Relationship Manager - Business Banking Interview Questions and Answers

Financial ratios are tools used to analyze a company's financial performance. They help in making informed decisions and comparisons.

• Financial ratios are used to evaluate a company's financial health and performance.

• They help in identifying trends and patterns in a company's financial statements.

• Ratios can be used to compare a company's performance with its peers or industry standards.

• Some common financial ratios include liquidity ratios, profitability ratios, and solvency ra...read more

Current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. Leverage ratio measures a company's debt level.

• Current ratio = Current assets / Current liabilities

• Leverage ratio = Total debt / Total assets

• Current ratio shows the liquidity of a company

• Leverage ratio shows the financial risk of a company

• A higher current ratio is better, while a higher leverage ratio indicates higher risk

• For example, a company with a current ratio of 2:1 ...read more

I will sell NJ mutual fund by highlighting its strong performance, benefits, and suitability for the client's financial goals.

• Educate the client on the benefits of investing in NJ mutual fund such as diversification, professional management, and potential for high returns.

• Tailor the recommendation to the client's financial goals, risk tolerance, and investment timeline.

• Provide historical performance data and comparisons with other similar funds to showcase the fund's track re...read more

Current ratio is a financial ratio that measures a company's ability to pay its short-term obligations.

• Current ratio is calculated by dividing current assets by current liabilities.

• It is used to assess a company's liquidity and short-term financial health.

• A ratio of 1 or higher is generally considered good, indicating that the company can meet its short-term obligations.

• However, a very high current ratio may indicate that the company is not using its current assets efficientl...read more