Northern Trust Analyst 1 Interview Questions, Process, and Tips

I attended a 1-hour interview for the Analyst role. The questions were easy to moderate and included a mix of tasks. I was asked to read a paragraph aloud while recording, which tested my communication skills. There were also logical reasoning questions and basic math problems on topics like distance and time. The process was smooth, and the questions focused on analytical thinking and clarity in communication.

Q1. Introduce yourself
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I am a recent graduate with a degree in finance and a passion for data analysis.
• Recent graduate with a degree in finance

• Passionate about data analysis

• Strong analytical skills

• Proficient in Excel and data visualization tools

• Experience with financial modeling
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Q2. What is trade life cycle
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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 occur to finalize the trade.

• Trade reconciliation: Ensuring all details match between parties'...read more
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Q3. What is option with example
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An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time period.
• Options can be call options (the right to buy) or put options (the right to sell).

• The price at which the asset can be bought or sold is called the strike price.

• The specific time period during which the option can be exercised is called the expiration date...read more
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Q4. Difference between trial balance and balance sheet
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Trial balance is a list of all general ledger accounts with their balances, while balance sheet is a financial statement showing assets, liabilities, and equity at a specific point in time.
• Trial balance is an internal document used to ensure the total debits equal total credits in the general ledger.

• Balance sheet is a financial statement that shows a company's financial position at a specific point in time, including a...read more
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Q5. What is ETF
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ETF stands for Exchange-Traded Fund, a type of investment fund traded on stock exchanges.
• ETFs are similar to mutual funds but trade like a stock on an exchange.

• They typically hold assets such as stocks, commodities, or bonds.

• Investors can buy or sell ETF shares throughout the trading day at market prices.

• ETFs offer diversification, liquidity, and lower fees compared to traditional mutual funds.

• Examples of popular ETFs ...read more
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Q6. What is mortgage back security
Ans. 
A mortgage-backed security is an investment product that is backed by a pool of mortgages.
• Mortgage-backed securities are created when a financial institution pools together a group of mortgages and sells them to investors.

• Investors receive payments based on the interest and principal payments made by the borrowers of the underlying mortgages.

• These securities can be issued by government-sponsored entities like Fannie Ma...read more
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Q7. What is stock exchange
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A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold.
• Stock exchanges provide a platform for companies to raise capital by issuing shares to investors.

• Investors can buy and sell securities through brokers on the exchange.

• Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

• Stock exchanges play a crucial role in the economy by facilitating the
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Q8. SEBI guidelines
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Q9. What is Repo rate
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Repo rate is the rate at which the central bank lends money to commercial banks for short-term periods.
• Repo rate is used by central banks to control inflation and liquidity in the economy.

• A higher repo rate means higher borrowing costs for banks, leading to lower money supply and lower inflation.

• Conversely, a lower repo rate means lower borrowing costs for banks, leading to higher money supply and higher inflation.

• Repo...read more
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Q10. Different between forward and future contact
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Forward contracts are customized agreements between two parties to buy or sell an asset at a specified price on a future date, while futures contracts are standardized agreements traded on an exchange.
• Forward contracts are private agreements between two parties, while futures contracts are traded on exchanges.

• Forward contracts are customizable in terms of quantity, delivery date, and other terms, while futures contract...read more
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Q11. What is short selling
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Short selling is a trading strategy where an investor borrows a security and sells it with the hopes of buying it back at a lower price.
• Investor borrows a security they do not own

• Sells the borrowed security in the market

• Hopes to buy back the security at a lower price to return to the lender

• Profits from the difference between selling price and buying price
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Q12. Exel short cut
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Q13. Why do you want to work at Northern Trust?
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I want to work at Northern Trust because of its reputation for excellence in financial services and its commitment to employee development.
• Northern Trust has a strong reputation for providing top-notch financial services to clients worldwide.

• I am impressed by Northern Trust's focus on employee development and growth opportunities.

• I believe that working at Northern Trust will allow me to further develop my skills and co
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Q14. What qualifications and experiences make you a suitable candidate for this position?
Ans. 
I have a strong academic background in finance and relevant internship experience in financial analysis.
• Bachelor's degree in Finance

• Internship experience in financial analysis

• Strong analytical skills

• Proficiency in financial modeling

• Excellent communication skills
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Q15. What are your strengths and weaknesses?
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My strengths include analytical skills, attention to detail, and problem-solving abilities. My weaknesses include public speaking and time management.
• Strengths: analytical skills

• Strengths: attention to detail

• Strengths: problem-solving abilities

• Weaknesses: public speaking

• Weaknesses: time management
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Q16. Questions relating to vlook up and Advance excel formula
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Q1. What are derivatives in financial terms?
Ans. 
Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.
• Derivatives can be used for hedging, speculation, or arbitrage.

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

• For example, a call option gives the holder the right to buy a stock at a specified price within a certain time frame.

• Derivatives can be traded on exchanges or over-the-counter (OT
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Q2. Northern trust
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Q3. What is equity
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Equity represents ownership in a company, measured by the value of assets minus liabilities.
• Equity is the value of an asset after deducting any liabilities associated with that asset.

• It represents ownership in a company and can be in the form of common stock, preferred stock, or retained earnings.

• Equity holders have a claim on the company's assets and earnings, and are entitled to voting rights and dividends.

• For exampl...read more
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Q4. What is secondary market
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Secondary market is where existing securities are bought and sold by investors, not from the issuing company.
• Secondary market provides liquidity to investors by allowing them to buy and sell securities after the initial issuance.

• Examples of secondary markets include stock exchanges like NYSE and NASDAQ, where investors trade shares of publicly listed companies.

• In the secondary market, prices of securities are determine...read more
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Q5. What is call and put options and difference
Ans. 
Call and put options are financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specific time period.
• Call option: gives the holder the right to buy an asset at a specified price before a certain date.

• Put option: gives the holder the right to sell an asset at a specified price before a certain date.

• Difference: Call options are used by investors w...read more
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Q6. What is custodian bank
Ans. 
A custodian bank is a financial institution that holds and safeguards assets for individuals, corporations, and other entities.
• Provides safekeeping of assets such as stocks, bonds, and other investments

• Processes transactions related to the assets held

• May also provide additional services such as fund accounting and administration

• Examples include State Street Corporation, BNY Mellon, and J.P. Morgan Chase
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Q7. Tell me about investment bank
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Investment banks are financial institutions that help companies and governments raise capital through issuing securities and providing financial advisory services.
• Provide financial advisory services to clients

• Underwrite securities offerings

• Facilitate mergers and acquisitions

• Trade securities on behalf of clients

• Offer research and analysis on financial markets
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Aptitude was easy and crackable.

Q1. Introduce Yourself
Ans. 
I am a recent graduate with a degree in finance and a passion for data analysis.
• Graduated with a Bachelor's degree in Finance

• Proficient in data analysis tools such as Excel and SQL

• Completed internships in financial analysis

• Strong analytical and problem-solving skills
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Q2. Basic financial concepts and terminologies
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Q1. Tell about ur master thesis
Ans. 
My master thesis focused on the impact of social media on consumer behavior.
• Researched how social media platforms influence purchasing decisions

• Analyzed data from surveys and case studies

• Identified trends in online shopping behavior

• Examined the role of influencers in shaping consumer preferences
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Q2. Why u choose Northern trust?
Ans. 
I chose Northern Trust for its reputation for excellence in financial services and its commitment to client satisfaction.
• Northern Trust has a strong reputation in the financial services industry for its expertise and reliability.

• The company is known for its focus on client satisfaction and building long-term relationships.

• Northern Trust offers a wide range of services and opportunities for professional growth and devel...read more
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