debtor D) All the above
 
Answer & Explanation Answer: C) The Debtor

Explanation:
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Q:

Which of the following is a type of savings vehicle?

A) Checking Account B) Certificate of Deposit
C) Money Market Account D) Both B & C
 
Answer & Explanation Answer: D) Both B & C

Explanation:

Which_of_the_following_is_a_type_of_savings_vehicle1558588145.jpg image

 

A savings vehicle is a bank account that's used to hold your savings.

 

The basic saving vehicles include :

Savings accounts,

Money market accounts,

Certificates of deposit, and

Stock market.

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