Provana Backend Associate Interview Questions and Answers for Experienced

Capital market, money markets, money market instruments, derivatives and types of derivatives explained.

• Capital market refers to the market for long-term securities such as stocks and bonds.

• Money market refers to the market for short-term securities such as treasury bills and commercial paper.

• Money market instruments are short-term debt securities with high liquidity and low risk.

• Derivatives are financial instruments w...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 projects.

• Investors can buy and sell securities in the capital market to earn returns on their investments.

• Examples of capital markets include the New York Stock...read more

A financial derivative is a contract between two parties based on an underlying asset or financial instrument.

• A derivative derives its value from an underlying asset such as stocks, bonds, commodities, or currencies.

• It is a financial instrument that allows investors to speculate on the price movements of the underlying asset without owning it.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types o...read more

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

• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Credit derivatives

• Interest rate derivatives

• Currency derivatives

• Commodity derivatives

Investment banking is a type of financial service that helps companies and governments raise capital by underwriting and selling securities.

• Provides financial advice to clients

• Underwrites and sells securities

• Assists in mergers and acquisitions

• Helps clients raise capital

• Examples: Goldman Sachs, JPMorgan Chase, Morgan Stanley

AML analysis is the process of identifying and preventing money laundering activities through online transaction monitoring.

• AML analysis involves the identification of suspicious transactions and the assessment of their risk levels.

• The process includes collecting and analyzing transaction data, conducting customer due diligence, and reporting any suspicious activities to regulatory authorities.

• Online monitoring of tran...read more