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Investment Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM INVESTMENT INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Investment Interview Questions & Answers - Learning Mode

Investment is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. Investment and Speculation are different things. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.

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Subcategories for Investment Interview Questions & Answers - Learning Mode

Following are sub categories for which Interview Questions & Answers are available under Investment Interview Questions & Answers - Learning Mode. Please select the appropriate sub-category:-

Bond Interview Questions & Answers (36) Learning Mode | Exam Mode

Commodity Interview Questions & Answers (71) Learning Mode | Exam Mode

Currency Trading Interview Questions & Answers (149) Learning Mode | Exam Mode

ESOP Interview Questions & Answers (1) Learning Mode | Exam Mode

Fixed Deposit / FD Interview Questions & Answers (42) Learning Mode | Exam Mode

Futures And Options Trading Interview Questions & Answers (241) Learning Mode | Exam Mode

Initial Public Offering IPO Interview Questions & Answers (77) Learning Mode | Exam Mode

Mutual Funds Interview Questions & Answers (82) Learning Mode | Exam Mode

Public Provident Fund (PPF) Interview Questions & Answers (4) Learning Mode | Exam Mode

Stock / Equity Interview Questions & Answers (8) Learning Mode | Exam Mode

Venture Capital Interview Questions & Answers (1) Learning Mode | Exam Mode

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Investment Interview Questions & Answers - Learning Mode
Try Investment Interview Questions & Answers - Exam Mode
Question: What is Simple Interest for any investment?

Answer: Simple interest is calculated by multiplying the interest rate by the principal by the number of periods. It ignores the effect of compounding and is suitable for calculating interest on short term deposits. Source: CoolInterview.com
Question: What is a Deduction?

Answer: A Deduction is a situation where a specified amount is reduced from the taxable income of the individual. A deduction leads to a tax saving for the individual investor. Source: CoolInterview.com
Question: Who is a Borrower?

Answer: Borrower is a person or an entity that takes money from someone else for various purposes. The borrower uses the money for the specified time duration and at the end of the period returns the money to the lender. For the usage of these funds there will be a payment called interest. Source: CoolInterview.com
Question: What is Annual Yield?

Answer: Annual Yield is the effective annual rate of return taking into account the effect of compounding interest. Its utility lies in its ability to standardize varying interest-rate arrangements into an annualized percentage number for comparison. Source: CoolInterview.com
Question: What are the time-tested investment strategies that work?

Answer: Start investing as early as possible - the power of compounding is the single most important reason for you to start investing right now as even a relatively small amount invested early will grow over the course of your working life into a substantial nest egg. Remember, every day that your money is invested, is a day that your money is working for you.
Buy stocks or equity mutual funds and hold long-term historically, world over, and even in India, stocks have outperformed every other asset Source: CoolInterview.com
Question: What is Nomination?

Answer: Banks ask their account holders to make nominations which mean that they should nominate persons to whom the money lying in their accounts should go in the event of their death. Nomination can be made in account opening form itself or on a separate form indicating the name and address of the nominee. The account holders can change the nomination any time. Source: CoolInterview.com
Question: What are Know Your Client guidelines?

Answer: Know Your Client guidelines (KYC) is process that has to be undertaken by banks and other financial institutions to ensure that proper check is made of the investors transacting with them. This is done in order to ensure that the client is known to the financial entity and there is no money laundering taking place. Source: CoolInterview.com
Question: What is Discrete and Continuous data in Data mining world?

Answer: Tax Deducted at Source is a method of payment where the tax applicable at a specific rate is cut from the amount of interest or other payment and then the net amount is paid to the person who has to receive the amount. The tax is then deposited with the government along with the permanent account number of the receiver. Source: CoolInterview.com
Question: What is a Credit Risk?

Answer: Credit Risk is the risk associated with an investment where the borrower is not able to repay the amount to the lender. This can occur on account of poor financial condition of the borrower, and it represents a risk for the lender. Source: CoolInterview.com
Question: What is Interest Payout?

Answer: Interest payout is a process whereby the interest earned on the deposit is paid out to the investor at specified time intervals. This can be a quarter, six months or a year, depending upon the details specified in the deposit. The investor gets the cash in this situation. Source: CoolInterview.com
Question: What are Co-operative banks?

Answer: Co-operative banks are banks that are operating in the economy under co-operative model of ownership. This is a situation where a number of people get together and form a co-operative and then run the bank jointly. Source: CoolInterview.com
Question: What is Non-Resident Accounts (NRA)?

Answer: Non-Resident bank accounts are those, which are maintained by Indian nationals and Persons of Indian origin resident abroad, foreign nationals and foreign companies in India. Bank branches can open ordinary non-resident accounts in the names of private individuals provided initial deposits for opening the accounts are received from abroad in an approved manner or the initial amount is tendered in foreign currency while on a visit to India or transfer of funds from the existing non-resident accou Source: CoolInterview.com
Question: What is Interest Rate?

Answer: Interest rate is the amount calculated as a specified percentage of the amount lent that is paid to the lender or the investor. This represents the rate of return for the person or entity lending the money and is a key figure that is considered in selecting a fixed deposit. Source: CoolInterview.com
Question: Who is a Lender?

Answer: Lender is a person or an entity that gives money to someone else for a specific period of time. The money will be returned and for the effort of lending there is an earning in the form of interest. Source: CoolInterview.com
Question: Is there any change in maximum investment tenure for SSY (Sukanya Samriddhi Yojana)?

Answer: Yes the maximum investment term that one can make under the scheme has been increased from 14 years to 15 years. Under the Sukanya Samriddhi Yojana you can invest a minimum sum of Rs. 1000 and a maximum of Rs. 1, 50,000 in a financial year. As a parent or guardian you can open an account up to age of 10 years of the girl child from the date of birth. Source: CoolInterview.com
Question: What is a Bank?

Answer: Bank is a financial entity that accepts deposits from the public and then gives this money as loans and advances to those who require funds. The bank typically earns money from taking deposits at a lower cost and then lending the money at a higher rate. Source: CoolInterview.com
Question: What is Savings Bank Account (SBA)?

Answer: Savings Bank Account (SBA) is an account opened with a bank that allows the account holder to deposit and withdraw funds for their requirements. The account pays an interest of 3.5% for the account holder. Source: CoolInterview.com
Question: What is Sweep Bank Account?

Answer: Many Banks have introduced a savings cum fixed deposit product called a "Sweep Account". Here the account holder decides the minimum amount to be kept in his/her savings account. Any excess over it automatically gets transferred to a fixed deposit account. Whenever cash is needed,the bank can just transfer or 'sweep' in funds to the savings account. Source: CoolInterview.com
Question: What is Receipt of Payment for any investment?

Answer: Receipt is a proof or acknowledgement of the deposit that is received by a bank from an investor. This gives various details like the amount, time period, mode of payment of interest, maturity date and so on. Source: CoolInterview.com
Question: How do I invest with a limited amount?

Answer: Regular investing is a very good way to build up an investment portfolio (read Dollar Cost Averaging to understand why) and this can be done with any amount of money. First, plan out how your investments should be spread out i.e. how much should be invested in equity shares and how much in fixed-income (bonds/ debentures) instruments. This should be based on your risk profile i.e. what your risk taking capacity is (how much risk can you take financially) and what your attitude towards risk is.CoolInterview.com

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Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
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A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
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There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
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