Role-specific Financial Management Interview Questions & Answers:

1. What is alpha of stocks?

The meaning is not very different in the world of investing.
Most people who invest in stocks do so because they want a
return--this is the purpose of investing.
Alpha is the term given to the extra return.

Alpha measures the risk-adjusted return for a given asset.
Knowing the value of an asset that is driven by market
forces means nothing without gauging the risk associated
with owning the asset over a given time period. The best
investment is a stock or asset with a high return and
limited risk.

2. Explain MECHANISM OF ADR?

An American depositary receipt (ADR) is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the US financial markets. Individual shares of the securities of the foreign company represented by an ADR are called American depositary shares (ADSs).

3. What is equity?

equity owner of the share holder

4. What is CDR? Sum of Rs.2,00,000.00 is to be pledged to GOVT in form of CDR. So can any one make me under stand what is CDR and how to fulfill the same. Which bank is advisable for making CDR?

Cash Deposit Receipt.

5. Explain How many types of account?

various types of accounts are....
1) demand deposits or current accounts
2) savings accounts
3) recurring deposits account
4) fixed deposits account
5) dormant accounts
6) joint accounts

6. What do you mean by repo rate & reverse repo rate?

Repo rate the rate at which the RBI lends shot-term money
to the banks against securities.

Reverse Repo rate is the rate at which banks park their
short-term excess liquidity with the RBI.

7. I have received bill from civil work contractor in that they charges Service tax & vat on same amount and Please clarify?

yes. service tax is for service which they provide to you
and vat is WCT(works contract Tax)is for state,

8. What is limit of petty cash book?

Petty cash is used to make cash payments to reimburse/pay
back employees who have paid for expenses on behalf of the
organization. The limit amount is often $50 or $100.