2
Q:

What is money market? 

Answer:



Q:

When referring to student loans, what is a grace period?

Answer

The grace period is in which time period students are not to be worried to repay the loans in that period.

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Subject: Finance Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 36
Q:

What is the objective of Financial Reporting?

Answer

Financial Reporting involves the disclosure of financial information to the various stakeholders about the financial performance and financial position of the organization over a specified period of time. These stakeholders include – investors, creditors, public, debt providers, governments & government agencies.


Financial Reporting is very important and critical task of an organization. It is vital part of Corporate Governance.


 


The objectives & purposes of financial reporting :–


 


* Providing information to management of an organization which is used for the purpose of planning, analysis, benchmarking and decision making.


 


* Providing information to investors, promoters, debt provider and creditors which is used to enable them to male rational and prudent decisions regarding investment, credit etc.


 


* Providing information to shareholders & public at large in case of listed companies about various aspects of an organization.


 


* Providing information about the economic resources of an organization, claims to those resources (liabilities & owner’s equity) and how these resources and claims have undergone change over a period of time.


 


* Providing information as to how an organization is procuring & using various resources.


 


* Providing information to various stakeholders regarding performance management of an organization as to how diligently & ethically they are discharging their fiduciary duties & responsibilities.


 


* Providing information to the statutory auditors which in turn facilitates audit.


 


* Enhancing social welfare by looking into the interest of employees, trade union & Government.

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Subject: Finance Exam Prep: AIEEE , Bank Exams , CAT
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0 58
Q:

Financial management process deals with

A) Financing decisions B) Investments
C) Both A & B D) None of the above
 
Answer & Explanation Answer: A) Financing decisions

Explanation:

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management.

 

Hence, it deals with Financial decisions.

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1 201
Q:

Which payment type can help you stick to a budget?

A) Payday loans B) Cash advances
C) Debit cards D) Credit cards
 
Answer & Explanation Answer: C) Debit cards

Explanation:

There are two payment types that will help you stick to your budget.

1. Cash
2. Debit Card

The amount in the debit card is the only amount you can spend to stay within budget.

These method work because once you spend your money, you are done. You don’t have anything else to spend.

 

Credit cards, payday loans, and cash advances are all loans on future income. When you use a credit card, there is always just a little bit more you can spend. These types do not help you budget properly. In fact, these types encourage you to spend beyond your means and be out of budget.

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0 171
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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0 308
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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0 268
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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0 287
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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