1) What are debentures?

Ans)
A Debenture is " A certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return and the principal amount whenever the debenture matures

2) Tell me about an experience in which u had to use tact

Tact and diplomacy are important qualities in retail banking ? the customer is (almost!) always right. You may have to tell an account holder diplomatically why they can't have a loan for example, without provoking them into moving their account elsewhere. To answer this type of question, think through everything you have done in the last five years ? school, university, sports, clubs, societies, travel, vacation jobs etc. and try to think of situations where you had to demonstrate this and other qualities ? do this before your interview. If you have completed a number of employer application forms, then you should already have done this as this type of question is now common on application forms.

3) What is the difference between journal entry and ledger?

A journal is also called as a book of prime entry. transactions occurred are first entered in this book to show which accounts should be debited and which should be credited. on the basis of entries made in the journal, accounts are prepared, the book which contains the accounts is called a ledger. transactions entered in the journal are classified according to their nature and posted in their respective accounts in ledger. it is also called as book of final entry.

4) Corruption is the price we pay for democracy.discuss?

Yes I support this question with reason that now a days wrong people are being selected in the right position and as corruption rates are hiking such that they are going to touch heights in near future. Yes, its true somewhere. Democracy supports freedom, and the people involve in corruption demand for bribe. considering that they are authorized to use their power. By promoting them we are paying them and fulfilling their monetary demands everywhere, like train, traffic, govt.offices etc. And the people suffered from these having the feeling that at a point of time when he/she will be powerful, will recover that money from another.

5)please give me the name of nationalize banks in 1980only?

The Government of Indian First phase 14 Nationalized banks: 1. Bank of India 2. Union Bank of India 3. Bank of Baroda 4. Bank of Maharashtra 5. Punjab National Bank 6. Indian Bank 7. Indian Overseas Bank 8. Central Bank of India 9. Canara Bank 10. Syndicate Bank 11. United Commercial Bank 12. Allahabad Bank 13. United Bank of India 14. Dena Bank 2nd phase 6 banks in 80s 1. Andhra Bank 2. Corporation Bank 3 New Bank of India 4. Oriental Bank of Commerce 5. Punjab and Sindh Bank 6. Vijaya Bank

6)what is trial balance?

It is statement of balances of all the accounts in the ledger prepared to prove the arithmetical accuracy of the books of accounts. A trial Balance is a list of Debit and Credit or a list of Debit & Credit Balance of all the ledger accounts prepared on any particular date"

7)what did the s&p 500 close at yesterday?

Another question designed to make sure that a candidate is sincerely interested in finance. This question (and others like it - "What's the Dow at now?" "What's the yield on the Long Bond?") can be expected especially of those looking for sales and trading positions.

8)what is the difference betwn Real money and nominal money?

Nominal money is related to the measure of counting. nominal<br>figure is what is written on the bill. where as real money<br>relates to it's purchasing power.<br>for eg:<br>if 10 units in nominal money can buy 2 chocolates in 1980 and <br>1 chocolate in 2000, in the same way, 10 units of nominal<br>money is 10units of real money in 1980 and 5 units of real<br>money in 2000.

9)what is the difference between P & L ac and income & expenditurestatement?

P&L A/c is prepared for the Business Organization whose aim is to earn profit by running business whereas Income & Expenditure A/c is prepared for the non-Profit Organization,Trusts etc.

10) who is more senior creditor, bondholder or stockholder?

The bondholder is always more senior. Stockholders (including those who own preferred stock) must wait until bondholders are paid during a bankruptcy before claiming company assets. According to the classification, the claim of bond holder should be accounted first. After fulfilling all the claims of bond holder company should look after the stock holder.

11)why one rupee note is signed by the ministry of finance? Is governer has the right to sign this note? Is there any interference by the RBI?
as rupess is the currency of our country and only govt has the authority to issue indian currency it has been signed ny ministry of finance, all other notes are bearer notes which are signed by governor. no interference by rbi. RBI has the right to print currency notes in the country except coins & 1 Re note which are issued by Govt. Thus, it bears the sign of MoF.

12)what is the punch line of job?

No matter how efficiently goods / services are produced, if they cannot be delivered to the customer in the quickest possible time it is vain. no matter how efficientley and effectiveley provide services to the society satisfied the consumer needs,wants,demands is most important

13)when should a company issue stock rather than debt to fund its operations?
There are several reasons for a company to issue stock rather than debt. The first is if it believes its stock price is inflated, and it can raise money (on very good terms) by issuing stock. The second is when the projects for which the money is being raised may not generate predictable cash flows in the immediate future. A simple example of this is a startup company. The owners of startups generally will issue stock rather than take on debt because their ventures will probably not generate predictable cash flows, which is needed to make regular debt payments, and also so that the risk of the venture is diffused among the company's shareholders. A third reason for a company to raise money by selling equity is if it wants to change its debt-to-equity ratio. This ratio in part determines a company's bond rating. If a company's bond rating is poor because it is struggling with large debts, they may decide to issue equity to pay down the debt. According to me,the sprit of writer may be right but explanation is wrong.in second point he explaned that company raise funds by equity because venture is not able to generate enough funds to make regular debt payments but in this case shareholders or venture capitalist will also not invest in that company which is not profitable as shareholders expectations of return are generally higher than creditors as they bear higher risk.Even a businessman will not like to do a business wich is not profitable instead he will park his money somewhere else. The main reasons for raising funds through equity are:1.When project is long term in nature and payback period is high. 2.When company is already debt laden then it will not be very easy to raise debt or it will be costly,it will be better to raise equity to balance risk level.

14)what is RAROC?
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.

15)what is Demat account? What is the use of it?

Demat means Dematerialisation of share, in simple it is an account with which a person can trade in security market without which a person cannot buy or sell any share in security market.

16) what is treasury Bills?

Treasury Bills are money market instruments to finance the short term requirements of the Government of India. These are discounted securities and thus are issued at a discount to face value. 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

17)why would an investor buy preferred stock?

An investor that wants the upside potential of equity but wants to minimize risk would buy preferred stock. The investor would receive steady interest-like payments (dividends) from the preferred stock that are more assured than the dividends from common stock. (2.) The preferred stock owner gets a superior right to the company's assets should the company go bankrupt. (3.) A corporation would invest in preferred stock because the dividends on preferred stock are taxed at a lower rate than the interest rates on bonds. most of investors are like to invest there investments on risk free assets which has get regular incomes without much fluctuation

18)what is accounting management?

Accounting management is the pratical application of management techniques to control and report on the financial health of the organisation. It involves the analysis, planning, implementation and cotrol of programs designed to provide financial data reporting for managerial decision making.

19)can I carry Indian currency to other countries and convert it there itself eg:- UK,USA?
Look your question is having little confusion. Still what I understand is like this. All most all the international markets are integrated through various technology and web. Thus it is well known as OTC(over the counter). Therefore you can carry any currency to foreign country and get it converted over there. Even banks offer this service....you can covert currency from your home through some clicks on your computer mouse.

20)what is call option?

Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Call option gives the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before, depending upon the type of option (American/European) at given future date

21)Hw has your portfolio performed in the last five years?

If you are applying for an investment management firm as an MBA, you'd better have a good answer for this one. Also, if you think you are going to say it has outperformed the S&P each year, you better be well prepared to explain why you think this happened.

22)xplain derivatives in terms of capital markets?

The term derivative indicates that it has no independent value that is its value is entirely derived from the values of the underlying assets. The underlying asset can be securities, commodities , bullion, currency, livestock or anything else.

23)is it true that Indian currency has to be converted in foreigh exchange before going to other countries?
Of course. There is no ambiguity ,conversion is must.e.g if u go to England u can not do any transaction through INR. You have convert it to GBP (Currency of England). Thus wherever u go to foreign country u need to convert to that respective currency.There are some theories upon which conversion rate is determined. For further study u could refer to any International financial management book.

The basic reason behind this requirement is that, if govt. or ministry of external affairs will allow the outflow of Indian currency to any other country without converting it to respective country's currency then the Indian currency might be used for illegal activity. also the strength of the economy is somewhere evaluated by having foreign currency. if a country holding larger foreign currency, they could make payment for import transactions. so if the Indian govt. allows the INR to be outflow then they are indirectly allowing other countries to be stronger when they will intend to make transactions with Indian merchandise.

24)what is EFt?
EFT is short for Electronic Funds Transfer. An EFT is a method of transferring money from one bank account directly to another account without any paper money actually changing hands. The two accounts do not have to be in the same bank.

25)what are the most important qualities for an investment banking career?
This question is actually a question about your academic qualifications and the thoughts with which you have decided to join the profession of investment banking. To answer this question perfectly, you would have to go back to your books and understand the concepts that were taught to you in business school. Make sure that you put across the point that being good with numbers, being in the knowledge of current and past market status, and having a good financial strategy that is unfailing are some of the most important qualities for a career in investment making.

26)what is crossover rate?

Crossover rates have to do with the amount of earnings that are generated by two different but similar projects. The crossover rate is the point at which the two projects achieve the same net present value. In terms of investments, calculating a crossover rate between two similar securities can help an investor determine what to buy and what to sell.

27)being the finance manager of a company how you make finance forecasting?
First I will review the previous year's financial statements to get an Idea about the financial operations. Then will discuss with the management about the current year's targets (viz. sales / services) & their growth expectations. Based on that will prepare provisional P&L acct & Balance sheet. I also will check whether there is any posibility in cost cutting and make the adjustments accordingly to arrive at expected profit.

28)what is networth?
Networth is the total assets minus total liabilities of a company. Networth means equity and it is the current assets minus current liabilities of a company.

29)what is demat account? What is the use of it?

Demat means Dematerialisation of share, in simple it is an accout with which a person can trade in security market without which a person cannot buy or sell any share in security market. Demat account is a share holder's account .Who used the account in trading of shares

30)what kind of stocks would you issue for a startup?

A startup typically has more risk than a well-established firm. The kind of stocks that one would issue for a startup would be those that protect the downside of equity holders while giving them upside. Hence the stock issued may be a combination of common stock, preferred stock and debt notes with warrants (options to buy stock).

31)what is retained earnings?

When a company or corporation earns a profit or surplus, that money can be put to two uses it can either be re-invested in the business called retained earnings or it can be paid to the shareholders as a dividends. the profits which earned by the company can be reinvested in the business,without giving the dividends to the shareholders that year

32)what is the internal rate of return of eurekaforbes?

Internal Rate of Return is that rate of Return at which the net present value is equal to Zero or it is the Rate which equates the present value of the cash inflows to the cash outflows. NPV = Cash Inflow - Cash outflow NPV = Zero it is the sum of discountes cash inflows equals to the discounted cash ouflows

33)what is Beta?
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. It is the sensitivity of the asset with regards to its market. Say, if it is 2..that means if market go up by 5%, that asset will go up by 10%, it can even be negative, which is known as negative corelated,where asset will perform inverse to that of market.

34)what is the entry for depreciation?

Depreciation Account Dr Accumulated Depreciation Account Cr depreciation means decreasing value of asset is called as depreciation

35)what is discount cash flow management?

The DCF for an investment is calculated by estimating: the cash that you will have to pay out, and the cash which you expect to receive back. The timeframes that you expect to receive the payments must also be estimated. Each cash transaction must then be recalculated, by subtracting the opportunity cost of capital between now and the moment when you will pay or receive the cash. Those cash flows which has considering the time factors of money in respect on cost of capital is know as discounted cash flow...

36)if you read that a given mutual fund ha given 50% returns last year, would you invest in it?
You should look for more information, as past performance is not necessarily an indicator of future results. How has the overall market done? How did it do in the years before? Why did it give 50% returns last year? Can that strategy be expected to work continuously over the next five to 10 years? You need to look for answers to these questions before making a decision. I would also look what is the risk that was involved in grtting this returna and whether my risk appetite matches with it or not.Another thing i would look at is the diversification among different sectors or not.And last but not the least we can not predict exactly whether the mutual fund will give the exact return in all the kinds of market.

37)what is bull market?

A financial market of a group of securities in which prices are rising or are expected to rise.

38)what is outsource?
Outsourcing is a strategic management model wherein business processes are transferred to another company. The concept is: to let a third party service provider perform the management and/or day-to-day execution of one or more business functions. This third party service provider is Insourcing those same processes. Outsourcing occurs when a company uses an outside firm to provide a necessary business function that might otherwise be done in-house. It is different from Subcontracting, because the function is provided on an ongoing basis, rather than for a specific project. It can be provided on the same or another location, in the same country or in a separate country (Offshoring). In its most advanced form, outsourcing makes it possible to build a large, entirely virtual company with only a single employee: the entrepreneur himself. Outsourcing often refers to the process of contracting to a third-party.[1] While outsourcing may be viewed as a component to the growing division of labor encompassing all societies, the term did not enter the English-speaking lexicon until the 1980s. Since the 1980s, transnational corporations have increased subcontracting across national boundaries. In the United States, outsourcing is a popular political issue,,,

39)what is inflation?
In economic terms, inflation is the rise in the prices of goods and services in the given economy over a period of time. As the prices rise, each unit of the country's currency will buy fewer goods and services. when the purchasing power of a currency go down then more money comes to the market it is called inflation.

40)what is authorized capital?

Authorized capital is the maximum capital that a company is authorized to raise. share capital of the company stated in the memorandum of association and approve the registered of the company

41)what is your investing strategy?

Different investors have different strategies. Some look for undervalued stocks, others for stocks with growth potential and yet others for stocks with steady performance. A strategy could also be focused on the long-term or short-term, and be more risky or less risky. Whatever your investing strategy is, you should be able to articulate these attributes.

42)