Banking and Financial Terms

There are certain financial terms that are frequently asked in all the Bank Interviews and examinations. (4 minutes read)

There are certain banking and financial terms that are frequently asked in all the bank Interviews, examinations, commerce quiz competition and various other instances. These terms are useful not only for your interviews and examinations but also for your general knowledge. Knowledge and understanding of important banking and financial terms play a very crucial role as you pursue a career in the banking and financial industry.

Also, these terms are useful for Financial Aspirants pursuing Chartered Accountancy or Chartered Financial Analyst certification courses, Economics & Commerce students, Masters of Business Administration aspirants and students preparing for other similar level exams.

Knowing basic financial terms not only gives you an edge over other candidates but also shows your interest level for the job. For example, Bond does not only mean ‘007’ but can also mean ‘publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed amount of principal at maturity’.

Everyone might have heard of the term credit rating as you encounter situations where you need to apply for a credit card or loan or even make an investment. It is, therefore, essential for one to know the exact meaning of it. ‘A credit rating is an assessment of the likelihood of an individual or business being able to meet its financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the financial strength of the issuer for investors’.

Similarly, a book value may not necessarily mean retail price of a book. But, could also mean ‘The amount of stockholders’ equity in a firm equals a number of the firm’s assets minus the firm’s liabilities and preferred stock’.

To ease your efforts on finding out terms, we have created a corpus of such terms.

Click Financial Terms to get access to all the terms. Happy Learning.

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