FinFit FL Assessment_Corporates_25yrs above

     When you are buying a stock, you get a small piece of

• a.      Risk of company

• b.      Debt of company

• c. ownership of company

  What is Compound Interest?

• a.    A fixed percentage of Principal amount.

• b. Earn Interest not only on your principal but the interest you have already made

• c.      Variable Interest Rate

    Which of the following Investment is considered to be the riskiest?

• a.      Gold

• b. Stocks

• c.      Mutual Funds

      Derivatives can be classified as

• a.      Future and Options

• b.      Forwards

• c. All of these

An account to hold shares and securities in an electronic format

• a.      Trading Account

• b.      Bank Account

• c. Demat Account

A bull market is when

• a.      The market is down

• b. The Market is up i.e on the rise

• c.      The market is stable

. A Trading Account is

• a.      Used to store securities

• b.      Similar to a bank account

• c. Buy and Sell i.e. trade in securities

Inflation in a country usually leads to

• a.      Appreciation in its own currency

• b. Depreciation of its own currency

• c.      No impact on real exchange rates

Answer explanation

When inflation is higher, this tends to have a depressing affect on the value of a country's currency. This is because increased inflation reduces the currency's buying power, which weakens it against other currencies.

Which of the statements is correct? GDP or Gross Domestic Product is

• a. monetary value of goods and services produced in a country in a given period of time.

• b.      Calculated through production approach only i.e. sum up value added at each stage of production

• Doesn’t reflect the general health of economy

What affects the amount of interest that you would pay on a loan?

• a. Your credit rating

• b.      How much you borrow

• c.      How long you take to repay the loan

• d. All of the above