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Q:

Why one rupee note is signed by the ministry of finance? is governer has the right to sign this note? is there any interference by the RBI? 

Answer:



Q:

Which of the following investment choices is least risky?

A) Renting B) Bonds
C) Flipping D) CD's
 
Answer & Explanation Answer: D) CD's

Explanation:

CDs are the least risky investment choice when compared to flipping, renting and bonds.

A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are generally issued by commercial banks.

CDs are issued by the bank and are guaranteed by the government. So even if the bank goes bankrupt the investor's money is guaranteed to a certain extent.

Flipping and renting are subjected to market fluctuations while bonds are not insured.

 

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Q:

What is true about personal financial planning?

A) Personal financial planning is the process of creating and achieving financial goals B) Our financial decisions decrease once we reach adulthood
C) A family's resources are unlimited D) There are two means for achieving financial goals—you either need to increase your spending or reduce savings
 
Answer & Explanation Answer: A) Personal financial planning is the process of creating and achieving financial goals

Explanation:

Personal financial planning is the process of creating and achieving financial goals.

 

True statements regarding personal financial planning:

As we age, the number and complexity of the financial decisions that we make increases.

There are two means for achieving financial goals—you either need to increase your savings or reduce spending.

A family's resources are limited.

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Q:

Capitalism is characterized by which of the following?

A) Profits B) A market economy
C) Privately owned businesses D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:

Capitalism is an economic system followed by a country or a society which is characterized by Privately owned businesses, a market economy and profits.


Capitalism is defined as "production for exchange" driven by the desire for personal accumulation of money receipts in such exchanges, mediated by free markets. The markets themselves are driven by the needs and wants of consumers and those of society as a whole in the form of the bourgeois state.

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Q:

Diversification is important in investing because

A) It ensures that you only make low-risk investments. B) It helps you to balance your risk across different types of investments.
C) It helps you gain the highest rate of return despite any risks. D) It increases your overall risk, which guarantees that you will make more money.
 
Answer & Explanation Answer: B) It helps you to balance your risk across different types of investments.

Explanation:
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1 56
Q:

Someone who loans money is called

A) Lender B) Borrower
C) Investee D) Investor
 
Answer & Explanation Answer: A) Lender

Explanation:

Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender.

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1 59
Q:

Galloping inflation is also known as

A) Hyperinflation B) Jumping inflation
C) Moderate inflation D) None
 
Answer & Explanation Answer: B) Jumping inflation

Explanation:

Galloping inflation is also known as jumping inflation.

 

It refers to a type of inflation that occurs when the prices of goods and services increase at the two-digit or three-digit rate per annum.

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Q:

Comprehensive income includes all of the following except

A) expenses B) contributions by owners
C) extraordinary items D) losses
 
Answer & Explanation Answer: B) contributions by owners

Explanation:

Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses.

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Q:

Cheque deposited but not cleared means

Answer

A Bank Reconciliation Statement is a statement prepared periodically by a customer to explain the divergence (difference) between the bank balance as per cash book and the bank balance as per Pass Book. It clearly shows the two differing balances and the outstanding items which causes the balances to disagree.


The objective of preparing such a statement is to know the causes of differences between the two balances and pass necessary correcting or adjusting entries in the books of the firm. But it is to be noted that some differences are automatically adjusted. For example - A cheque that has been sent for collection, but not yet collected, causes a difference between the balance as shown by the pass book and the balance as shown by the cash book, but no adjusting entry is required in the cash book for such a difference because, the bank will credit the firm’s account as soon as the cheque is collected.

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