Financial Analyst Interview Questions in City of London, England | Glassdoor.co.in

Financial Analyst Interview Questions in City of London, England

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What is liquidity?

2 Answers

the ability for an asset to be turned into cash. Ex. accounts receivable or money market securities are VERY liquid....While PPE are illiquid.

Liquidity can mean a variety of different things depending on the context but in general without loss of generality: If I have an asset worth say; £150,000 then the liquidity of this object would be £150,000 in cash. An example is owning real estate, then selling it. Liquidity is important in finance as you need the ability to buy assets. That can only occur if you have the cash (the liquidity) to do so.

If you have to evaluate the business of a retail bank, what would you look in the balance sheet/financial statement?

Describe the different debt facilities of a LBO transactions.

1 Answer

Is it more risky for a bank having more mortgages or bonds/marketable assets in their balance sheet?

Task: Interviewers gave me a balance sheet+financial statements with two years' value for a bank. After 2-3 minutes: "Have a look and tell us what you can say about this bank"

Describe in layman's terms the difference between a future and an option.