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“Financial Management frequently Asked Questions by expert members with experience in Financial Management. So get preparation for the Financial Management job interview”



8 Financial Management Questions And Answers

1⟩ 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.

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5⟩ 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).

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6⟩ 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

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8⟩ 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.

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