80+ Finance Intern Interview Questions and Answers

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

Mergers and acquisitions involve companies combining or one buying another to enhance growth and market presence.

• Disney acquired 21st Century Fox in 2019 for $71.3 billion, expanding its content library and market reach.

• In 2016, Microsoft purchased LinkedIn for $26.2 billion, integrating professional networking with its software services.

• Amazon's acquisition of Whole Foods in 2017 for $13.7 billion allowed it to enter the grocery sector and enhance its delivery services.

• The m...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

Venture capitalists & Private Equity are investors who provide funding to startups and companies in exchange for equity.

• Venture capitalists invest in early-stage startups with high growth potential

• Private equity firms invest in established companies with the aim of improving their operations and profitability

• Both types of investors provide funding in exchange for equity ownership in the company

• Venture capitalists typically invest smaller amounts of money compared to private e...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

Hospital sector is subject to various tax implementations.

• Hospitals are exempted from paying income tax under Section 11 of the Income Tax Act.

• Goods and Services Tax (GST) is applicable on healthcare services provided by hospitals.

• Customs duty is levied on imported medical equipment and devices.

• Property tax is applicable on the land and buildings owned by hospitals.

• Excise duty is applicable on certain medical supplies and equipment.

• Tax incentives are provided to hospitals for...read more

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

Proficient in MS Office, including Excel for data analysis, Word for documentation, and PowerPoint for presentations.

• Excel: Use formulas like VLOOKUP and pivot tables for data analysis.

• Word: Create professional documents with styles, headers, and footers.

• PowerPoint: Design engaging presentations with animations and transitions.

• Excel: Utilize charts to visually represent data trends.

• Word: Implement mail merge for personalized document creation.

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

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value from another column.

• VLOOKUP stands for vertical lookup.

• It is commonly used to find specific data in large datasets.

• The formula requires four arguments: lookup value, table array, column index number, and range lookup.

• The lookup value is the value you want to search for.

• The table array is the range of cells where the data is located.

• The column index number is the column from w...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