Northern Trust HR Recruiter Interview Questions and Answers

Hedge funds are investment funds that use various strategies to generate high returns for their investors.

• Hedge funds are typically only available to accredited investors due to their high-risk nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds can invest in a wide range of assets, including stocks, bonds, commodities, and currencies.

• Some famous hedge funds include Bridgewater Associates, Ren...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Capital market refers to the market for long-term securities. Money market deals with short-term borrowing and lending.

• Derivatives are contracts between two parties that derive their value from an underlying asset, such as stocks, bonds, commodities, or currencies.

• Capital market is where long-term securities like stocks and bonds are...read more

A bond is a debt security that represents a loan made by an investor to a borrower.

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

• They have a fixed interest rate and a maturity date when the principal is repaid.

• Bonds are generally considered less risky than stocks but offer lower potential returns.

• Investors can buy and sell bonds on the secondary market.

• Examples of bonds include U.S....read more

Fund Accounting is a specialized accounting system used by non-profit organizations and government agencies to track and manage funds.

• It involves tracking and reporting on the financial activity of specific funds or grants.

• It ensures that funds are used for their intended purposes and that financial reports are accurate and transparent.

• Examples include tracking donations to a non-profit organization or managing governm...read more