Accounting and Finance problems
- 1. The primary Economic function of the Financial system is to
Options- A. Providing experts advice to investors and savers
- B. Match one person's savings with another person's investment
- C. Keeping interest rates low
- D. Match one person's consumpion expenditure with another person's capital expenditure Also asked in: CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk, Analyst
Correct Answer: Match one person's savings with another person's investment
- 2. 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 Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: inversely with the price level
- 3. Patents, Copyrights and Trademarks are examples of
Options- A. Short-term investments
- B. Fixed assets
- C. Long-term investments
- D. Intangible assets Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Intangible assets
Explanation:
Intangible asset that consists of original creative work manifested in a tangible form that can be legally protected. Intellectual property consists of copyrights, patents, trade-marks and trade secrets. Examples include literary or artistic works, business methods and industrial processes.
- 4. Commercial banks are funded through which of the following?
Options- A. Stock holders
- B. Government funding
- C. Services
- D. Customer deposits Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Customer deposits
Explanation:
A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.
Commercial banks are funded through customer deposits. These banks make money by providing loans and earning interest income from those loans. The types of loans a commercial bank can issue vary and may include mortgages, auto loans, business loans and personal loans. A commercial bank may specialize in just one or a few types of loans.
Customers who deposit money into these accounts effectively lend money to the bank and are paid interest. However, the interest rate paid by the bank on money they borrow is less than the rate charged on money they lend.
- 5. 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 Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: There are not sufficient funds in your accoun
Explanation:
NSF means - Not Sufficient Funds.
- 6. The accounting software Tally was developed by
Options- A. Wipro
- B. TCS
- C. HCL
- D. Infosys Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: TCS
Explanation:
Tally is one of the best business accounting software for accounting, inventory, payroll. It is economical and one of the most popular ERP software solutions available in the industry.
Tally, an accounting software was developed by the multinational company TCS - Tata Consultancy Services.
- 7. 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 Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: By investing their earnings back into their original investment
- 8. 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 Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: independent internal verification
Explanation:
Reconciling the bank statement monthly is an example of independent internal verification
- 9. 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 Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: the money has to remain in the account for a specified period of time
Explanation:
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.
CD's are generally issued by commercial banks
- 10. 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 Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: deposits at the Federal Reserve Bank and vault cash
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