Fusion Microfinance Interview Questions and Answers

Current ratio and DSCR are financial ratios used to analyze a company's financial health.

• Current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A suitable current ratio varies by industry, but generally a ratio of 2:1 is considered good.

• DSCR measures a company's ability to pay its debt obligations. A ratio of 1.25:1 or higher is considered good.

• To analyze a profit and loss statement, look at revenue, expenses, and net income. ...read more

Spot, TOM, Cash deals and Forex overview explained.

• Spot deals involve immediate delivery of currency at the current market rate.

• TOM deals involve delivery of currency the next day after the trade is executed.

• Cash deals involve delivery of currency within two business days after the trade is executed.

• Forex overview includes analysis of currency pairs, market trends, and economic indicators.

• Spot deals are commonly used for currency conversions, while TOM and Cash deals are used...read more

Forwards, futures, and options are financial derivatives used for hedging and speculation.

• Forwards are contracts between two parties to buy or sell an asset at a specified price and date in the future.

• Futures are similar to forwards but are traded on exchanges and have standardized contract terms.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price and date in the future.

• Options can be either call options (the right to buy) o...read more

Banking refers to the business of accepting deposits and lending money.

• Banking involves financial institutions that accept deposits from customers and use those funds to make loans to other customers.

• Banks also offer a range of other financial services, such as credit cards, investment products, and insurance.

• Banking is regulated by government agencies to ensure the safety and soundness of the financial system.

• Examples of banks include JPMorgan Chase, Bank of America, and Wel...read more

Bank financial statements are crucial for evaluating the financial health of a bank.

• Bank financial statements provide information on the bank's assets, liabilities, income, and expenses.

• They help investors and analysts evaluate the bank's financial health and performance.

• Key financial ratios such as return on assets (ROA) and return on equity (ROE) can be calculated using information from the financial statements.

• Examples of important financial statements include the balance ...read more

Joining ICICI bank was a bad decision due to lack of growth opportunities and toxic work culture.

• Limited growth opportunities within the organization

• Toxic work culture affecting employee morale

• Lack of work-life balance

• Poor management decisions impacting job satisfaction

KYC documents refer to the documents required for verifying the identity of customers for financial transactions.

• KYC documents include government-issued ID proof like passport, driver's license, Aadhar card, etc.

• Address proof documents like utility bills, bank statements, etc. are also required.

• Additional documents may be needed based on the specific requirements of the financial institution or organization.

• KYC documents help in preventing fraud, money laundering, and identit...read more

The pen and bottle are essential tools for everyday tasks, offering convenience and functionality.

• The pen is a versatile writing instrument, perfect for jotting down notes or signing important documents.

• The bottle is a practical container for storing liquids, keeping them fresh and easily accessible.

• Both items are must-have accessories for anyone on the go, whether in the office, at school, or during travel.