Quiz

Finance Quiz For Beginners

10

Total Questions : 100

Scoring System:
Correct Answer    : +4 points
Incorrect Answer  : -1 point
Not Answered      :  0 point

Time Limit:
Each question has a time limit of 10 seconds.

The final result will appear at the end. All The Best!!!
  
  1. The safest place for keeping money
  2. Money lender
    An iron box
    Bank
  3. Gold and silver ornaments should be kept in bank lockers
  4. It is safe
    No risk of theft
    Both
  5. ATM can be used for
  6. Cash withdrawal
    Statement of account
    Both
  7. Bank provides loans for
  8. Home
    Education
    All of above
  9. General Insurance relates to insurance against
  10. Fire
    Burglary
    Both
  11. KYC means
  12. Know your character
    Know your customer
    Both
  13. Loans from money lenders are
  14. With High rate of interest
    No transparency
    All of above
  15. ATM password to be shared only with
  16. Spouse
    Obedient daughter
    None
  17. Life insurance means
  18. Insurance of human
    Insurance of Life of Machines
    Insurance of life of human and Cattle
  19. We should keep our savings with banks because
  20. It is safe
    Can be withdrawn anytime
    Both
  21. Internet Banking Refers To
  22. Opening of account through ATM
    Operation of account through internet
    Both
  23. RTGS Stands For
  24. Real Time Gross Settlemen
    Ready Time Gross Settlement
    Ready Time Grocery Settlement
  25. Can Illiterate Person Be Issued Debit Card?
  26. No
    Yes
    Only in case of joint account
  27. NEFT Stands For
  28. National Electronic Fund Transfer
    National Electric Fund Transfer
    National Electrical Fund Transfer
  29. Education Loans
  30. Cover tuition fee & expenses
    Are repayable after completion of course
    Both
  31. What is the federal funds rate?
  32. The interest rate paid by banks on deposits held by the Federal Reserve.
    The interest rate charged by the Federal Reserve to member banks.
    The interest rate at which banks lend and borrow overnight funds from each other.
  33. What is the prime rate?
  34. The interest rate at which the Federal Reserve lends to member banks.
    The interest rate charged by banks to their most creditworthy customers.
    The interest rate paid by banks on deposits from their customers.
  35. What is an interest rate?
  36. The percentage at which an amount of money is borrowed or invested.
    The cost of goods and services.
    The amount of taxes paid to the government.
  37. What is a treasury bill?
  38. A long-term debt security issued by the US government.
    A short-term debt security issued by the US government.
    A stock issued by the US government.
  39. What is a certificate of deposit (CD)?
  40. A bond issued by the US government.
    A share of ownership in a company.
    A time deposit offered by banks and other financial institutions.
  41. What is a money market account?
  42. An interest-bearing account offered by banks and other financial institutions.
    A short-term debt security issued by the US government.
    A share of ownership in a company.
  43. What is the discount rate?
  44. The interest rate charged by banks to their most creditworthy customers.
    The interest rate at which the Federal Reserve lends to member banks.
    The interest rate paid by banks on deposits from their customers.
  45. What is a fixed interest rate?
  46. An interest rate that fluctuates based on market conditions.
    An interest rate that remains constant for the life of a loan or investment.
    An interest rate that is set by the borrower or investor.
  47. What is a variable interest rate?
  48. An interest rate that fluctuates based on market conditions.
    An interest rate that remains constant for the life of a loan or investment.
    An interest rate that is set by the borrower or investor.
  49. What is inflation?
  50. A general decrease in prices and increase in the value of money.
    A measure of the creditworthiness of a borrower or issuer.
    A general increase in prices and decrease in the value of money.
  51. What is deflation?
  52. A general increase in prices and decrease in the value of money.
    A general decrease in prices and increase in the value of money.
    A measure of the risk associated with a particular investment.
  53. Which type of interest is calculated only on the principal amount?
  54. Simple interest
    Compound interest
    Annual interest
  55. What is a bond?
  56. A share of ownership in a company.
    A certificate of deposit issued by a bank.
    A loan made to a company or government.
  57. What is a yield curve?
  58. A graph that shows the relationship between interest rates and the time to maturity for a set of bonds.
    A measure of the creditworthiness of a borrower or issuer.
    A measure of the risk associated with a particular investment.
  59. What is a credit score?
  60. A measure of the creditworthiness of a borrower.
    A measure of the risk associated with a particular investment.
    A measure of the performance of a particular company or investment.
  61. PAN Means
  62. Permanent Account Number
    Primary Account Number
    None
  63. Education Loans
  64. Cover tuition fee & expenses
    Are repayable after completion of course
    Both
  65. Can Illiterate Person Be Issued Debit Card?
  66. Yes
    No
    Only in case of joint account
  67. NEFT Stands For
  68. National Electrical Fund Transfer
    National Electronic Fund Transfer
    None
  69. RTGS Stands For
  70. Ready Time Gross Settlement
    Ready Time Grocery Settlement
    Real Time Gross Settlement
  71. KYC Means
  72. Know your character
    Know your customer
    Both
  73. What Is RuPay Debit Card?
  74. Introduced by National Payments Corporation of India
    Accepted at all ATMs & PoS machines
    All of above
  75. ATM Password To Be Shared Only With
  76. Obedient son
    Spouse
    None of above
  77. Internet Banking Refers To
  78. Opening of account through ATM
    Operation of account through internet
    Both
  79. In Recurring Deposits,
  80. interest is paid at FDR rate
    a fixed sum is deposited every month
    Both
  81. What is a budget?
  82. A spending plan showing sources and uses of income.
    A limit on spending that cannot be exceeded.
    The amount of money that a credit card will let you charge without penalties.
  83. Your bank just notified you that your 12-month Certificate of Deposit (CD) is maturing. What factors are important to consider before you decide to let it automatically renew?
  84. There is a good chance you might need the funds in a shorter time frame.
    Interest rates have gone up since you opened the CD.
    Both
  85. Which of the following would hurt your credit score?
  86. Paying off student loan debt.
    Closing a long-held credit card account.
    Getting married.
  87. Which savings strategy will get you to $1 million in the bank by age 65, assuming 8% annualized returns?
  88. Save $200 a month, starting at age 20
    Save $400 a month, starting at age 30
    Save $800 a month, starting at age 40
  89. Which of the following would be expected to hold its value best during a time of inflation?
  90. A corporate bond.
    A house.
    A certificate of deposit.
  91. What is the purpose of financial statements?
  92. To provide an overview of a company's financial position
    To track employee performance
    To forecast future market trends
  93. What is the difference between a bond and a stock?
  94. A bond represents a debt obligation, while a stock represents ownership in a company
    A bond pays interest to the investor, while a stock pays dividends
    A bond represents ownership in a company, while a stock represents a debt obligation
  95. What is the time value of money?
  96. The concept that a dollar today is worth less than a dollar in the future.
    The concept that a dollar today is equal to a dollar in the future.
    The concept that a dollar today is worth more than a dollar in the future.
  97. What is diversification?
  98. The process of investing in a single stock
    The process of investing in a single asset class
    The process of investing in multiple asset classes to reduce risk
  99. What is the difference between a mutual fund and an exchange-traded fund (ETF)?
  100. Mutual funds are more tax-efficient than ETFs
    Mutual funds are actively managed, while ETFs are passively managed
    Mutual funds are traded on stock exchanges, while ETFs are traded over-the-counter
  101. What is the difference between a traditional IRA and a Roth IRA?
  102. Distributions from a Roth IRA are tax-free, while distributions from a traditional IRA are not
    Contributions to a Roth IRA are tax-deductible, while contributions to a traditional IRA are not
    Distributions from a traditional IRA are tax-free, while distributions from a Roth IRA are not
  103. What is the difference between a credit score and a credit report?
  104. A credit score is a detailed history of a person's credit usage, while a credit report is a numerical value
    A credit score is a numerical value, while a credit report is a detailed history of a person's credit usage
    A credit score and a credit report are the same thing
  105. What is a balance sheet?
  106. A document that shows a company's revenues and expenses over a specific period of time
    A document that shows a company's cash inflows and outflows over a specific period of time
    A document that shows a company's assets, liabilities, and equity at a specific point in time
  107. What is the process of budgeting?
  108. Allocating income and expenses
    Allocating income only
    Allocating expenses only
  109. What is the time value of money?
  110. The idea that money loses value over time
    The idea that money gains value over time
    The idea that money has the same value over time
  111. What is diversification?
  112. Investing in multiple assets to reduce risk
    Investing in a single asset to reduce risk
    Investing in multiple assets to increase risk
  113. What is liquidity?
  114. The ability to borrow money easily
    The ability to earn a high return on investment
    The ability to convert an asset into cash quickly
  115. What is the difference between stocks and bonds?
  116. Stocks represent a loan to a company, while bonds represent ownership in a company
    Stocks represent ownership in a company, while bonds represent a loan to a company
    Stocks and bonds represent ownership in a company
  117. What is an ETF?
  118. A type of investment fund that trades on stock exchanges
    A type of stock
    A type of bond
  119. What is the difference between a traditional IRA and a Roth IRA?
  120. Withdrawals from a traditional IRA are tax-free, while withdrawals from a Roth IRA are not
    Contributions to a traditional IRA are tax-deductible, while contributions to a Roth IRA are not
    Contributions to a Roth IRA are tax-deductible, while contributions to a traditional IRA
  121. What is a mutual fund?
  122. A type of bond
    A type of stock
    A type of investment fund that pools money from multiple investors to purchase securities
  123. What is the difference between a bull market and a bear market?
  124. A bull market is characterized by falling stock prices, while a bear market is characterized by rising stock prices
    A bull market is characterized by stable stock prices, while a bear market is characterized by volatile stock prices
    A bull market is characterized by rising stock prices, while a bear market is characterized by falling stock prices
  125. What is the purpose of financial planning?
  126. To identify financial goals and develop a plan to achieve them
    To make money quickly
    To invest in high-risk assets
  127. What is the purpose of asset allocation?
  128. To invest in a single type of asset
    To diversify investments across different types of assets
    To invest in high-risk assets
  129. What is a budget deficit?
  130. When government spending exceeds government revenue
    When government revenue exceeds government spending
    When a person spends more than they earn
  131. What is the difference between a savings account and a checking account?
  132. A checking account typically earns interest, while a savings account typically does not.
    A savings account typically earns interest, while a checking account typically does not.
    A savings account and a checking account are the same thing.
  133. What is the difference between a limit order and a market order?
  134. A limit order specifies a maximum price to buy or a minimum price to sell, while a market order executes at the current market price.
    A market order specifies a maximum price to buy or a minimum price to sell, while a limit order executes at the current market price.
    A limit order and a market order are the same thing.
  135. What is a stock split?
  136. When a company issues new shares of stock to existing shareholders
    When a company reduces the number of shares outstanding
    When a company combines multiple shares into a single share
  137. What is a bond?
  138. A type of equity security that represents ownership in a company
    A type of insurance policy
    A type of debt security that represents a loan to a company or government
  139. What is an annuity?
  140. A type of stock
    A financial product that provides regular payments for a specified period or for life
    A type of bond
  141. What is a 401(k) plan?
  142. A type of insurance plan
    A type of retirement savings plan offered by employers
    A type of savings account
  143. What is the difference between a credit score and a credit report?
  144. A credit score is a number that represents a person's creditworthiness, while a credit report is a detailed summary of a person's credit history.
    A credit report is a number that represents a person's creditworthiness, while a credit score is a detailed summary of a person's credit history.
    A credit score and a credit report are the same thing.
  145. Which of the following is not a type of financial statement?
  146. Income statement
    Balance sheet
    Profit and loss statement
  147. What is the difference between revenue and profit?
  148. Revenue is the money left after expenses are deducted, while profit is the total amount of money earned.
    Revenue is the total amount of money earned, while profit is the money left after expenses are deducted.
    Revenue is the total amount of money earned, while profit is the amount of money earned from selling goods.
  149. What is the purpose of financial ratio analysis?
  150. To determine a company's financial health and performance
    To compare financial data from different companies
    To compare financial data from different time periods
  151. What is the term for a type of investment that involves purchasing ownership in a company?
  152. Stock
    Bond
    Certificate of deposit
  153. What is the term for the amount of money that a borrower pays a lender for the use of borrowed funds?
  154. Yield
    Interest
    Principal
  155. What is the term for the process of creating a budget and managing one's money to achieve financial goals?
  156. Finance
    Personal finance
    Accounting
  157. What is the term for the percentage of an investment that is paid out in the form of interest or dividends?
  158. Yield
    Coupon rate
    Capital gain
  159. What is the term for the measure of how much an asset's price changes in response to changes in interest rates?
  160. Convexity
    Yield to maturity
    Duration
  161. What is the term for the price at which an investor can sell an underlying asset in a financial derivative contract?
  162. Strike price
    Spot price
    Market price
  163. What is the term for a type of investment that pools money from multiple investors and uses it to purchase a diversified portfolio of assets?
  164. Exchange-traded fund
    Mutual fund
    Real estate investment trust
  165. What is the term for the total amount of money that a borrower owes on a loan, including both the principal amount and interest?
  166. Principal
    Loan balance
    Interest rate
  167. What is the term for the practice of spreading investments across different asset classes to reduce risk?
  168. Concentration
    Speculation
    Diversification
  169. What is the term for the measure of how much an asset's price changes in response to changes in the overall market?
  170. Beta
    Alpha
    Standard deviation
  171. We should keep our savings with banks because
  172. Can be withdrawn anytime
    It is safe
    Both
  173. What is the term for a type of investment that provides a fixed rate of return for a fixed period of time?
  174. Stock
    Bond
    Mutual fund
  175. What is the term for the amount of money that an investor puts into an investment?
  176. Principal
    Return on investment
    Interest
  177. What is the term for the amount of money that a borrower must pay back to a lender over time, usually in equal installments?
  178. Interest
    Principal
    Amortization
  179. What is the term for the measure of how quickly an asset can be converted into cash without affecting its market price?
  180. Solvency
    Liquidity
    Profitability
  181. What is the formula for calculating simple interest?
  182. P × r × t
    P × r × n
    P × (1 + r)t
  183. What is the formula for calculating compound interest?
  184. P × (1 + r)t
    P × r × t
    P × r × n
  185. What is the term for the amount of money borrowed or invested, also known as the principal?
  186. Rate
    Interest
    Principal
  187. What is the term for the rate at which interest is charged or earned?
  188. Interest
    Rate
    Time
  189. What is the term for the length of time for which interest is calculated?
  190. Time
    Rate
    Interest
  191. A sum of $5,000 is invested at a rate of 6% per annum for 2 years. What is the simple interest earned?
  192. $500
    $400
    $600
  193. A sum of $10,000 is invested at a rate of 8% per annum compounded annually for 3 years. What is the compound interest earned?
  194. $2,208
    $2,944
    $1,800
  195. Which type of interest pays interest on both the principal and any accumulated interest?
  196. Compound interest
    Simple interest
    Annual interest
  197. A sum of $2,500 is invested at a rate of 4% per annum compounded quarterly for 2 years. What is the compound interest earned?
  198. $220.20
    $214.32
    $208.50
  199. Which type of interest is calculated only on the principal amount?
  200. Compound interest
    Simple interest
    Annual interest