Associate Analyst 2

Associate Analyst 2 Interview Questions and Answers

Updated 24 Mar 2024

Q1. Explain the types of variances, In detail examples. How would you analysis the cost change during standard costing.

Ans.

Types of variances in standard costing include material, labor, and overhead variances. Analysis involves comparing actual costs to standard costs.

Material variance: the difference between actual material costs and standard material costs. Example: purchasing materials at a higher price than expected.
Labor variance: the difference between actual labor costs and standard labor costs. Example: paying workers overtime when it was not budgeted for.
Overhead variance: the differenc...read more

Q2. What are Types of Swaps and Different swap Products.

Ans.

Swaps are financial contracts between two parties to exchange cash flows. Types include interest rate, currency, commodity, and equity swaps.

Interest rate swaps involve exchanging fixed and floating interest rate payments.
Currency swaps involve exchanging principal and interest payments in different currencies.
Commodity swaps involve exchanging cash flows based on the price of a commodity.
Equity swaps involve exchanging cash flows based on the performance of an underlying sto...read more

Q3. What are the steps involved in Money Laundering?

Ans.

Money laundering involves several steps to disguise the origins of illegally obtained funds.

Placement: Introducing illegal funds into the financial system.
Layering: Conducting complex financial transactions to obscure the audit trail.
Integration: Reintegrating laundered funds back into the legitimate economy.
Examples: Buying expensive assets, using shell companies, transferring funds through multiple accounts.

Q4. What are the 5 red flags in AML?

Ans.

Red flags in AML include unusual transactions, inconsistent customer behavior, high-risk jurisdictions, lack of proper documentation, and frequent cash transactions.

Unusual transactions: Large, frequent, or unexplained transactions may indicate money laundering.
Inconsistent customer behavior: Sudden changes in transaction patterns or customer information can be a red flag.
High-risk jurisdictions: Transactions involving countries known for money laundering activities are suspi...read more

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Q5. What is Money Laundering?

Ans.

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.

Money laundering involves disguising the origins of illegally obtained money by passing it through a complex sequence of banking transfers or commercial transactions.
The purpose of money laundering is to make the money appear as if it comes from a legitimate source, thus avoiding ...read more

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