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Home Interview Accounting and Finance Comments

  • Question
  • How can investors receive compounding returns?


  • Options
  • A. By investing their earnings back into their original investment
  • B. By diversifying their investment portfolio
  • C. By selecting a savings account that has a higher interest rate
  • D. By transferring their earnings back into high-risk investment

  • Correct Answer
  • By investing their earnings back into their original investment 

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


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    • 1. The accounting software Tally was developed by

    • Options
    • A. Wipro
    • B. TCS
    • C. HCL
    • D. Infosys
    • Discuss
    • 2. A check returned by the bank marked nsf means

    • Options
    • A. Cheque has been forged
    • B. Cheque can't be cashed being illegal
    • C. There are not sufficient funds in your accoun
    • D. Bank can't verify your identity
    • Discuss
    • 3. Commercial banks are funded through which of the following?

    • Options
    • A. Stock holders
    • B. Government funding
    • C. Services
    • D. Customer deposits
    • Discuss
    • 4. Patents, Copyrights and Trademarks are examples of

    • Options
    • A. Short-term investments
    • B. Fixed assets
    • C. Long-term investments
    • D. Intangible assets
    • Discuss
    • 5. The value of money varies

    • Options
    • A. inversely with the price level
    • B. directly with the price level
    • C. directly with the volume of employment
    • D. directly with the interest rate
    • Discuss
    • 6. Reconciling the bank statement monthly is an example of

    • Options
    • A. establishment of responsibility
    • B. independent internal verification
    • C. documentation procedures
    • D. segregation of duties
    • Discuss
    • 7. What is true about certificates of deposit?

    • Options
    • A. the money has to remain in the account for a specified period of time
    • B. they are the most liquid account available
    • C. they offer lower interest rates than savings accounts
    • D. All the above
    • Discuss
    • 8. The reserves of a commercial bank consist of

    • Options
    • A. the bank's net worth
    • B. the amount of money market funds it holds
    • C. government securities that the bank holds
    • D. deposits at the Federal Reserve Bank and vault cash
    • Discuss
    • 9. In a fractional reserve banking system

    • Options
    • A. bank accepts deposits
    • B. bank accepts some loans
    • C. bank has some cash reserves
    • D. All the above
    • Discuss
    • 10. Compounding interest means interest accrues

    • Options
    • A. at variable rates throughout the term
    • B. more quickly than simple interest
    • C. more slowly than simple interest
    • D. at the same rate as simple interest
    • Discuss


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