10+ Veranda RACE Interview Questions and Answers

Questions related to finance and banking including golden rules of account, derivatives, investment banking, hedge fund management, anti-money laundering, and transfer agency.

• Golden rules of account are basic principles of accounting that help in maintaining accurate financial records.

• Derivatives are financial instruments that derive their value from an underlying asset or security. Types include futures, options, swaps, and forwards.

• Investment banking involves providing fina...read more

Mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of their investment is based on the performance of the underlying assets

• NAV is calculated by dividing the total value of the assets in the fund by the number of outstanding shares

• NAV is used to determine the price at which investors can buy or...read more

Capital market is a financial market where long-term securities are traded.

• It is a market for buying and selling long-term securities such as stocks, bonds, and mutual funds.

• It provides a platform for companies and governments to raise funds for their long-term investments.

• The capital market is regulated by the Securities and Exchange Board of India (SEBI) in India.

• Examples of capital market instruments include equity shares, debentures, and preference shares.

Money market refers to a market where short-term financial instruments are traded.

• Money market deals with short-term borrowing and lending.

• It includes instruments like treasury bills, commercial papers, certificates of deposit, etc.

• The interest rates in the money market are generally lower than other markets.

• It is considered a safe investment option with low risk and low returns.

• Money market funds are a popular investment option for individuals and institutions.

NAV is calculated by subtracting the total liabilities from the total assets of a fund and dividing the result by the number of outstanding shares.

• Total assets of the fund are calculated by adding the market value of all securities held by the fund.

• Total liabilities include any outstanding debts or expenses owed by the fund.

• The number of outstanding shares is the total number of shares issued by the fund.

• NAV = (Total assets - Total liabilities) / Number of outstanding shares

Derivatives are financial contracts whose value is derived from an underlying asset or benchmark.

• Derivatives are used for hedging, speculation, and arbitrage.

• Common types of derivatives include futures, options, swaps, and forwards.

• Derivatives allow investors to gain exposure to various asset classes without owning the underlying assets.

• They can be used to manage risk by providing insurance against adverse price movements.

• Derivatives are traded on exchanges or over-the-counte...read more

A mutual fund is a type of investment vehicle made up of a pool of money collected from many investors to invest in securities.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities.

• Mutual funds offer diversification and convenience for investors.

• There are different types of mutual funds, including equity funds, bond funds, and money market f...read more

Reconciliation work involves comparing two sets of records to ensure they are in agreement and resolving any discrepancies.

• Compare financial transactions in bank statements with internal records

• Identify and investigate any discrepancies or errors

• Make necessary adjustments to ensure both sets of records match

• Document the reconciliation process for audit purposes

The question is asking to check if certain components are included in the CTC.

• Identify the components that are typically included in a CTC such as base salary, bonuses, benefits, etc.

• Check if each component mentioned in the question is part of the CTC.

• Provide a list of components that are included in the CTC and those that are not.

NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• NAV = (Assets - Liabilities) / Number of outstanding shares

• Assets include cash, investments, and property

• Liabilities include debts and expenses

• NAV is used to determine the value of a mutual fund or ETF

• NAV can fluctuate based on changes in asset and liability values

NAV is calculated by dividing the total value of a fund's assets by the number of outstanding shares.

• NAV stands for Net Asset Value

• It is calculated by subtracting a fund's liabilities from its assets, then dividing by the number of shares outstanding

• NAV is typically calculated at the end of each trading day

• For example, if a fund has $1,000,000 in assets and 100,000 shares outstanding, the NAV would be $10 per share

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation: Trade is proposed and agreed upon by parties involved.

• Trade execution: Trade is executed on the agreed terms.

• Trade confirmation: Parties confirm the details of the trade.

• Trade settlement: Payment and transfer of securities are completed.

• Trade reconciliation: Ensuring all details match between parties involved.

• Trade reporting: Reporting the trade to relevant authorities.

• Tr...read more