Explain our business model.

Correct Answer: Much of your answer to this question will depend on your role ? so do some careful research into your chosen department In M&A, you might spend much of your time on financial models related to the deals you?re working on, while in a trading role you might start out by assisting more senior members of the team before being given the chance to manage a trading book yourself Beyond that, it?s important to show that you?ll be keen to take on responsibilities, but that you also recognise that your first year is about learning the ropes, usually means include following instructions from others and completing some mundane tasks

Correct Answer: As you?re interested in a career in banking, plenty of reasons should spring to mind, and if they don?t you should consider choosing another path! Often students are attracted to the intellectual challenges and high-profile nature of the dealings of the finance world, the fast pace of the work here, and the rewards on offer, all of which are very valid reasons for applying to a bank But they?re also valid reasons for applying for jobs in other parts of the finance world, so make sure you explain why you want a job at a bank, and in your chosen area in particular Perhaps you?re keen for the broad and deep financial training and prestigious experience that only a leading bank can offer? Your interviewers may also ask if anything puts you off banking If you have any real doubts, an interview is not the place to air them, but it?s a great idea to show that you?ve considered the difficulties the industry is currently going through before choosing to make an application You might say that you?re attracted to the particular professional challenges and opportunities a period of flux in an industry can offer

Correct Answer: Nationalized banks are also known as public sector banks where the government is responsible for the deposition of money in these banks while in a private bank money is deposited by the person who owns the bank

Correct Answer: A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public

Correct Answer: Accounts Receivable

Correct Answer: The advantage of equity finance for a company ? raising money by selling shares ? is that this money does not have to be repaid However, new shareholders usually get to have a say in how the company is run Despite these rights, equity is often seen as a risky choice for investors as they will lose all their money if the company doesn?t prosper If it does well, on the other hand, they may see their stake multiply in value many times over Debt finance ? money raised through loans ? must be repaid eventually by a company, usually with interest, but lenders won?t be able to exert as much influence as shareholders over how the company does business The debt of a reliable company is usually seen as a safe investment, but fixed repayment schedules means that there are few opportunities for large returns

Correct Answer: Bank Rate is the interest rate at which the RBI allows finance to commercial banks By Bank Rate, we mean bank can regulate the level of economic activity

Correct Answer: a) Checking Account: You can access the account as the saving account but, unlike saving account, you cannot earn interest on this account The benefit of this account is that there is no limit for withdrawal b) Saving Account: You can save your money in such account and also earn interest on it The number of withdrawal is limited and need to maintain the minimum amount of balance in the account to remain active c) Money Market Account: This account gives benefits of both saving and checking accounts You can withdraw the amount and yet you can earn higher interest on it This account can be opened with a minimum balance d) CD (Certificate of Deposits) Account: In such account you have to deposit your money for the fixed period of time (5-7 years), and you will earn the interest on it The rate of interest is decided by the bank, and you cannot withdraw the funds until the fixed period expires

Correct 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

Correct Answer: The repayment of the loan by instalment to cover principal amount with interest is known as ?Amortization?