Barclays Analyst Interview Questions and Answers

A series of questions related to tax audit, accounting, finance, and investments.

• Form 3CA and 3CD are documents required for tax audit in India.

• The present tax audit limit is Rs. 5 crores.

• Recent amendments in applicability of tax audit include an increase in the threshold limit for businesses with digital transactions.

• Goods in transit can be recorded using a transit account.

• Credit risk is the risk of loss due to a borrower's failure to repay a loan or meet contractual obligat...read more

Emerging market currencies may experience volatility if Donald Trump wins election.

• Emerging market currencies could weaken due to uncertainty and potential trade conflicts under Trump's administration

• Investors may seek safe-haven assets like the US dollar, leading to further depreciation of emerging market currencies

• Countries with high exposure to US trade policies, such as Mexico and China, may see their currencies particularly affected

Bond prices and yields have an inverse relationship, affected by the Fed fund rate.

• Bond prices and yields have an inverse relationship - when bond prices go up, yields go down, and vice versa.

• The Fed fund rate influences bond prices and yields - when the Fed fund rate increases, bond prices decrease and yields increase.

• Investors monitor the Fed fund rate to predict bond market movements and make investment decisions accordingly.

Future rates/forwards are calculated based on interest rate differentials between two currencies.

• Future rates are calculated using the interest rate differentials between the two currencies involved.

• For example, if the interest rate in India (INR) is 5% and in the US (USD) is 2%, the forward rate would be calculated based on this difference.

• The formula for calculating the forward rate involves the spot rate, interest rates, and time to maturity.

• Forward rates are used by inves...read more

A Credit Default Swap (CDS) is a financial derivative contract that allows an investor to hedge against the risk of default on a debt instrument.

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

• The buyer of a CDS makes periodic payments to the seller in exchange for protection against default on a specified debt obligation.

• If the borrower defaults, the seller of the CDS compensates the buyer for the loss incurred.

• CDS can be...read more