In each number except 383, the product of first and third digit is the middle one.
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Those wishing to pursue a career in the banking sector (retail or investment) may be expected to sit an online banking test as part of the recruitment process. As positions in prestigious banking companies are highly sought after, performing well in these psychometric tests can improve your chance of success.
31) What do you mean by co-maker?
A person who signs a note to guarantee the payment of the loan on behalf of the main loan applicant’s is known as co-maker or co-signer.
40) What is Cost Of Funds Index (COFI)?
COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Loans.
For certain loan, there is a provision for the borrower to change the interest rate from fixed to variable and vice versa is referred as Convertibility Clause.
Charge off is a declaration by a lender to a borrower for non-payment of the remaining amount, when borrower badly falls into debt. The unpaid amount is settled as a bad debt.
‘LIBOR’ stands for London Inter-Bank Offered Rate. As the name suggest, it is an average interest rate offered for U.S dollar or Euro dollar deposited between groups of London banks. It is an international interest rate that follows world economic condition and used as a base rate by banks to set interest rate. LIBOR comes in 8 maturities from overnight to 12 months and in 5 different currencies. Once in a day LIBOR announces its interest rate.
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This page will help you prepare for any pre-employment aptitude test, using accurate and up-to-date practice.
16) What is the ‘cost of debt’?
When any company borrows funds, from a financial institution (bank) or other resources the interest paid on that amount is known as ‘cost of debt’.
The ‘balloon payment’ is the final lump sum payment that is due. When the entire loan payment is not amortized over the life of the loan, the remaining balance is due as the final repayment to the lender. Balloon payment can occur within an adjustable rate or fixed rate mortgage.
The repayment of the loan by instalment to cover principal amount with interest is known as ‘Amortization’.
When repayment of the loan is less than the loans accumulated interest, then negative Amortization occurs. It will increase the loan amount instead of decreasing it. It is also known as ‘deferred interest’.
39) What do you mean by term ‘Loan Maturity’ and ‘Yield’?
The date on which the principal amount of a loan becomes due and payable is known as ‘Loan Maturity’. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425.
4) What are the types of Commercial Banks?
Following are the types of Commercial Banks
It is a small to mid-sized branch that directly deals with consumer’s transaction rather than corporate or other banks
b) Corporate or business banking
Corporate banking deals with cash management, underwriting, financing and issuing of stocks and bonds
c) Securities and Investment banking
Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.
d) Non-traditional options
There are many non-bank entities that offer financial services like that of the bank. The entities include credit card companies, credit card report agencies and credit card issuers
Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.