Finance Questions

Q:

Distinguish between speculator and hedger?

Answer

The main difference lies in the motive of the two parties. The main motive of the hedger is to hedge(minimize) the risk from the occurence of some events. 


The motive of the speculator is to gamble in the market in order to make the profit by buying/selling the derivative products.


 

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Subject: Finance

2 2367
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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Exam Prep: Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 2351
Q:

What is Bull Market?

Answer

Bull market is that market where stock value are expected rise and people will have tendency to sell their stock so as to earn profit out of it. Thus sudden push from the suppliers will gradually niutalise the market.


 

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Subject: Finance

0 2347
Q:

RBI issued currency notes under which system

A) Maximum Fiduciary System B) Proportional Reserve System
C) Fixed Fiduciary System D) Fixed Minimum Reserve System
 
Answer & Explanation Answer: D) Fixed Minimum Reserve System

Explanation:

RBI issued currency notes under Fixed Minimum Reserve System.

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3 2126
Q:

Demand is said to be inelastic when

A) Percentage change in demand is less than the percentage change in price of the good B) Percentage change in demand is greater than the percentage change in price of the good
C) Percentage change in demand is equal to the percentage change in price of the good D) None of the above
 
Answer & Explanation Answer: A) Percentage change in demand is less than the percentage change in price of the good

Explanation:

Demand is said to be inelastic, when the demand for the good doesn't change much or it is negotiable when the price of the good changed.

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1 2114
Q:

Insurance can help you to protect against

A) unexpected accidents B) illegal consent
C) Both A & B D) None of the above
 
Answer & Explanation Answer: A) unexpected accidents

Explanation:

Insurance can help you to protect your properties and assets like home, car, stocks,... against unexpected accidents.

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0 2091
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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Subject: Finance Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1965
Q:

Which cost is an example of a variable cost?

A) raw materials B) raw materials
C) labor D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Variable costs are expenses that vary in proportion to the amount of goods or services that a business produces. 

Examples of variable cost include labor, packaging and raw materials.

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1 1957