Interview Questions.

Top 100+ Financial Services Interview Questions And Answers

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Top 100+ Financial Services Interview Questions And Answers

Question 1. State The Types Of Lease In Financial Services?

Answer :

Capital lease
Operating rent
Sale and lease back
Leveraged hire
International rent
Domestic hire 
Question 2. What Is The Meaning Of Mergers?

Answer :

Merger refers to combining of  or extra enterprise and forming new company. Two or extra corporation merge to shape one new corporation is referred to as as merger. 

Financial Reporting and Analysis Interview Questions
Question 3. State The Types Of International Factoring?

Answer :

Single or direct factoring machine
Direct export factoring
Direct import factoring
Back to again factoring 
Question 4. State The Types Of Merger?

Answer :

Horizontal Merger
Vertical Merger
Conglomerate Merger
Acquisition
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Question 5. State The Disadvantages Of Hire Purchase System?

Answer :

Ownership of asset is transferred handiest after the fee of the ultimate installment.
The value of funds concerned in lease purchase are very small and only small styles of property like workplace device's, cars, etc., are bought through it.
The cost of financing via hire buy could be very excessive.
Financial Management Interview Questions
Question 6. What Is Meant By The Term "economic Services"?

Answer :

Financial Services is a time period used to consult the offerings furnished by the finance . Financial Services is also the term used to explain groups that cope with the control of money. Examples are the Banks, funding banks, insurance agencies, credit card businesses and inventory brokerages.

Question 7. State The Benefits Of Factoring?

Answer :

Facilitate liquidity
Reduces the danger
Expertise services
Maximize profitability
Time saving 
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Question eight. Describe The Purpose Of Housing Finance?

Answer :

The motive of a housing finance system is to provide the price range which domestic-shoppers want to buy their houses. This is a simple goal, and the quantity of approaches wherein it may be achieved is limited. Notwithstanding this primary simplicity, in some of countries, largely due to authorities motion, very complex housing finance structures have been evolved. However, the essential characteristic of any machine, that is, the potential to channel the finances of buyers to those shopping their homes, need to continue to be.

Question nine. A one hundred twenty Load Is Connected Across A Voltage Source With Vs = 12 V And Rs = 8 . The Voltage Across The Load Is A. 11.25 V B. Zero V C. 12 V D. 1.13 V ?

Answer :

The forms of Domestic factoring are discussed beneath:

Recourse Factoring
Non-Recourse Factoring
Advance Factoring
Confidential and Undisclosed Factoring
Maturity Factoring.
Supplier Guarantee Factoring
Bank Participation Factoring 
Stock Market Interview Questions
Question 10. State The Difference Between Bill Of Exchange And Factoring?

Answer :

Bill discounting is constantly of recourse type while factoring may be both without or with recourse. In case of recourse the factor does now not count on the credit score danger and it's far the business enterprise which assumes the credit score threat. 
Factoring is an off balance sheet entry within the sense that each quantity of receivables and bank credit score are not proven within the balance sheet which is not the case with the bill discounting which is proven in the stability sheet.
In bill discounting there may be only provision of finance even as in factoring component offers further to finance facility different centers like income ledger preservation, series and many others..
Discounted payments can be re-discounted numerous instances before they mature for charge which isn't the case with factoring.
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Question eleven. What Factors Go Into Designing The Vapor Space Of Kettle Type Reboiler?

Answer :

Lease is a economic agreement among the enterprise purchaser (person) and the device supplier (normally proprietor) for the use of a selected asset/system over a time frame in opposition to the periodic payments known as Lease rentals.

Hire Purchase is a sort of installment purchase wherein the businessman (hirer) is of the same opinion to pay the value of the system in exceptional installments over a period of time. This installment covers the primary amount and the interest value towards the acquisition of an asset for the duration the asset is utilized.

Capital Market Interview Questions
Question 12. What Is The Meaning Of Fee Based Financial Services?

Answer :

Financial services may be described as the goods and services supplied by institutions like banks of numerous types for the facilitation of diverse monetary transactions and different related sports inside the world of finance like loans, insurance, credit score cards, funding possibilities and money management in addition to providing statistics on the inventory  and other problems like  trends. Fee primarily based financial services are the ones which are paid for a flat price rather than commission.

Financial Reporting and Analysis Interview Questions
Question thirteen. What Is The Meaning Of Venture Capital?

Answer :

Venture capital is financing that buyers offer to begin up businesses and small organizations which are believed to have lengthy-time period increase capability. For begin u.S.A.Without get admission to to capital s, challenge capital is an important supply of money. Risk is generally high for investors, however the disadvantage for the start up is that those assignment capitalists typically get a say in enterprise selections.

Question 14. What Is The Difference Between Mergers And Acquisition?

Answer :

A merger takes place when  corporations, generally same in size determine to preserve commercial enterprise as a unmarried firm instead of being owned and operate as separate entities. In order for a merger to manifest, each businesses must give up their shares so that a brand new enterprise may be shaped and new stock can be issued.

In an acquisition, one organization will buy the other. In an acquisition, the company that acquires the goal agency will be entitled to goal business enterprise's all the belongings, residences, device, workplaces, patents, emblems, and many others. The acquirer will both pay in coins to acquire the company or offer stocks in the acquirer's company as compensation. 

Question 15. State The Demerits Of Mergers And Acquisitions?

Answer :

Rationalization of your stability sheet
Securing financing at prevailing  interest prices
Achieving bendy terms that meet the requirements of your cash drift plan, and so forth.
Managing your finances efficaciously
Unifying the phrases of transactions with economic establishments
Securing liquidity
Business Investments Interview Questions
Question 16. What Is The Meaning Of Loan?

Answer :

An association wherein a lender gives cash or assets to a borrower, and the borrower is of the same opinion to return the belongings or repay the cash, normally along with hobby, at a few future point in time. Usually, there may be a predetermined time for repaying a loan, and typically the lender has to undergo the hazard that the borrower may not repay a loan.

Question 17. What Is The Meaning Of Forfeiting?

Answer :

Method of export alternate financing, especially while dealing in capital goods or with excessive danger countries. In forfeiting, a financial institution advances cash to an exporter against invoices or promissory notes assured by using the importer's bank. The quantity advanced is constantly 'with out recourse' to the exporter, and is much less than the bill or note quantity as it's far discounted with the aid of the bank. The discount rates relies upon on the phrases of the invoice/notice and the level of the associated threat.

Financial Analyst Interview Questions
Question 18. What Are Some Good Strategies For Curing Tube Vibration In Shell And Tube Exchangers?

Answer :

Financing of an asset via lease purchase could be very clean.
Hire customer will become the owner of the asset in destiny.
Hire purchaser receives the benefit of depreciation on asset employed via him/her.
Hire clients also experience the tax advantage at the interest payable through them.
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Question 19. What Is The Meaning Of Bills?

Answer :

A bill is a promissory observe drawn by way of seller from buyer which undertakes liability to pay sure amount to bearer or distinctive individual on or after adulthood period.

Question 20. State The De-deserves Of Factoring?

Answer :

It could be very costly.
In factoring there are 3 parties: The dealer, the debtor and the component.
It enables to generate a direct influx of cash.
Here the total legal responsibility of debtor has been assumed with the aid of the issue.
Factor has the right to take any felony movement required to recover the debts. 
Financial Advisor Interview Questions
Question 21. What Is A Lease Agreement?

Answer :

Written or implied contract by which an owner of a selected asset inclusive of a parcel of land, building, system, or machinery offers a 2d celebration the proper to its unique possession and use for a particular duration and beneath precise situations, in return for precise periodic condo or rent bills.

Question 22. What Are Some Of The Consequences Of An Undersized Kettle Type Reboiler?

Answer :

The lease purchaser will become the proprietor of the asset after paying the remaining instalment.
Every instalment is handled as lease charge for the usage of the asset.
Hire patron can use the asset right after making the settlement with the lease dealer.
The lease vendor has the proper to repossess the asset in case of difficulties in obtaining the price of instalment.
Question 23. What Is The Meaning Of Factoring?

Answer :

Factoring is a financial transaction and a type of debtor finance in which a business sells its money owed receivable (i.E., invoices) to a third celebration (called a aspect) at a reduction. A commercial enterprise will once in a while component its receivable belongings to meet its gift and instantaneous coins desires. Forfaiting is a factoring arrangement used in global exchange finance by means of exporters who wish to promote their receivables to a forfaiter. Factoring is generally known as money owed receivable factoring, bill factoring, and sometimes bills receivable financing.

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Question 24. What Is The Meaning Of Housing Finance?

Answer :

Housing finance brings collectively complicated and multi-area problems which are pushed with the aid of constantly changing neighborhood functions, inclusive of a rustic's criminal surroundings or subculture, monetary make-up, regulatory environment, or political gadget.

Financial Services Marketing Interview Questions
Question 25. State The Parties To Loan Syndication?

Answer :

Borrower
Lead arranger
Agent
Participating Bank
Question 26. What Is The Meaning Of Portfolio Management?

Answer :

The art of choosing the proper investment coverage for the individuals in phrases of minimal risk and most go back is known as as portfolio control.

Portfolio management refers to coping with an person's investments in the shape of bonds, stocks, coins, mutual budget and so on in order that he earns the maximum earnings inside the stipulated time frame. Portfolio control refers to managing cash of an character below the expert steerage of portfolio managers.

Fixed Deposit Interview Questions
Question 27. What Is The Meaning Of Domestic Factoring?

Answer :

Domestic factoring means purchase, investment, management and series of brief time period accounts receivable springing up from deliver of goods and services to domestic shoppers. Goods are brought on open account credit score phrases as much as a hundred and eighty days.

Stock Market Interview Questions
Question 28. State The Advantages Of Venture Capital?

Answer :

Business knowledge: Aside from the economic backing, obtaining assignment capital financing can offer a begin-up or young enterprise with a valuable supply of steering and consultation. This can help with a selection of enterprise selections, such as monetary management and human aid control.

Additional resources: In some of crucial areas, including felony, tax and employees matters, a VC company can offer energetic assist, all of the greater crucial at a key degree within the increase of a younger organisation. Faster growth and more achievement are two potential key blessings.

Connections: Venture capitalists are usually properly connected within the business community. Tapping into those connections may want to have exquisite benefits.

Question 29. State The Charges And Fees Payable For Housing Loan?

Answer :

Processing prices
Legal and documentation prices
Insurance prices
Fine for default in charge of set up
Technical charges
Apparel Merchandising Interview Questions
Question 30. State The Importance Of Financial Services?

Answer :

Importance of Financial Services:

Vibrant Capital .
Expands activities of monetary s.
Benefits of Government.
Economic Development.
Economic Growth.
Ensures Greater Yield.
Maximizes Returns.
Minimizes Risks. 
Question 31. State The Advantages Of Portfolio Management?

Answer :

Investors make knowledgeable selection
Improves commercial enterprise overall performance
Equitable use of assets
Align goals with dreams
Monitors all business techniques
Question 32. What Is The Meaning Of Loan Syndication?

Answer :

Loan syndication is the technique of related to several exceptional creditors in presenting various quantities of a mortgage. Loan syndication most usually takes place in situations in which a borrower calls for a huge sum of capital that can be too much for a single lender to provide or out of doors the scope of a lender's chance publicity degrees. Thus, a couple of lenders paintings together to offer the borrower with the capital wanted.

Question 33. What Are Various Financial Services Organizations?

Answer :

Banks
Mutual financial savings banks
Savings banks
Building societies
Credit unions
Financial advisers or agents
Insurance organizations 
Capital Market Interview Questions
Question 34. State The Advantages Of Foreign Collaboration?

Answer :

Optimum usage of assets
Technical help
Economic improvement
Improves preferred of residing
Improves stability of payment
International Relationship
Question 35. What Is The Meaning Of Hire Purchase System?

Answer :

Hire-buy gadget is a unique gadget of purchase and sale of products. Under this device patron pays the charge of the goods in instalments. The instalments can be annual, six month-to-month, quarterly, month-to-month fortnightly etc. Under this system the goods are delivered to the patron at the time of agreement before the price of instalments however the identify on the goods is transferred after the payment of all instalments as per the lease-buy agreement.

Question 36. What Exactly Is Ad Hoc Testing? When Will You Use Ad Hoc Testing ?

Answer :

Tax blessings
Alternative use of price range
Boon to small firms
Flexibility of fee
Protect against obsolescence
Leasing is faster and cheaper credit
Business Investments Interview Questions
Question 37. Describe The Two Components Of Financial Restructuring?

Answer :

Debt restructuring:Debt restructuring is the procedure of reorganizing the complete debt capital of the employer. It entails reshuffling of the stability sheet gadgets because it consists of the debt responsibilities of the corporation.??A organization??S monetary manager wishes to constantly take a look at the alternatives to reduce the price of capital and improving the performance of the company as a whole so that you can in flip name for the non-stop overview of the debt component and recycling it to maximize efficiency.

Equity restructuring:Equity restructuring is the procedure of reorganizing the fairness capital. It includes reshuffling of the shareholders capital and the reserves which might be performing in the balance sheet. Restructuring of equity and preference capital becomes a complex method related to a manner of law and is a relatively regulated location.

Question 38. State The Features Of Venture Capital?

Answer :

Venture capital has the subsequent capabilities: 

Venture capital investments are made in modern initiatives.
Benefits from such investments may be found out in the end.
Suppliers of undertaking capital invest money inside the shape of equity capital.
As investment is made thru fairness capital, the providers of task capital take part inside the control of the employer.
Question 39. State The Types Of Factoring?

Answer :

Domestic Factoring
International Factoring
Question 40. An 18 V Source Has An Internal Resistance Of 70 . If A Load Resistance Of 33 Is Connected To The Voltage Source, The Load Power, Pl, Is A. 0 W B. 1 W C. One hundred seventy five Mw D. 18 Mw?

Answer :

International factoring is an imaginative and relatively simple idea. Factoring serves as export coverage. Factors, generally working for a factoring agency, assure the import charge of products to the exporter. It is the exporter who hires the thing. The element is definitely accountable for the coins drift from the importer to the exporter. In essence, credit is outsourced to the aspect employer.

Financial Analyst Interview Questions
Question forty one. State The Features Of Financial Services?

Answer :

Intangibility
Customer orientated
Perishable in nature
Inseparable
Direct sale
Labor intensive
Question 42. State The Various Institutions Providing Housing Finance?

Answer :

Industrial Development Bank of India[IDBI]
Tata Home Finance
LIC Housing Finance
State Bank of India
Bank of Punjab 
Financial Advisor Interview Questions
Question 43. State The Disadvantages Of Leasing?

Answer :

The lessee receives handiest the proper to use the asset. In case the leasing organization is wound up the asset may be taken back from the lessee thereby disrupting his operations.
The lessee can not make alterations or upgrades inside the asset with out the prior approval of the lessor. The lessor might also placed some restrictions at the lessee.
The lessee has to pay hire leases on a regular foundation to the lessor.
Question 44. State The Methods Of Venture Capital Financing As Per Indian Scenario?

Answer :

Equity participation
Conventional loan
Conditional loan
Income notes




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