What is Finance? 1.1

What is the primary purpose of finance?

• To create art

• To manage money

• To study history

• To write literature

Which of the following is a basic concept in finance?

• Photosynthesis

• Interest rates

• Plate tectonics

• Literary analysis

What is a common financial instrument used for borrowing money?

• A novel

• A bond

• A painting

• A song

Which term refers to the profit made from selling an asset for more than its purchase price?

• Loss

• Capital gain

• Depreciation

• Amortization

What is the term for the cost of borrowing money, usually expressed as a percentage?

• Dividend

• Interest

• Equity

• Revenue

Which of the following is a type of financial market?

• Supermarket

• Stock market

• Flea market

• Farmers market

What is the term for the distribution of a portion of a company's earnings to its shareholders?

• Dividend

• Salary

• Rent

• Commission

Which of the following is a basic financial statement?

• Balance sheet

• Recipe

• Blueprint

• Manuscript

What is the term for the total amount of money a business earns from its operations?

• Expense

• Revenue

• Liability

• Asset

Which of the following is a key component of personal finance?

• Budgeting

• Painting

• Gardening

• Cooking