| Banking Interview Questions |
Banking Interview Questions & Answers
1. What is bank?
A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. or The essential role of a bank is to connect those who have capital with those who want or seek capital.
2. What is Account’s?
Financial records of an organization that registers all financial transactions.
3. What is Accountancy?
It is the process of communicating financial information about a business entity to users such as shareholders and managers. or The process of recording, classifying and summerzing in significant manner in terms of money, transactions and events.
4. What is Debit & Credit?
Debit & Credit are the two fundamental aspects of every financial transaction. A debit is an amount of money subtracted from what we have and credit is an amount of money added to what we have.
5. What is an Overdraft?
A deficit in a bank account caused by drawing more money than account holds. or The amount by which withdrawals exceeds deposits.
6. What is Bank Reconciliation Statement?
A form that allows individuals to compare their personal bank’s records of the individual’s account balance in order to uncover any possible discrepancies.
7. What is Finance?
The science of the management of money, banking, investments and other assets.
8. What is Insurance and What are the types of Insurance?
A promise of compensation for specific potential future losses in exchange for a periodic payment(premiums). It is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss.
Major types of Insurance:
9. What is the difference between a Bank book and Ledger?
Ledger: A company’s main accounting records, that is permanent and complete record of financial transactions over the life of a company. It may be either book or computer file.
Bank book: A book held by a customer(depositor) in which their deposits or withdrawals are recorded by the bank.
10. What is Tax and What are the types of Tax?
A fee charged or levied by a government on a product, income or activity. If tax levied on the personal or corporate income is Direct Income Tax. Otherwise for price of a good or service is Indirect Tax.
Major types of Tax:
Capital Gain Tax(stocks)
Value Added Tax(VAT)
11. What is a Claim? And what do you know about Claim Processing?
Claim: Reimbursement for a loss under a contract. or Seek for a compensation for losses or money already spent.
Claim Processing: An insurer action on claim filed by a insured involves review, investigation, adjustments.
12. What is a Payment?
The process of Paying someone or something or being paid.
13. What is a Transaction?
The business event that has a monetary impact on entity’s financial statement.
14. What do you mean by Clearance in Banking terms?
All activities from the time a commitment is made for a transaction until it is settled.
15. What are Loans and What are the types of Loans?
Money that is borrowed that is expected to be paid back in certain time with interest.
Types of Loans:
Secured Loan(borrower pledges some asset)
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