Showing posts with label banking terms in interview. Show all posts
Showing posts with label banking terms in interview. Show all posts

Saturday, June 22, 2013

banking interview questions and answers




Hedge: A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.
Identification: When a person provides a document to a bank or is being identified by a person, who is known to the bank, it is called identification. Banks ask for identification before paying an order cheque or a demand draft across the counter.
Index Fund:  A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.
Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.

Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.
Fixed-income Securities: Investment vehicles that offer a fixed periodic return.
Bouncing of a cheque: Where the name of the endorsee or transferee is not mentioned on the instrument.
Fixed Rate Bonds:  Bonds bearing fixed interest payments until maturity date.
Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.
Garnishee Order: When a Court directs a bank to attach the funds to the credit of customer's account under provisions of Section 60 of the Code of Civil Procedure, 1908.
General Lien: A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt
Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.


Related posts are