Interview Questions 1. Give an example of a product which exhibits habitual buying.

Purchase of salt

2. What are the various methods of Sampling? Simple random sampling Systematic sampling Stratified sampling Cluster sampling

3. Give an example of a lifestyle store. Eg. Nike

4. What is meant by footfalls? In business Footfall means No. of people entering the store or no. of people visiting a shop or a chain of shops in a period of time is called footfall.

5. What is Primary Data? Data observed or collected directly from first-hand experience. It gives the information about the result of an experiment or observation. 6. What is a Non Performing Asset (NPA)? A loan that is not meeting its stated principal and interest repayments is called nonperforming asset or NPA. Any commercial loans which are more than 90 days overdue are usually classified as nonperforming assets by banks 7. Describe Working capital gap. Working capital gap = total current assets outstanding current liabilities. A gap to be met from long term resources of the borrowers and from short term loans from banks 8. What is EMI? EMI is equated monthly installment. EMI is monthly basis repayment of the loan amount taken. A loan amount, be it home loan, car loan or personal loan is paid back through a
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Interview Questions

series of monthly payments. The monthly payment is in the form of post dated cheques drawn in favor of lender. EMI are paid until the total amount due is paid up. EMI is directly proportional to the loan amount taken and inversely proportional to time period. That is if loan amount increases the EMI amount increases too and if time period increases the EMI amount decreases.

9. What is hedging? Hedging means reducing or controlling risk. This is done by taking a position in the futures market that is opposite to the one in the physical market with the objective of reducing or limiting risks associated with price changes. 10. Describe various types of risks in financial system. Credit risk Liquidity risk Settlement risk Systematic risk