TCS Interview Questions and Answers

Microeconomics focuses on individual economic agents and their interactions, while Macroeconomics studies the economy as a whole.

• Microeconomics examines the behavior of individual consumers and firms, focusing on supply and demand for specific goods and services.

• Macroeconomics looks at the economy as a whole, analyzing factors such as inflation, unemployment, and economic growth.

• Microeconomics deals with issues like pricing of goods, consumer behavior, and production costs.

• Ma...read more

The US market is currently experiencing volatility due to factors such as trade tensions, interest rates, and economic indicators.

• Trade tensions between US and China have led to uncertainty in the market

• Interest rates set by the Federal Reserve impact borrowing costs and investment decisions

• Economic indicators such as GDP growth, unemployment rate, and consumer spending provide insights into the overall health of the economy

P/E ratio compares stock price to earnings, while dividend is a portion of company's profits distributed to shareholders.

• P/E ratio is a valuation metric calculated by dividing stock price by earnings per share.

• Dividend is a portion of company's profits distributed to shareholders as cash payments.

• P/E ratio helps investors assess the stock's valuation, while dividends provide income to shareholders.

• Companies with high P/E ratios may not pay dividends, as they reinvest profits ...read more

Equity represents ownership in a company, typically in the form of stocks or shares.

• Equity represents ownership in a company

• It is often in the form of stocks or shares

• Equity holders have a claim on the company's assets and earnings

• Equity can be bought and sold on the stock market

• Equity value can fluctuate based on the company's performance and market conditions

Value stocks are undervalued by the market, while growth stocks have high potential for future earnings growth.

• Value stocks are typically characterized by low price-to-earnings (P/E) ratios and high dividend yields.

• Growth stocks are companies that are expected to grow at a rate significantly above the average for the market.

• Value stocks are often considered safer investments, while growth stocks are more volatile.

• Examples of value stocks include utility companies and establis...read more

Interest rate hikes by the FED typically lead to lower share prices due to increased borrowing costs and reduced consumer spending.

• Interest rate hikes increase borrowing costs for companies, leading to lower profits and reduced investment in growth opportunities.

• Higher interest rates also make bonds more attractive compared to stocks, leading investors to shift their investments away from equities.

• Consumer spending may decrease as borrowing costs rise, impacting companies' re...read more

P/E ratio measures stock price relative to earnings, while dividend is a portion of company profits distributed to shareholders.

• P/E ratio compares stock price to earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

• Dividend is a portion of company profits distributed to shareholders as a form of return on their investment.

• P/E ratio helps investors assess the valuation of a stock, while dividends provide income to shareholders.

• Compan...read more