Financial management process deals with

Correct Answer: 1 A fixed budget is established for a specific level of activity whereas flexible budget is prepared for various levels of activity 2 Fixed budget cannot be changed after the period commences, whereas a flexible budget can be changed after the period commence 3 Fixed budget is more suitable for fixed expenses whereas flexible budget takes both fixed as well as variable expenses in account 4 Fixed budget includes only fixed costs, whereas a flexible budget includes fixed costs, variable costs and semi variable costs 5 Fixed budget is mainly used in planning stage whereas flexible budget is used in controlling stage

Correct Answer: 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.

Correct Answer: It helps you to balance your risk across different types of investments.

Correct Answer: 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.

Correct Answer: A Treasury Bill (known as T-Bill) is an instrument of money market, used to finance short term requirements of Government of a country A T-Bill is issued at a rate lower than the Face value, and redeemed at Face value on maturity, this difference is the rate of interest on T-Bill This rate of interest is called Risk free Rate of the country

Correct Answer: 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.

Correct Answer: Fixed Minimum Reserve System

Explanation:

RBI issued currency notes under Fixed Minimum Reserve System.

Correct Answer: 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.

Correct 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

Correct Answer: RAROC is a risk-adjusted framework for profitability measurement and profitability management It is a tool for measuring risk-adjusted financial performance And it provides a uniform view of profitability across businesses (Strategic Business Units / divisions) RAROC and related concepts such as RORAC and RARORAC are mainly used within (business lines of) banks and insurance companies RAROC is defined as the ratio of risk-adjusted return to economic capital