ESAF CO-OPERATIVE Senior Faculty Interview Questions and Answers

FX Option is a financial derivative that gives the holder the right but not the obligation to exchange one currency for another at a predetermined exchange rate. Credit Default Swap is a financial contract that allows the buyer to transfer the credit risk of a bond or loan to a seller.

• FX Option is used to hedge against currency risk in international trade

• Credit Default Swap is used to protect against the risk of defaul...read more

Product control role involves monitoring and managing the financial performance of a product or business line.

• Responsible for ensuring accurate and timely financial reporting

• Analyzing and interpreting financial data to identify trends and areas for improvement

• Developing and implementing financial controls and processes

• Collaborating with other departments to ensure product profitability

• Examples: monitoring the performan...read more

MT 103 is a SWIFT payment message type used for cash transfers, while MT 202 is for bank-to-bank transfers.

• MT 103 is used for customer payments and transfers, while MT 202 is for bank-to-bank transfers

• MT 103 is a single customer credit transfer, while MT 202 is a general financial institution transfer

• MT 103 is used for international wire transfers, while MT 202 is used for interbank transfers

• MT 103 includes details of ...read more

Swift regulation has undergone new changes.

• The changes aim to improve transparency and reduce risks in the financial industry.

• One of the changes is the introduction of the Legal Entity Identifier (LEI) requirement for certain transactions.

• Another change is the implementation of the ISO 20022 messaging standard for cross-border payments.

• The changes will impact financial institutions and their clients.

• Compliance with the

Singapore WHT stands for Singapore Withholding Tax, which is a tax deducted at source on certain types of income.

• Singapore WHT is applicable on payments such as interest, royalties, and services provided by non-residents.

• The tax rate for Singapore WHT varies depending on the type of income and the tax treaty between Singapore and the country of the recipient.

• Singapore WHT is usually deducted by the payer of the income ...read more

CRS stands for Common Reporting Standard, a global standard for the automatic exchange of financial account information between tax authorities.

• CRS was developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion.

• It requires financial institutions to collect and report information on foreign tax residents to their local tax authorities.

• Over 100 countries have committed to impleme...read more

Derivatives are financial instruments whose value is derived from underlying assets, used for hedging or speculation.

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

• Options give the right, but not the obligation, to buy/sell an asset at a predetermined price.

• Futures contracts obligate parties to buy/sell an asset at a future date at a set price.

• Swaps involve exchanging cash flows or liabilities betwe...read more

I would approach designing a credit management strategy for credit cards by analyzing customer behavior, setting credit limits, monitoring transactions, and implementing fraud detection measures.

• Analyze customer behavior to determine credit risk

• Set appropriate credit limits based on income and credit history

• Monitor transactions for any suspicious activity

• Implement fraud detection measures such as real-time alerts and s...read more

I will address team conflicts by promoting open communication, active listening, and facilitating constructive discussions.

• Encourage open communication among team members to address conflicts early on

• Practice active listening to understand all perspectives and concerns

• Facilitate constructive discussions to find mutually beneficial solutions

• Implement team-building activities to improve relationships and prevent conflict...read more