Banking Interview Questions Pdf Free Download

COMMERCE Interview Questions for freshers and experienced :-

1. What is commerce?
Commerce refers to and includes all those activities which are necessary to bring goods and services from the place of their origin to the place of their consumption

2. Into how many departments is commerce mainly divided into? Which are they?
Into two. They are

Trade
Aids of trade

3. The trade is sub divided into two divisions, which are they?
Home trade and Foreign trade.

4. Into how many divisions the Home Trade is divided?
Into two they are, Whole sale and retail

5. Which are the two divisions of Whole sale?
They are import trade and export trade

6. When did the commerce begin to grow?
It is began to grow only after the division of labour and development of exchange. Once it started growing, it spread its invisible thread throughout the length and breadth of the world.

7. What is a company?
A company is an incorporated association which is an artificial person, having an independent legal entity, with a perpetual succession, a common seal, a common capital comprised of transferable shares and carrying limited liability.

8. What is Audit?
An audit may be said to be such an examination of books, accounts and vouchers of a business, whether it is in a proper manner for the financial period.

9. What is the minimum number of directors in a Public Company?
Atleast two directors

10.What is public sector?

Central government,
local authorities and
the public corporations that run nationalized industries

11. What is Plant layout?
'Plant layout' means the arrangement and location of different departments and of the machinery and equipment within a department

12. What is Protocol?
The minutes or records of a diplomatic conference; especially a note of agreement on a subsidiary matters which supplements a treaty

13. What is Mortgage?
It is a transaction by which land or any other property may be given as security for repayment of a loan

14. What is Loan?
Something lent for the borrower's temporary use, especially money lent with conditions about repayment and the payment of interest

15. What is an account?
An account is a book-keeping device used in summarizing the increases and decreases in each asset or equity item

16. What is a Balance Sheet?
It is the statement of account which is prepared at the end of every financial year. It gives the total picture of business at the point of time.

17. What is Business?
Business is the sum of activities comprising buying and sellinggoods, manufacturing goods or providing services inorder to make profit.

18. What is Guarantor?
A person who promises that if a second fails to fulfill some obligation, then he will fulfill it instead or pay money upto a specified limit to compensate for any loss caused by the second person's failure

19. What is Quoted price?
It is the price of a share commodity as stated in the official list of the stock exchange commodity market.

20. What is Share?
A unit for reckoning investor's interests in the contributed capital of a company

21. What is the other name for creditorship ?
securitieso Debentures

22. Who is called an Arbirator?
A person chosen by the parties to a dispute to suggest a way of settling the dispute

23. what is a Capital?
The tangible resources of a person or organization, including cash, machinery, land, building, raw material etc. are called capital

24. Who is sleeping partner?
A partner who contributes capital but will not take partin business activities is called a sleeping partner.

25. When did the government institute the Companies Amendment Act?
In February 1963.

26. What is Debit?
It is the term using in double entry book keeping for an entry made on the left-hand side of an account

27. Who is a Floor Trader?
A person, usually a member of the stock exchange entitled to trade on the floor of that exchange is called floor Trader

28. What is Liquid Asset?
The asset of the business which comprises cash or item which can easily and quickly be converted into cash within a period of one year

29. Name the brand mark which has legal restrictions:
Trade Mark

30. What is Stock Market?

An organized market for securities. Also called a 'stock exchange'
The tangible resources of a person or organization, including cash, machinery, land, building, raw material etc. are called capital

31. What is Tap?
A large quantity of securities held by some one who is able to sell to any one who wants to buy is called a tap.

32. What is value Added Tax(V.A.T.)?
The principle of V.A.T. is that tax is levied at each stage of the production of goods or services and on the value added at each stage of the production

33. What is Vital Statistics?
It is the statistics concerned with births, deaths, ages, health, marriages, diseases etc…

34. What is Gratuity?
A gift given especially of a small sum of money given in response to ther service received or anticipated

35. What is Gross National Product (G.N.P)?
It is the total value of all goods and services that are produced by the people of a specified country in an year

36. What is Wage?
It is the remuneration paid to the operative staff whoe output can be directly in an year

37. What is a By-product?
A commonly which can be sold, produced in the process of manufacturing the main product.

38. Which is called a barometer of financial health of a country?
Stock-Exchange

39. A document issued by a vendor giving credit to the debtor is called:
Credit note

40. What is the term used with reference to assurance policies?
Endownment

41. What is Petty Cash?
A small fund of cash held by an institution which is used to make small and urgent payments

42. Who are entitled to take part in the control and management of business in a company?
The board of directors elected by the shareholders

43. In a company who is responsible for considering the legal aspects of company activities?
The company secretary

44. What is a man hour?
It is an unit for measuring employment equivalent to the employment of one person for one hour

45. Which audit is conducted only once in a while and that also when the client desires?
Occasional audit

46. The bailment of goods as security for payment of a debt is called:
Pledge

47. The selection of goodsoffered for sale by an retailer is called:
Assortment

48. What is a person or party to whom an assignment is made called?
Assigne

49. What is Tenor?
A bill of exchange may be payable sometime in the future

50. Which value was measured in gold or equivalent in US dollars?
Par value

51. What is the name of entry which is used in Bank Column cash book to record the money transaction?
Contra entry

52. The fixed cost of producing a quantity of a good divided by the quantity produced is :
Average fixed cost

53. Which is the basic document of a company?
Memorandom of association

54. Minimum number of persons who has to sign the Memorandom of association?
Seven persons in the presence of one witness

55. In the charter of the company while choosing a name which word should not be included?
Co-operative

56. In the name of a company which word should be used at the end?
Limited

57. Which is the most important clauses of the memorandum?
The object clause

58. Which is a document containing a rules and regulations for the internal management of the company?
The article of association

59. What is the maximum number of partners in Banking business?
Ten

60. What is the minimum number of members in a public company?
Seven

61. Which bank note gives the bearer the right to have its face value converted into gold or some other commodity of value equivalent to the amount stated?
Convertible bank-note

62. In which form the co-operative society, distributes its surplus dividends to its members?
In the form of bonus

63. Which is the technique designed to create an artificial market to benefit a businessman?
Rigging the market

64. What is dead time?
Time lost through no fault of the employee and for which he is usually paid at the full rate

65. What is a decision tree?
A diagram of a sequence of decisions, each of which involves choosing between a known number of alternatives and depends on the resultants of the previous decisions

66. What is syndicate?
A group of people working together towards a common objective usually profit is called a syndicate.

67. In the aspect of banking business what is the term used of giving loans to companies on a large scale?
Wholesale banking

68. The profit margin which a retailer of goods obtains form his supplier is called:
Trade discount

69. What is the main distinction between an Auditor and an Accountant?
It is the duty of the auditor to prepare the accounts, The accounts has to be prepared by the accountant where as the auditor is concerned with the detailed and critical examination of the account book

70. What is the term used to indicate a statement of what is owned and what is owed?
Assets and Liability statements

71. How is an asset expressed?
Assets Liabilities = owner's equity

72. What is Subsidy?
It is a method adopted by the government or a company of supporting a price

73. In which organization, every subordinate must obey his superior, whether be likes it or not?
Formal organization

74. Which department is maintained in every modern business house to obtain the good will of the people?
Public relations departments

75. What is Quasi-loan?
It is an arrangement between two persons under which one agrees to meet some of the other's financial obligations on condition that the later reimburses him.

76. Which are the main principles in allocation of office work?
They are specialization, correlation and business connection

77. Who first suggested the separation of manual work from mental labour through the establishment of two department?
Taylor

78. Which are the two deparments suggested by Taylor?
Planning and Operation

79. Which is a chief subsidiary object of auditing?
Detection of Frauds and errors

80. What is Freight?
The money paid to a ship owner for carrying goods by an exporter

81. Who is a journeyman?
A crafts man who, having finished his period of apprenticeship

82. What is a Questionaire?
A document especially reproduced in large numbers containing a set of questions intended to elicit useful information

83. Give another name for parent company?
Holding company

84. What function of the computer ensures that the data are not distorted during processing?
Parity check

85. What is the term used with particular reference to bills of exchange?
Endorsement

86. What is the price at which the supply curve for a good and its demand curve intersect called?
Equilibrium price

87. What is similar to overdraft except that it is comparatively for a longer period?
Cash credit

88. What is the term Ad referendum means?
This term means that although the contract has been signed, certain matters have been left over for consideration when they actually arise

89. What is S.A.Y.E.?
Save While You Earn

90. Who are plural executives?
A group of people (a committee or board) who were given responsibility to exercise authority jointly over Specified activities of others.

91. What is Boomboggling?
It is the wasteful or uneconomic labour indulged in by a firm to boost cost of production.

92. What is Quid proquo?
One thing in return for another consideration

93. What is a paper gold?
Colloquial name for special drawing rights or similar suggested schemes

94. What is Kennedy Round?
A extensive negotiations of multilateral tariff agreements, within the limits set by the General Agreement on Tariffs and Trade, investigated by the late American President Kennedy.

95. What is the Hot money?
It refers to funds that move quickly from one country to another in search of the highest rate of interest.

96. What is a Garnishee order?
It is a court order attaching the funds of the judgement debtor in the hands of a third party in favour of the judgement-creditor.

97. What is a Dead Rent?
A minimum amount payable, for example, on the lease of mine.

98. What is a kite?
A cheque drawn by some one who knows there is no money in the bank account he is drawing on.

99. What is Future Market?
An organized market for buying and selling future contracts

100. What is Free Trade?
The unrestricted international trade either with no customs duties or with customs duties which are used to creat revenue.

101. What is business cycle?
A recurring sequence of changes business activity.

102. What is a Bank?
According to Prof: John pagets "no one or nobody coporate or otherwise can be a banker who does not open current accounts; pay cheques drawn on himself and collect cheques for costomers".

103. What is an exchange bank?
Exchange banks extent financial assistance to foreign trade and deal in foreign exchange.

104. What is Quantitative credit control?
Quantitative credit controls are used when it wants to control the total supply of money

105. What is Qualitative credit control?
Qualitative credit controls are used when it wants to control the use of funds made available by the commercial banks to customers

106. What is Open market operation?
Open market operations imply the purchase and sale of government securities by the Central Bank in the open market.

107. What is V.R.R.?
Variable Reserve Ration

108. Define Endorsement?
'Endorsement' or 'indorsement' is the act of signing the name of the maker of the holder of a negotiable instrument for the purposes of negotiation.

109. What is Sans Frais endorsement?
It is an endorsement where the endorser specifies that the endorsee or any subsequent holder need not incur any expense on the instrument on his account.

110. What is facultative Endorsement?
In a facultative endorsement, the endorser waives some of his rights, like the right to receive notice of dishonor.

111. Define Bill of Exchange?
The negotiable instruments act, 1881 definesa 'bill of exchang' as "an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.

112. What is maturity date?
A bill is said to be matured on the date which it falls due for payment. This date id called the 'due date' or the 'maturity date' of the bill.

113. What is Days of Grace?
A bill falls due only on the third day after the day on which it is stated to be payable. These extra days allowed for the payment of a bill is called the 'Days of Grace'.

114. What is Inland Bill?
Bill drawn and made payable in India as well as bill drawn upon a person residing in India is called an Inland Bill.

115. What is Foreign Bill?
A foreign bill is one which is drawn in India and made payable in a foreign country or drawn on one who is a resident of a foreign country.

116. Define Promissory note?
Negotiable instrument act 1881 defines a promissory note as "an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only, to or to the order of a certain person".

117. What is Insurance?
Insurance is a mechanism through which the sufferings of one man is one man is minimized by sharing it with many men.

118. What is Causa Proxima (Proximate Cause)?
According to this docrine when there are several causes, only the proximated or nearest cause should be considered. The distant and remote cause shall be ignored.

119. What is Re-insurance?
Re-insurance means insuring an already insured risk by the insurer. It is done mainly to reduce the risk of the insurance company by sharing it with other companies.

120. What is Double Insurance?
It is entirely different from re-insurance. In this case the insured insures the same subject matter with more than on insurance company.

121. What is the definition of Chambers of Commerce?
"Chambers of commerce is an voluntary association of merchants, financiers, manufactures and other engaged in business for the purpose of promoting and protecting the interests of its members and of the trade of the country as a whole".

122. Who is an agent?
An agent is a person who is employed by another to represent him in dealing with other parties. The person why is so represented by an agent is called the principle.

123. Into how many types are the agents classifieds?
Into two

General
Special

124. Who is an general agent?
General agent is one who is authorized to undertake work of a general nature. Eg. Managing Director or General Manager of a company.

125. Who is an Special agent?
Special agent is one who is appointed to undertake some special work Eg. Agent appointed to sell a car by its owner

126. Who is Broker?
Brokers acts as intermediaries between two parties, in trade contracts.

127. Who is a Produce Broker?
These brokers arrange for the sale and purchase of agricultural products such as coffee, tea etc..

128. Who is a Stock and Share broker?
They are engaged in the purchase and sale of shares and other securities, of companies as well as Government securities on a stock exchange.

129. Who is a Shipping broker?
They are brokers who transact business connected with ship. They arrange charter parties, procure cargo etc., on the behalf of their principles.

130. Who is a insurance broker?
They arrange various types of insurance in connection with trade.

131. Who is a property broker?
They are mainly engaged in buying and selling fixed assets like land, buildings etc.

132. What is Loco or Ex-factory?
This means the price quoted includes cost of goods plus a nominal profit. The place of delivery would be the suppliers factory or godown. The cost of transport, insurance and other expenses should be met by the buyer.

133. What is F.O.R. (Free On Rail)?
This indicates that the price covers the cost of goods and all other expenses till the goods are put into the railway wagon.

134. What is F.O.B (Free On Board)?
This includes cost of the goods and all other expenses to be incurred in placing the goods on board the ship.

135. What is F.A.S.(Free Along Side)?
This includes all expenses like packing charges, delivery of goods to the side of the ship etc. But it doesn't include charges for putting them on board.

136.What is C & F (Cost & Freight)?
This includes the cost of goods plus the freight charges and other expenses for delivering the goods at the importer's port.

137. What is C.I.F. (Cost Insurance Freight)?
This includes the cost of goods, insurance, freight and all charges upto to the port of import.

138. What is Marine Insurance?
Marine insurance is the oldest kind of insurance. It is that branch of insurance which relates to ships and their cargoes.

139. Which is the oldest stock exchange in India?
Bombay Stock Exchange which was setup in 1887.

140. What is the stock exchange functioning in Kerala called?
Kochi Stock Exchange