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Finance Interview FAQ

Sameer Medhekar (Student) (4140 Points)

06 January 2009

Answer these frequently asked finance questions

1)Status of India's GDP, market capitalisation exports, imports?

2) what is Sinking fund ?

3) What is money - M1, M2, M3?

4) What are negotiable instruments?

5) Tell us 3 ratios used to judge a company

.....waiting for ur replies...all the best guys...

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4 Replies

CA. Rajeev Aggarwal (Chartered Accountant) (3424 Points)
Replied 06 January 2009

For 5)

EBITA Margins

Debt-equity ratios

Current Ratio

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Sameer Medhekar (Student) (4140 Points)
Replied 06 January 2009

More questions are also invited which you know

Jeet Biswas (ACMA (in Service)) (5073 Points)
Replied 07 January 2009

Ans3 is:

M0: currency (notes and coins) in circulation and in bank vaults. M0 is usually called the monetary base - the base from which other forms of money (like checking deposits, listed below) are created - and is traditionally the most liquid measure of the money supply

M1: currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler's checks. M1 represents the assets that strictly conform to the definition of money: assets that can be used to pay for a good or service or to repay debt. Although checks linked to checking deposits are gradually becoming less popular, debit cards linked to these deposits are becoming more popular. Like checks, debit cards, as a means to complete a transaction through their links to checkable deposits, can also be considered as a form of money

M2: M1 + savings deposits, time deposits less than $100,000 and money market deposit accounts for individuals. M2 represents money and "close substitutes" for money. [9] M2 is a key economic indicator used to forecast inflation

M3: M2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. M3 is no longer measured by the US central bank