What have you learned from your studies that can be applied to a career in investment banking?

Correct Answer: A cheque is basically issued by an individual but a draft is issued by a bank In a demand draft you have to pay before issuing while a check is withdrawn from the account

Correct Answer: Accounts Receivable

Explanation:

The journal entry to record a credit sale is Accounts Receivable. Credit sale is nothing butthe customers pay at the time of buying.

Correct Answer: Golden rules of accounting convert complex book-keeping rules into a set of well defined principles which can be easily studied and applied Real accounts involve machinery, land and building etc Similarly when you credit what goes out, you are reducing the account balance when a tangible asset goes out of the organization Debit All Expenses And Losses, Credit All Incomes And Gains This rule is applied when the account in question is a nominal account Personal-Account ---Debit the receiver ---Credit the Giver Real-Account ---Debit what comes in ---Credit what goes out Nominal-Account ---Debit all expenses and losses ---Credit all income and gains

Correct Answer: Absolutely Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward in the pipeline

Correct Answer: Journal Entries are recorded on a double entry system ie debit and credit concept In order to record a journal entry the following steps need to be followed - Enter the Journal entry number - Enter the Date of transaction - Enter the Debit item (as per the golden principles of accountancy) - Enter the corresponding GL folio number - Enter the Debit amount - Enter the credit item(as per the golden principles of accountancy) - Enter the amount in the credit column - Provide a brief description of the transaction - leave a single line before next transaction

Correct Answer: CRR or Cash Reverse Ratio is the amount of money that a commercial bank has to keep with the Reserve Bank of India If the bank increase CRR then the amount with RBI comes down and vice-versa

Correct Answer: ?Bill Discount? is a settlement of the bill, where your electricity bill or gas bill is sold to a bank for early payment at less than the face value and the bank will recover the full amount of the bill from you before bill due date For example, electricity bill for XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to 20% discount to the face value Here, the bank will buy the electricity bill for $900 whose face value is $1000, now the bank will recover, full amount of bill from the customer ie $1000 If the customer fails to pay the bill, the bank will put interest on the outstanding bill and ask the customer for the payment

Correct Answer: fractional reserves

Explanation:

Most modern banking systems are based on Fractional reserves.

 

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

1. In a fractional reserve banking system banks can create money through the lending process.

2. A fractional reserve banking system is susceptible to bank panics.

3. Bank panics are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.

Correct Answer: Budgetary Control is establishment of budgets and the continuous comparison of actual results with the planned results It computes the variances and after that management takes necessary actions to maintain favorable variations, through revision of the budgets

Correct Answer: 1770

Explanation:

Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-32.