Pregrad ( Month 1 )

Neha is looking to invest her savings, while Ishaan is in need of a loan to start his new business. The primary role of financial markets is:

• Tax collection

• Facilitating funds between savers and borrowers

• Government policy making

• Controlling inflation

Asher is interested in investing his money and wants to understand the different types of markets. He learns that equity markets deal with:

• Bonds

• Shares of ownership in companies

• Currency exchange

• Futures contracts

In a bustling city, Aashi is trying to understand the different roles in the financial market. She learns about various participants involved in trading and investing. However, she is confused about one group that does not participate in the financial market. Which is NOT a financial market participant?

• Issuers

• Intermediaries

• Shareholders

• Tax authorities

Aisha is considering investing her savings in different financial instruments. She comes across various options and wants to understand what a bond is. She asks her financial advisor, 'A bond is best described as:'

• Company ownership

• Loan instrument

• Derivative contract

• Foreign currency instrument

Ria is exploring different types of financial markets and comes across derivative markets. She wonders what these markets actually trade.

• Physical goods

• Instruments based on underlying assets

• Company dividends

• Tax bonds

Saisha is reviewing her company's financial statements at the end of the fiscal year. She wants to understand the overall financial position of her business. What does the balance sheet represent?

• Cash inflows/outflows

• Revenues and expenses

• Assets, liabilities, equity at a point in time

• Profit margins

Anika runs a small bakery and needs to keep track of her business's financial performance. She wants to understand how much money she made and spent over the past year. Which financial document should she refer to?

• Shareholder equity

• Cash reserves

• Revenues and expenses over time

• Liabilities only

Anika is preparing her company's financial reports and needs to include the cash flow statement. She wonders what components are necessary to accurately represent the cash flow. What should she include?

• Operating, investing, and financing activities

• Dividends only

• Asset valuations

• Taxes

Tisha runs a small bakery and is evaluating her financial health. She wants to understand how well her bakery can handle its short-term financial obligations. To do this, she looks into liquidity ratios. What do liquidity ratios indicate for Tisha's bakery?

• Long-term debt capacity

• Profitability

• Ability to meet short-term obligations

• Market efficiency

Tara is evaluating the financial health of her company and wants to understand its long-term viability. She decides to look into various financial metrics, particularly focusing on solvency ratios. What do solvency ratios measure?

• Long-term financial stability

• Short-term liquidity

• Marketing efficiency

• Employee performance