Statestreet HCL Services Risk Operations Analyst Interview Questions and Answers

Mutual funds pool money from multiple investors to invest in diversified assets managed by professionals.

• Types of mutual funds include: Equity Funds (e.g., large-cap, mid-cap funds).

• Debt Funds (e.g., government bonds, corporate bonds).

• Hybrid Funds (e.g., balanced funds that invest in both stocks and bonds).

• Index Funds (e.g., funds that track a specific index like S&P 500).

• Money Market Funds (e.g., short-term debt i...read more

Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold.

• Capital markets facilitate the raising of capital by companies and governments.

• Examples include stock exchanges like the NYSE and bond markets.

• They are divided into primary markets (new issues) and secondary markets (existing securities).

• Investors can trade stocks, bonds, and other financial instruments.

• Capital ma...read more

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health.

• Current Assets include cash, inventory, and receivables.

• Current Liabilities include accounts payable and short-term debt.

• Positive working capital indicates good short-term financial health.

• Example: A company with $200,000 in current assets and $150,000 in current liabilities has $50,0...read more

Swaps are financial derivatives where two parties exchange cash flows or liabilities based on different financial instruments.

• Types of swaps include interest rate swaps, where fixed and floating interest rates are exchanged.

• Currency swaps involve exchanging principal and interest in different currencies, useful for hedging foreign exchange risk.

• Commodity swaps allow parties to exchange cash flows related to commodity p...read more