Bank Jobs Interview Questions And Answers part 3

Do banks have various risks?

Yes banks have mainly three kinds of risk that are

Credit Risk that is about Loans

Market Risk that is about Money Investment in Market

Operational Risk that is day to day working risk.

Difference Between demand Draft and Cheque?

Cheque could be define as a negotiable instrument which is paid to the bearer and on the other side a demand draft can be define as a negotiable instrument always payable on order base.

If we divide Banks Capital Into Parts and what are they?

Paid Up Capital + Reserves

Borrowed Funds + General Loss Reserves + Subordinated Term Debts + Undisclosed Reserves

You must have heard that banking turning thier branches into CBS? So what is CBS?

Full form of CBS is Core Banking Solution. Through this system all the branches of bank is interconnected with each other with a central database server as we know that Online branch. Through this facility if we have account in one branch then we can operate it from other branch too as after this system customers do not have to visit the same branch from far away where they have open an account.

What do you know about Para Banking?

In Para Banking there are such services which bank offer to its customers other than their day by day banking service like debit card, Credit Card, Car Loan, Life Insurance etc.

What is the main difference between Micro Finance and Micro Credit?

Micro Credit is a small term in which customer can get small amount of loan from the bank and on other side Micro Finance is a wide tern which includes Small Loans as well as the complete training on this Financial Matters.

If we want to promote Financial Inclusion of our bank then what are the Steps?

Advertisement of the bank so that more and more customers could be attract

Facilities for poor people so that they can also open their account

Those person who are involved in the agriculture profession should be provided with the Kisan credit card.

What do you know about Cash Reserve Ratio (CRR)?

Cash Reserve Ration is the cash of the Bank deposit in the State Bank of Pakistan.

What is Inflation and Deflation?

Inflation could be define as increase in demand of a product due to decrease in Supply or more demand in the market and in deflation the money in the market is low due to which the purchasing power of people decreases.