Bank of Maharashtra Credit Officer Interview Questions and Answers

Credit refers to the ability of a borrower to receive funds from a lender with the promise of repayment with interest.

• Credit is a financial tool used by individuals and businesses to access funds they may not have immediately available.

• Credit can come in many forms, such as loans, credit cards, and lines of credit.

• Credit is typically granted based on the borrower's creditworthiness, which is determined by factors such ...read more

A bank is a financial institution that accepts deposits, makes loans, and provides other financial services.

• Accepts deposits from customers

• Provides loans to individuals and businesses

• Offers various financial services such as credit cards, savings accounts, and investment products

• Facilitates transactions between customers and other banks

• Manages risk and ensures compliance with regulations

• Earns revenue through interest o...read more

The latest banking and economic news covers topics such as interest rates, inflation, and economic growth.

• The Federal Reserve recently announced that they will keep interest rates near zero until 2023.

• Inflation has been rising due to supply chain disruptions and increased demand.

• The US economy grew at an annual rate of 6.4% in the first quarter of 2021.

• The stock market has been volatile due to concerns about inflation ...read more

Cash credit is a loan given against inventory or receivables, while overdraft is a facility to withdraw more than the available balance.

• Cash credit is a short-term loan given to businesses to meet their working capital needs.

• It is secured against inventory or receivables.

• Interest is charged only on the amount utilized.

• Overdraft is a facility given to account holders to withdraw more than the available balance in their ...read more

Leverage is the use of borrowed funds to increase potential returns on an investment.

• Leverage involves borrowing money to invest in an asset with the hope of earning a higher return than the cost of borrowing.

• It amplifies both gains and losses, so it can increase potential profits but also increase risk.

• Examples of leverage include using a mortgage to buy a house or using margin to buy stocks.

• Leverage is commonly used ...read more