40+ Rajidi Retail Interview Questions and Answers

Pooled accounts refer to accounts where funds from multiple individuals or entities are combined into a single account.

• Pooled accounts are commonly used by investment funds, such as mutual funds or hedge funds, to pool together the investments of multiple investors.

• These accounts allow for diversification of investments and can be managed by a fund manager.

• The funds in a pooled account are typically invested in various assets, such as stocks, bonds, or other securities.

• Profit...read more

The parameters for enhanced due diligence are customer location, financial status, nature of business, and purpose of transaction.

• Enhanced due diligence is a more thorough investigation of a customer's risk profile.

• Customer location can indicate higher risk jurisdictions.

• Financial status can reveal potential for money laundering or terrorist financing.

• Nature of business can indicate higher risk industries.

• Purpose of transaction can reveal potential for illicit activity.

• Exampl...read more

Enhanced due diligence parameters include high-risk customers, politically exposed persons, complex ownership structures, and unusual transactions.

• Identifying high-risk customers based on their industry, location, or transaction history

• Conducting enhanced due diligence on politically exposed persons (PEPs) and their close associates

• Investigating complex ownership structures to identify ultimate beneficial owners (UBOs)

• Monitoring for unusual transactions that may indicate mone...read more

KYC Policy refers to the set of guidelines and procedures that a financial institution follows to verify the identity of its clients.

• KYC Policy is a crucial part of AML compliance.

• It outlines the procedures for verifying the identity of clients and assessing their risk.

• It includes guidelines for customer due diligence, ongoing monitoring, and record-keeping.

• Examples of KYC Policy include verifying the identity of clients through government-issued IDs, conducting background ch...read more

Suspicious transactions can be identified by analyzing transaction patterns, customer behavior, and red flags.

• Analyze transaction patterns such as unusual frequency, amounts, or destinations

• Monitor customer behavior such as sudden changes in activity or account information

• Look for red flags such as high-risk countries, politically exposed persons, or unusual business activities

• Use transaction monitoring software to flag potential suspicious activity

• Collaborate with law enforc...read more

Customer Acceptance Policy outlines the criteria for onboarding new customers and ongoing monitoring.

• The policy should include risk assessment procedures

• It should define the types of customers the institution will not do business with

• It should outline the documentation required for customer identification and verification

• It should specify the frequency and scope of ongoing monitoring

• It should be regularly reviewed and updated

• Example: A bank may refuse to do business with cust...read more

Customer identification procedure in AML/KYC involves verifying the identity of customers and assessing their risk level.

• Collecting customer information such as name, address, date of birth, and identification documents

• Verifying the authenticity of the provided information through reliable sources

• Assessing the customer's risk level based on factors such as their occupation, source of income, and transaction history

• Monitoring customer transactions for suspicious activity

• Updati...read more

Stateful components store and manage state data, while stateless components do not store state data.

• Stateful components have internal state data that can change over time, while stateless components rely on props passed down from parent components.

• Stateful components are typically class components in React, while stateless components are functional components.

• Examples of stateful components include forms, modals, and sliders, while examples of stateless components include but...read more

Insurance is a contract between an individual and an insurance company to protect against financial loss.

• Insurance provides financial protection against unexpected events

• It involves paying a premium to an insurance company in exchange for coverage

• The coverage can include protection for property, health, life, and more

• The insurance company assumes the risk of financial loss in exchange for the premium paid by the individual

• Insurance helps individuals and businesses manage risk...read more

Investment banking provides financial services to corporations, governments, and other institutions.

• Investment banks help companies raise capital through issuing stocks and bonds.

• They provide advisory services for mergers and acquisitions.

• They offer trading and market making services for securities.

• Investment banks also engage in asset management and wealth management.

• They assist in underwriting new debt and equity securities for clients.

Company policies are guidelines and rules set by the company to govern the behavior and actions of employees.

• Company policies outline expectations for employee conduct

• They cover areas such as attendance, dress code, communication, and use of company resources

• Policies are typically documented in an employee handbook or on the company intranet

• Employees are expected to adhere to company policies to maintain a positive work environment

Reconciliation is the process of comparing two sets of records to ensure they are in agreement. Trade life cycle includes order generation, execution, confirmation, settlement, and post-trade processing.

• Reconciliation involves comparing data from different sources to identify and resolve discrepancies.

• Stages of trade life cycle include order generation, execution, confirmation, settlement, and post-trade processing.

• Example: In trade support, reconciliation may involve compari...read more

I expect a competitive salary based on my experience and expertise in the German language.

• I am looking for a salary that reflects my skills and qualifications as a German language expert.

• I have researched the market rates for similar positions and expect to be compensated accordingly.

• I am open to discussing the salary range and benefits package during the negotiation process.

• I believe my expertise in the German language and my ability to effectively communicate and translate ...read more

Life insurance is a contract between an individual and an insurance company, where the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.

• Life insurance provides financial protection to the family of the insured in case of their untimely death

• The insured pays a premium to the insurance company in exchange for the death benefit

• There are different types of life insurance policies such as term life, whole life, and universal life

• Li...read more

In-the-money (ITM) option

• If the strike price is greater than the current market price in a PUT option, it is considered in-the-money (ITM)

• ITM options have intrinsic value because they can be exercised for a profit

• Example: If the strike price of a PUT option is $50 and the current market price is $45, it is ITM

Handle customer complaints by acknowledging their concerns, offering solutions, and ensuring quality improvement.

• Listen to the customer's concerns and empathize with their situation.

• Apologize for the inconvenience caused and assure them that their feedback is valuable.

• Offer solutions such as replacement, refund, or exchange depending on the situation.

• Ensure quality improvement by investigating the root cause of the issue and taking necessary actions.

• Follow up with the custome...read more

Futures are standardized contracts traded on exchanges, while forwards are customized contracts traded over-the-counter.

• Futures are traded on exchanges, while forwards are traded over-the-counter.

• Futures are standardized in terms of contract size, expiration date, and settlement, while forwards are customizable based on the needs of the parties involved.

• Futures require margin accounts and daily settlement, while forwards do not.

• Examples of futures include S&P 500 futures, whi...read more

Bonus issue in corporate actions refers to the issuance of additional shares to existing shareholders at no cost.

• Bonus issue is a form of corporate action where a company distributes additional shares to its existing shareholders for free.

• This is done as a way to reward shareholders without affecting the company's cash reserves.

• Shareholders receive additional shares in proportion to their existing holdings, maintaining their ownership percentage in the company.

• Bonus issues ar...read more

Call and put options are types of financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

• A call option gives the holder the right to buy an asset at a specified price within a certain timeframe.

• A put option gives the holder the right to sell an asset at a specified price within a certain timeframe.

• Call options are used by investors who believe the price of the underlying asset will rise, w...read more

The claims department handles the process of investigating, evaluating, and settling insurance claims.

• Receive and review claims submitted by policyholders

• Investigate the validity of the claim

• Evaluate the extent of the damage or loss

• Determine coverage and liability

• Negotiate settlements with policyholders or third-party claimants

• Process payments to policyholders or vendors

• Maintain records and documentation of claims

• Provide customer service and support to policyholders

Corporate actions refer to events initiated by a public company that can affect its shareholders and securities.

• Corporate actions can include dividends, stock splits, mergers, acquisitions, rights issues, and spin-offs.

• These actions can impact the value of securities held by investors and may require adjustments to portfolios.

• Investors need to stay informed about corporate actions to make informed decisions about their investments.

A spin off in Corporate action is when a company creates a new independent company by separating a part of its business.

• A spin off involves a parent company distributing shares of a subsidiary to its existing shareholders.

• The new independent company operates separately from the parent company.

• Spin offs can be done to unlock value, focus on core businesses, or improve efficiency.

• Examples of spin offs include the separation of PayPal from eBay and the creation of AbbVie from Ab...read more

Derivatives are financial contracts whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Types of derivatives include options, futures, forwards, and swaps.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

• Futures are contracts to buy or sell an asset at a predetermined price on a specified future date.

• Forwards are similar to...read more

Option derivatives are financial instruments that derive their value from an underlying asset, such as stocks or commodities.

• Option derivatives give the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price within a certain time frame.

• There are two types of option derivatives: call options, which give the holder the right to buy the underlying asset, and put options, which give the holder the right to sell the underlying asset.

• Opti...read more

Types of derivatives include options, futures, forwards, and swaps.

• Options: contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before or on a specified date.

• Futures: contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.

• Forwards: agreements between two parties to buy or sell an asset at a specified future date and price.

• Swaps: agreements between...read more

My 5 year plan is to advance my skills and knowledge in insurance claims analysis, take on more responsibilities, and contribute to the growth of the company.

• Complete relevant certifications and training programs

• Take on more complex claims and lead a team

• Identify and implement process improvements to increase efficiency

• Collaborate with other departments to improve customer satisfaction

• Contribute to the company's growth by bringing in new business

Reporting in accounting is crucial for tracking financial performance, making informed decisions, and ensuring compliance.

• Reporting helps track financial performance and identify areas of improvement.

• It provides insights for making informed business decisions.

• Reporting ensures compliance with regulations and standards.

• Examples: Balance sheets, income statements, cash flow statements.

• Reporting helps stakeholders understand the financial health of the organization.

Insurance is a contract between an individual and an insurance company to protect against financial loss.

• Insurance provides financial protection against unexpected events such as accidents, illnesses, and natural disasters.

• Insurance policies have premiums, deductibles, and coverage limits.

• Types of insurance include health, auto, home, life, and liability insurance.

• Insurance companies use actuarial science to calculate risk and set premiums.

• Claims are filed when a covered even...read more

A credit default swap is a financial derivative contract that allows an investor to transfer the credit risk of a fixed income security to another party.

• It is essentially a form of insurance against the default of a borrower or issuer of debt.

• The buyer of the credit default swap makes periodic payments to the seller in exchange for protection against default.

• If the borrower defaults on their debt, the seller of the credit default swap compensates the buyer for the loss incurr...read more

Custodian is responsible for safeguarding assets, processing transactions, and providing reporting services for institutional clients.

• Safeguarding assets such as securities, cash, and other financial instruments

• Processing transactions including settlements, corporate actions, and income collection

• Providing reporting services like performance measurement, risk analysis, and compliance monitoring

AXA is a multinational insurance company headquartered in France.

• AXA is one of the largest insurance companies in the world.

• It offers a wide range of insurance products and services including life, health, property, and casualty insurance.

• AXA operates in multiple countries and regions globally.

• The company also provides asset management and investment services.

• AXA is known for its strong financial stability and customer service.

IFRS 9 is an international financial reporting standard that sets out guidelines for accounting for financial instruments.

• IFRS 9 replaces IAS 39 and introduces new classification and measurement requirements for financial assets

• It also includes guidelines for impairment of financial assets and hedge accounting

• IFRS 9 aims to improve the financial reporting of financial instruments and provide more relevant information to users of financial statements

Java is a popular programming language used for developing various applications. OOPs concepts refer to Object-Oriented Programming principles.

• Java is a high-level, class-based, object-oriented programming language.

• OOPs concepts include Inheritance, Encapsulation, Polymorphism, and Abstraction.

• Inheritance allows a class to inherit properties and behavior from another class.

• Encapsulation refers to bundling data and methods that operate on the data into a single unit.

• Polymorphi...read more

The bond interest rate can be calculated using the formula: Interest Rate = (Coupon Payment / Face Value) * 100

• Calculate the annual coupon payment of the bond

• Determine the face value of the bond

• Use the formula to calculate the bond interest rate

• For example, if a bond has a coupon payment of $50 and a face value of $1,000, the interest rate would be (50 / 1000) * 100 = 5%

A heart specialist is called a cardiologist.

• A cardiologist is a medical doctor who specializes in diagnosing and treating diseases and conditions of the heart and blood vessels.

• They may perform procedures such as angioplasty, stent placement, and heart catheterizations.

• Examples of heart conditions they treat include heart attacks, heart failure, and arrhythmias.

Health insurance is a type of coverage that pays for medical and surgical expenses incurred by the insured.

• Health insurance helps individuals and families cover the cost of medical care.

• It can include coverage for doctor visits, hospital stays, prescription medications, and preventive care.

• Health insurance plans can vary in terms of coverage, cost, and network of providers.

• Examples of health insurance providers include Blue Cross Blue Shield, Aetna, and UnitedHealthcare.

Accrual refers to the recognition of revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period

• It provides a more accurate representation of a company's financial position

• Examples include recognizing revenue when a service is performed, even if payment has not been received yet

Anti-money laundering (AML) refers to laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income.

• AML involves detecting and reporting suspicious financial activities to authorities

• Financial institutions are required to have AML compliance programs in place

• Examples of AML measures include customer due diligence, transaction monitoring, and reporting of suspicious activities

Inheritance refers to the passing down of genetic traits from parents to offspring, while difference refers to variations in traits between individuals.

• Inheritance involves the transmission of genetic information from parents to their offspring through DNA.

• Difference refers to the variations in traits that can occur between individuals due to genetic and environmental factors.

• Examples of inheritance include eye color, blood type, and genetic disorders passed down from parents...read more

Insurance is a financial product that provides protection against specific risks in exchange for payment of a premium.

• Insurance is a contract between an individual or entity (the policyholder) and an insurance company.

• The policyholder pays a premium to the insurance company in exchange for coverage against certain risks, such as property damage, illness, or death.

• In the event of a covered loss, the insurance company compensates the policyholder according to the terms of the p...read more