Finance Quiz: Part 1
Total Questions : 100 Scoring System: Correct Answer : +4 points Incorrect Answer : -1 point Not Answered : 0 point The final result will appear at the end. All The Best.
- The safest place for keeping money
- Gold and silver ornaments should be kept in bank lockers
- ATM can be used for
- Bank provides loans for
- General Insurance relates to insurance against
- KYC means
- Loans from money lenders are
- ATM password to be shared only with
- Life insurance means
- We should keep our savings with banks because
- Internet Banking Refers To
- RTGS Stands For
- Can Illiterate Person Be Issued Debit Card?
- NEFT Stands For
- Education Loans
- What is the federal funds rate?
- What is the prime rate?
- What is an interest rate?
- What is a treasury bill?
- What is a certificate of deposit (CD)?
- What is a money market account?
- What is the discount rate?
- What is a fixed interest rate?
- What is a variable interest rate?
- What is inflation?
- What is deflation?
- Which type of interest is calculated only on the principal amount?
- What is a bond?
- What is a yield curve?
- What is a credit score?
- PAN Means
- Education Loans
- Can Illiterate Person Be Issued Debit Card?
- NEFT Stands For
- RTGS Stands For
- KYC Means
- What Is RuPay Debit Card?
- ATM Password To Be Shared Only With
- Internet Banking Refers To
- In Recurring Deposits,
- What is a budget?
- 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?
- Which of the following would hurt your credit score?
- Which savings strategy will get you to $1 million in the bank by age 65, assuming 8% annualized returns?
- Which of the following would be expected to hold its value best during a time of inflation?
- What is the purpose of financial statements?
- What is the difference between a bond and a stock?
- What is the time value of money?
- What is diversification?
- What is the difference between a mutual fund and an exchange-traded fund (ETF)?
- What is the difference between a traditional IRA and a Roth IRA?
- What is the difference between a credit score and a credit report?
- What is a balance sheet?
- What is the process of budgeting?
- What is the time value of money?
- What is diversification?
- What is liquidity?
- What is the difference between stocks and bonds?
- What is an ETF?
- What is the difference between a traditional IRA and a Roth IRA?
- What is a mutual fund?
- What is the difference between a bull market and a bear market?
- What is the purpose of financial planning?
- What is the purpose of asset allocation?
- What is a budget deficit?
- What is the difference between a savings account and a checking account?
- What is the difference between a limit order and a market order?
- What is a stock split?
- What is a bond?
- What is an annuity?
- What is a 401(k) plan?
- What is the difference between a credit score and a credit report?
- Which of the following is not a type of financial statement?
- What is the difference between revenue and profit?
- What is the purpose of financial ratio analysis?
- What is the term for a type of investment that involves purchasing ownership in a company?
- What is the term for the amount of money that a borrower pays a lender for the use of borrowed funds?
- What is the term for the process of creating a budget and managing one's money to achieve financial goals?
- What is the term for the percentage of an investment that is paid out in the form of interest or dividends?
- What is the term for the measure of how much an asset's price changes in response to changes in interest rates?
- What is the term for the price at which an investor can sell an underlying asset in a financial derivative contract?
- 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?
- What is the term for the total amount of money that a borrower owes on a loan, including both the principal amount and interest?
- What is the term for the practice of spreading investments across different asset classes to reduce risk?
- What is the term for the measure of how much an asset's price changes in response to changes in the overall market?
- We should keep our savings with banks because
- What is the term for a type of investment that provides a fixed rate of return for a fixed period of time?
- What is the term for the amount of money that an investor puts into an investment?
- What is the term for the amount of money that a borrower must pay back to a lender over time, usually in equal installments?
- What is the term for the measure of how quickly an asset can be converted into cash without affecting its market price?
- What is the formula for calculating simple interest?
- What is the formula for calculating compound interest?
- What is the term for the amount of money borrowed or invested, also known as the principal?
- What is the term for the rate at which interest is charged or earned?
- What is the term for the length of time for which interest is calculated?
- A sum of $5,000 is invested at a rate of 6% per annum for 2 years. What is the simple interest earned?
- 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?
- Which type of interest pays interest on both the principal and any accumulated interest?
- 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?
- Which type of interest is calculated only on the principal amount?
Money lender
An iron box
Bank
It is safe
No risk of theft
Both
Cash withdrawal
Statement of account
Both
Home
Education
All of above
Fire
Burglary
Both
Know your character
Know your customer
Both
With High rate of interest
No transparency
All of above
Spouse
Obedient daughter
None
Insurance of human
Insurance of Life of Machines
Insurance of life of human and Cattle
It is safe
Can be withdrawn anytime
Both
Opening of account through ATM
Operation of account through internet
Both
Real Time Gross Settlemen
Ready Time Gross Settlement
Ready Time Grocery Settlement
No
Yes
Only in case of joint account
National Electronic Fund Transfer
National Electric Fund Transfer
National Electrical Fund Transfer
Cover tuition fee & expenses
Are repayable after completion of course
Both
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.
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.
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.
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.
A bond issued by the US government.
A share of ownership in a company.
A time deposit offered by banks and other financial institutions.
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.
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.
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.
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.
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.
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.
Simple interest
Compound interest
Annual interest
A share of ownership in a company.
A certificate of deposit issued by a bank.
A loan made to a company or government.
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.
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.
Permanent Account Number
Primary Account Number
None
Cover tuition fee & expenses
Are repayable after completion of course
Both
Yes
No
Only in case of joint account
National Electrical Fund Transfer
National Electronic Fund Transfer
None
Ready Time Gross Settlement
Ready Time Grocery Settlement
Real Time Gross Settlement
Know your character
Know your customer
Both
Introduced by National Payments Corporation of India
Accepted at all ATMs & PoS machines
All of above
Obedient son
Spouse
None of above
Opening of account through ATM
Operation of account through internet
Both
interest is paid at FDR rate
a fixed sum is deposited every month
Both
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.
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
Paying off student loan debt.
Closing a long-held credit card account.
Getting married.
Save $200 a month, starting at age 20
Save $400 a month, starting at age 30
Save $800 a month, starting at age 40
A corporate bond.
A house.
A certificate of deposit.
To provide an overview of a company's financial position
To track employee performance
To forecast future market trends
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
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.
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
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
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
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
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
Allocating income and expenses
Allocating income only
Allocating expenses only
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
Investing in multiple assets to reduce risk
Investing in a single asset to reduce risk
Investing in multiple assets to increase risk
The ability to borrow money easily
The ability to earn a high return on investment
The ability to convert an asset into cash quickly
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
A type of investment fund that trades on stock exchanges
A type of stock
A type of bond
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
A type of bond
A type of stock
A type of investment fund that pools money from multiple investors to purchase securities
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
To identify financial goals and develop a plan to achieve them
To make money quickly
To invest in high-risk assets
To invest in a single type of asset
To diversify investments across different types of assets
To invest in high-risk assets
When government spending exceeds government revenue
When government revenue exceeds government spending
When a person spends more than they earn
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.
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.
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
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
A type of stock
A financial product that provides regular payments for a specified period or for life
A type of bond
A type of insurance plan
A type of retirement savings plan offered by employers
A type of savings account
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.
Income statement
Balance sheet
Profit and loss statement
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.
To determine a company's financial health and performance
To compare financial data from different companies
To compare financial data from different time periods
Stock
Bond
Certificate of deposit
Yield
Interest
Principal
Finance
Personal finance
Accounting
Yield
Coupon rate
Capital gain
Convexity
Yield to maturity
Duration
Strike price
Spot price
Market price
Exchange-traded fund
Mutual fund
Real estate investment trust
Principal
Loan balance
Interest rate
Concentration
Speculation
Diversification
Beta
Alpha
Standard deviation
Can be withdrawn anytime
It is safe
Both
Stock
Bond
Mutual fund
Principal
Return on investment
Interest
Interest
Principal
Amortization
Solvency
Liquidity
Profitability
P × r × t
P × r × n
P × (1 + r)t
P × (1 + r)t
P × r × t
P × r × n
Rate
Interest
Principal
Interest
Rate
Time
Time
Rate
Interest
$500
$400
$600
$2,208
$2,944
$1,800
Compound interest
Simple interest
Annual interest
$220.20
$214.32
$208.50
Compound interest
Simple interest
Annual interest
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