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Hedra42 said:
What was the circumstances of the interview in which the question was asked? Was it something that all internship/placement people expect to go through, or was this interview out of the ordinary? I wonder if there is something more to this.

Oh yeah these are common, just to see how you're getting on. At this point, you're hired and they've given you a job because they like you as a candidate, good companies will do this with students because for them it's still about learning the world of work.