70+ Finance Intern Interview Questions and Answers for Freshers

The country's current economic condition is stable but facing challenges.

• The GDP growth rate has slowed down in the past year.

• Unemployment rate has increased slightly.

• Inflation is under control but rising prices of essential commodities are a concern.

• Government policies and reforms are being implemented to boost economic growth.

• Exports have been affected by global trade tensions.

• Stock market performance has been volatile.

• Foreign direct investment has shown positive growth.

• Inc...read more

Warren Buffett, George Soros, Peter Lynch, Benjamin Graham are some famous persons of share market.

• Warren Buffett is known as the Oracle of Omaha and is one of the most successful investors of all time.

• George Soros is a hedge fund manager and philanthropist who famously made a billion dollars in a single day by shorting the British pound.

• Peter Lynch is a former mutual fund manager who is known for his investment strategy of 'investing in what you know'.

• Benjamin Graham is cons...read more

A merger and acquisition is a corporate strategy involving the combination of two or more companies into a single entity.

• Mergers and acquisitions are commonly used to achieve growth, diversification, or synergy.

• A merger occurs when two companies agree to combine their operations and assets to form a new company.

• An acquisition happens when one company purchases another company, becoming its new owner.

• Mergers and acquisitions can be friendly or hostile, depending on the agreeme...read more

Communicate with the stakeholder to understand the reason for the delay and work together to find a solution.

• Initiate a conversation with the stakeholder to discuss the missed deadline and understand the reasons behind it.

• Express the importance of timely delivery of contents and the impact of the delay on the project.

• Collaborate with the stakeholder to come up with a plan to mitigate the delay and ensure timely delivery in the future.

• Set clear expectations and deadlines for f...read more

The P/E ratio is calculated to assess the relative value of a company's stock by comparing its price to its earnings.

• P/E ratio helps investors determine if a stock is overvalued or undervalued.

• A high P/E ratio suggests that investors have high expectations for future earnings growth.

• A low P/E ratio may indicate that a stock is undervalued or that the company is facing challenges.

• P/E ratio is commonly used in fundamental analysis to compare companies within the same industry.

• F...read more

Taxation is the process of collecting money from individuals and businesses by the government to fund public services.

• Taxation is an important source of revenue for the government to fund public services like healthcare, education, and infrastructure.

• It is mandatory for individuals and businesses to pay taxes on their income, property, and goods and services they purchase.

• The tax system varies from country to country and can be progressive, proportional, or regressive.

• Future ...read more

Share is a unit of ownership in a company. Our finance minister is Nirmala Sitharaman. Mutual fund is a type of investment where money is pooled from multiple investors to invest in various securities.

• Share represents a portion of ownership in a company

• Finance minister of India is Nirmala Sitharaman

• Mutual fund is a type of investment where money is pooled from multiple investors

• Mutual funds invest in various securities such as stocks, bonds, and money market instruments

• Invest...read more

My interest in finance grew from a blend of academic exposure and personal experiences with investments and economic trends.

• Studied economics in high school, which sparked my curiosity about market dynamics.

• Participated in a stock market simulation game, where I learned about trading strategies and risk management.

• Interned at a local bank, gaining hands-on experience in financial analysis and customer service.

• Attended finance workshops and seminars, connecting with profession...read more

I have gained practical knowledge in accounting and finance through coursework, internships, and hands-on projects.

• Completed coursework in financial accounting, covering topics like balance sheets and income statements.

• Interned at a local accounting firm, assisting with tax preparation and client financial analysis.

• Utilized Excel for budgeting and forecasting, creating models to project cash flows for a mock business.

• Participated in a finance club, where I analyzed stock mark...read more

I have a passion for photography and have won a few local competitions.

• I have been practicing photography as a hobby for the past 5 years

• I have won first place in a local photography competition for landscape photography

• I also enjoy portrait photography and have done a few shoots for friends and family

• I believe my attention to detail and creativity in photography translates well to finance

TDS stands for Tax Deducted at Source. Excel can be used to calculate TDS amounts and generate reports.

• TDS is a tax deducted by the payer at the time of making payment.

• Excel can be used to calculate TDS amounts based on specified rates and generate reports for TDS deductions.

• Formulas in Excel can be used to calculate TDS amounts automatically based on income and tax rates.

• Excel can also be used to create TDS certificates for employees or vendors.

• Using Excel functions like SUM...read more

Accounting focuses on recording and reporting financial transactions, while Finance deals with managing assets and liabilities.

• Accounting involves recording, classifying, and summarizing financial transactions.

• Finance focuses on managing assets, liabilities, and investments to achieve financial goals.

• Accounting provides historical financial information, while Finance uses this information to make future financial decisions.

• Accounting is more about compliance and accuracy, whi...read more

Wealth management focuses on overall financial planning and goals, while portfolio management is more focused on managing investments within a portfolio.

• Wealth management involves comprehensive financial planning, including retirement planning, tax planning, and estate planning.

• Portfolio management involves selecting and managing investments within a portfolio to achieve specific financial goals.

• Wealth management takes a holistic approach to a client's financial situation, wh...read more

Golden rules of accounting are basic principles to maintain financial records. GST is a tax system implemented in India.

• Golden rules of accounting are: a) Debit the receiver, credit the giver b) Debit what comes in, credit what goes out c) Debit all expenses and losses, credit all incomes and gains

• GST stands for Goods and Services Tax, a tax system implemented in India in 2017

• GST replaced multiple indirect taxes like VAT, service tax, excise duty, etc.

• GST has 4 tax slabs - 5%...read more

Finance focuses on managing assets and investments, while accounting deals with recording and reporting financial transactions.

• Finance is concerned with the future and involves planning and managing investments, e.g., portfolio management.

• Accounting focuses on the past and involves tracking financial transactions, e.g., preparing financial statements.

• Finance includes activities like budgeting, forecasting, and risk management, e.g., analyzing market trends.

• Accounting includes...read more

Wealth management focuses on holistic financial planning, while portfolio management emphasizes investment strategies and asset allocation.

• Wealth management encompasses a broad range of financial services, including estate planning, tax advice, and retirement planning.

• Portfolio management is primarily concerned with managing investment portfolios to achieve specific financial goals.

• Wealth managers often cater to high-net-worth individuals and families, providing personalized ...read more

Portfolio management focuses on investment strategies, while wealth management encompasses broader financial planning and services.

• Portfolio management primarily deals with managing investments in stocks, bonds, and other assets to achieve specific financial goals.

• Wealth management includes investment management but also offers financial planning, tax advice, estate planning, and retirement planning.

• For example, a portfolio manager might focus on maximizing returns on a clien...read more

GameStop stock surge and subsequent fall due to Reddit group's coordinated buying.

• GameStop stock price surged from $20 to $347 in January 2021

• Reddit group r/WallStreetBets coordinated buying of GameStop stock

• Hedge funds lost billions due to short positions on GameStop

• Robinhood and other trading platforms restricted buying of GameStop stock

• GameStop stock price fell to around $40 in the following weeks

The new tax regime was introduced in India in 2020, offering taxpayers the option to choose between the old and new tax slabs.

• The new tax regime has lower tax rates but fewer deductions and exemptions.

• Taxpayers can choose between the old and new tax regimes based on which one is more beneficial for them.

• The new tax regime is aimed at simplifying the tax structure and reducing the tax burden on taxpayers.

• The new tax regime has seven tax slabs, ranging from 5% to 35%.

• Some of th...read more

TDS rates vary based on the type of income and are governed by different sections of the Income Tax Act.

• TDS rate for salary income is as per the individual's tax slab

• TDS rate for interest income is usually 10%

• TDS rate for rent income is 10% if the annual rent exceeds Rs. 2.4 lakhs

• TDS rate for professional fees is 10%

• TDS rate for commission income is 5%

I chose valuation as my domain because of my interest in analyzing financial statements and understanding the true worth of a company.

• I have a strong background in accounting and finance, which has given me a solid foundation in financial analysis.

• Valuation is a critical aspect of finance, as it helps investors make informed decisions about which companies to invest in.

• I find it fascinating to analyze financial statements and understand the underlying factors that drive a com...read more

TDS stands for Tax Deducted at Source. It is a tax deduction made at the time of payment.

• TDS is deducted by the payer and deposited with the government on behalf of the payee.

• The rate of TDS varies depending on the type of payment and the nature of the transaction.

• TDS can be calculated by applying the applicable TDS rate on the total payment amount.

• For example, if the TDS rate is 10% and the payment amount is $1,000, the TDS amount would be $100.

Finance refers to the management of money and investments, including budgeting, saving, lending, and investing.

• Finance involves managing money and investments

• It includes activities such as budgeting, saving, lending, and investing

• Finance helps individuals and organizations make informed financial decisions

• Examples of finance include personal budgeting, corporate finance, and investment banking

Yes, it is helpful in my future.

• Having a finance internship will provide me with practical experience and skills that are valuable in the finance industry.

• It will enhance my understanding of financial concepts and processes.

• I will have the opportunity to network with professionals in the field and potentially secure future job opportunities.

• The internship will also allow me to apply theoretical knowledge gained in my studies to real-world scenarios.

• I can learn about different...read more

Share market is a platform where stocks and securities are traded among investors.

• It is also known as stock market or equity market.

• Companies issue shares to raise capital and investors buy and sell these shares.

• The prices of shares are determined by supply and demand.

• Share market indices like S&P 500 and Dow Jones Industrial Average track the performance of the market.

• Investors can make profits through capital gains or dividends.

• Share market is regulated by government bodies...read more

Advance tax is a system of paying tax in advance based on estimated income for the year.

• Advance tax is a method of paying a portion of your taxes before the end of the financial year.

• It is applicable to individuals, self-employed professionals, and businesses with tax liabilities above a certain threshold.

• The purpose of advance tax is to ensure regular inflow of taxes to the government and prevent tax evasion.

• Failure to pay advance tax may result in penalties and interest cha...read more

Ad sales involve selling advertising space or time to businesses or individuals to promote their products or services.

• Ad sales is a key revenue stream for media companies, including TV networks, websites, and magazines.

• Sales representatives work to secure advertising deals by pitching the benefits of their platform to potential clients.

• Ad sales can involve selling traditional ad placements like TV commercials or print ads, as well as digital advertising like banner ads or spo...read more