eClerx Interview Questions, Process, and Tips for Freshers

Capital markets are platforms where companies and governments can raise funds through the sale of securities. Money markets are for short-term borrowing and lending.

• Capital markets are divided into primary and secondary markets

• Primary markets are where new securities are issued for the first time

• Secondary markets are where existing securities are traded among investors

• Examples of capital markets include stock exchanges...read more

Reconciliation is the process of comparing two sets of records to ensure they are in agreement. BRS stands for Bank Reconciliation Statement.

• Reconciliation involves comparing financial records to identify discrepancies

• BRS is a statement that compares a company's bank account balance to its financial records

• Reconciliation and BRS are important for identifying errors and fraud in financial records

• Examples of items that m...read more

There are different types of shares, such as common shares and preferred shares. Depreciation is the decrease in value of an asset over time.

• Common shares represent ownership in a company and give shareholders voting rights.

• Preferred shares have a fixed dividend and priority over common shares in case of liquidation.

• Depreciation is an accounting method used to allocate the cost of an asset over its useful life.

• It refle...read more

OTC market refers to the trading of securities directly between parties, while investment banking involves providing financial services to corporations and governments.

• OTC market stands for Over-the-Counter market, where securities are traded directly between parties without a centralized exchange.

• Investment banking is a sector of the financial industry that provides various financial services such as underwriting, mer...read more

A bond is a debt security where an investor loans money to an entity for a defined period at a fixed interest rate. A debenture is a type of bond that is not secured by collateral.

• Bonds are issued by corporations, municipalities, and governments to raise capital.

• Bonds have a fixed maturity date and pay interest at a fixed rate.

• Debentures are unsecured bonds that rely on the creditworthiness of the issuer.

• Debentures typ...read more

Finance deals with managing money and investments, while accounting deals with recording and reporting financial transactions.

• Finance involves making financial decisions and managing investments, such as deciding how to allocate funds and analyzing financial data to make predictions.

• Accounting involves recording financial transactions, preparing financial statements, and ensuring compliance with financial regulations.

• F...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives can be complex and carry significant risks.

• Derivatives played a role in the 2008 financial crisis.

Swaps are financial contracts between two parties to exchange cash flows based on different financial instruments.

• Swaps are used to manage risk and hedge against fluctuations in interest rates, currencies, and commodities.

• The most common type of swap is an interest rate swap, where two parties exchange fixed and floating interest rate payments.

• Currency swaps involve exchanging principal and interest payments in differe...read more