This IBM exam is designed to provide certification for Real-time Monitoring developers. These individuals are in charge of the configuration, modeling, and maintenance of IBM Cognos Real-Time Monitoring applications. Individuals with this type certification will be newer to this area but will still be able to function effectively in this position and as members of teams. View full article »
Category: Finance Quiz
Some of my friends wanted to know more about the concepts and mechanics of time value, I have tried to put few examples along with it.
The process of discounting future cash flows converts them into cash flows in present value terms. Conversely, the process of compounding converts present cash flows into future cash flows.
Time Value Principle 1: Cash flows at different points in time cannot be compared and aggregated (i.e. added). All cash flows have to be brought to the same point View full article »
I am a big fan of this book , it was written well before the financial crisis but was well clear enough to describe how the 
wall street operates. I love to re read some of the books from my shelf and Infectious greed is one of them. Well Infectious greed in a great book to read, the author of the book is Frank Partnoy who has also written FIASCO : Blood in the water on Wall Street.
Infectious greed consists of great literature on the financial engineering, financial innovation focused on structural finance and of course the misuse of the derivatives over the time by the street smart bankers. View full article »
- Wall Street suffers fresh blow as Washington Mutual collapses; JPMorgan buys bank’s assets for $1.9 b
- The US suffered the biggest ever bank failure in its history, with Washington Mutual, better known as WaMu, collapsing on Thursday.
- WaMu, the largest savings and loan institution and fourth largest bank in the US was seized by regulators and delivered into the hands of JP Morgan Chase. Under the government-brokered deal, JPMorgan will pay $1.9 billion to the banking regulator and acquire all insured and uninsured deposits, assets and some liabilities of WaMu’s banking operations, including its mortgage portfolio. The government had no choice. Shares in WaMu, with its large exposure in home mortgages, credit cards and other retail lending products had become almost worthless in the past few months. As retail depositors’ fears grew, people began to withdraw money, forcing the Office of Thrift Supervision, WaMu’s main regulator in the US fractured regulatory system, to close it down.
- In the US, where over 600,000 jobs have been lost this year and 9.4 million people are estimated to be currently looking for employment.
1) “This is a stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.”
ANS: Acid test ratio
2) This phrase is Latin for “according to value”. It is a tax based on the assessed value of real estate or personal property
ANS: Ad valorem tax
3) An interest rate swaps whose notional value adjusts according to rising interest rates by indexing the floating portion to a Constant Maturity Swap (CMS).
ANS: Air bag swap
4) In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner’s profit, leaving him or her with negative cash flow.
ANS: Alligator Property
5) A sheet of paper attached to a bill of exchange for the purpose of documenting endorsements.
ANS:Allonge
6) An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource.
ANS: Agflation
7) The the two companies whose CEOs’ve resigned recently on account of huge losses suffered by the companies due to subprime crisis in USA
ANS : Merriyl lynch CEO- Stanley O’Neal ,Citigroup CEO -Charles Prince
8) In the world of jargon, what is this:
” The effect of complex and extensive accounting rules that regulate financial statement reporting and are thought to distort a company’s true operating performance.
ANS: Accounting noise
9)“If you can’t beat them, don’t join them, rather make them irrelevant.” This is the essence of which business strategy?
ANS: Blue Ocean Strategy
10)What is the claim to fame of a product named ‘Epsom Salt’?
ANS:World’s first patented product.
