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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Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

2 2131
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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Subject: Bank Interview Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 2069
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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Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

0 2036
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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Exam Prep: CAT , Bank Exams , AIEEE
Job Role: Bank PO , Bank Clerk , Analyst

0 2029
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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Exam Prep: AIEEE , Bank Exams , CAT
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0 2024
Q:

A debit may signify an

A) Increase in asset account B) Decrease in asset account
C) Increase in liability account D) Increase in capital account
 
Answer & Explanation Answer: A) Increase in asset account

Explanation:

A debit can signify an increase in asset, an expense, and the owner's drawings. A debit can also signify a decrease in a liability, revenues and owner's equity.

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Exam Prep: Bank Exams

3 1995
Q:

The reserves of a commercial bank consist of

A) the bank's net worth B) the amount of money market funds it holds
C) government securities that the bank holds D) deposits at the Federal Reserve Bank and vault cash
 
Answer & Explanation Answer: D) deposits at the Federal Reserve Bank and vault cash

Explanation:
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Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1990
Q:

What is an example of an inflation risk?

Answer

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.


 


HOW IT WORKS (EXAMPLE):



For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

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Subject: Bank Interview Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 1989