WorksheetsCSEC POB SECTION 8 BUSINESS FINANCE
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
Which of the following is NOT a financial institution?
a)
Supermarket
b)
Commercial bank
c)
Stock market
d)
Insurance company
2.
A development bank primarily provides:
a)
Long-term funding for business and economic projects
b)
Short-term loans to individuals
c)
Providing insurance policies
d)
Mortgage financing
3.
Which financial institution is a non-profit cooperative that provides lower-cost financial services to its members?
a)
Credit union
b)
Commercial bank
c)
Mortgage company
d)
Development bank
4.
The main function of a mortgage company is to:
a)
Provide loans for purchasing property
b)
Accept deposits and issue checks
c)
Offer insurance policies
d)
Regulate financial institutions
5.
A microfinance agency primarily provides financial services to:
a)
Low-income individuals and small businesses
b)
Large corporations
c)
Government entities
d)
Stock market investors
6.
The central bank is responsible for all the following EXCEPT:
a)
Offering personal loans
b)
Issuing banknotes
c)
Setting interest rates
d)
Acting as a lender of last resort
7.
The Jamaica Deposit Insurance Corporation (JDIC) was created to:
a)
Protect depositors and maintain financial stability
b)
Issue government bonds
c)
Provide insurance for businesses
d)
Regulate commercial banks
8.
Which financial regulatory body is responsible for enforcing financial regulations from the government?
a)
Central bank
b)
Credit unions
c)
Development banks
d)
Commercial banks
9.
The Financial Services Commission (FSC) is responsible for regulating:
a)
Stock markets and credit unions
b)
Only commercial banks
c)
Supermarkets and retail businesses
d)
Foreign exchange transactions
10.
Which of the following is NOT a function of financial regulatory bodies?
a)
Providing personal savings accounts
b)
Supervising financial institutions
c)
Advising the government on fiscal matters
d)
Enforcing financial regulations
11.
Which of the following is NOT a method of managing personal income?
a)
Gambling for extra income
b)
Budgeting
c)
Allocating money for savings
d)
Engaging in financial planning
12.
A budget where expected revenue is less than projected expenditure is called a:
a)
Deficit budget
b)
Surplus budget
c)
Balanced budget
d)
Investment budget
13.
The main purpose of a budget is to:
a)
Track income and spending
b)
Increase expenses
c)
Avoid paying taxes
d)
Reduce business profits
14.
Which of the following is an example of a fixed expense in a personal budget?
a)
Rent
b)
Food
c)
Entertainment
d)
Gasoline
15.
A financial statement that shows an individual's cash inflows and outflows over a period of time is called:
a)
Cash flow statement
b)
Balance sheet
c)
Income statement
d)
Profit and loss statement
16.
Which of the following is NOT considered a form of savings?
a)
Buying company shares
b)
A fixed-term deposit in a bank
c)
Placing money in a cash box at home
d)
A sou-sou contribution
17.
The main objective of investment is to:
a)
Generate long-term financial growth
b)
Minimize financial risk
c)
Keeping money safe in a savings account
d)
Reduce disposable income
18.
Investing in stocks and shares is generally:
a)
A form of long-term financial growth
b)
Only for government institutions
c)
Less profitable than bank savings
d)
Risk-free
19.
Which of the following is a characteristic of investment rather than savings?
a)
Higher potential returns
b)
Short-term security
c)
Low risk
d)
Fixed income
20.
Dividends are:
a)
The profits paid to shareholders
b)
The interest earned on a savings account
c)
The amount borrowed from a bank
d)
The fees charged by a stockbroker
21.
Which of the following is NOT a source of long-term finance?
a)
Overdraft
b)
Bonds
c)
Share capital
d)
Debentures
22.
A short-term credit facility that allows a business to withdraw more than its account balance is called:
a)
Overdraft
b)
Leasing
c)
Factoring
d)
Trade credit
23.
A financial arrangement where a company sells its unpaid invoices to another business for immediate cash is called:
a)
Factoring
b)
Leasing
c)
Trade credit
d)
Overdraft
24.
A source of finance where an individual or business pays in installments for an asset while using it is called:
a)
Hire purchase
b)
Debenture
c)
Trade credit
d)
Leasing
25.
Crowdfunding refers to:
a)
Raising small amounts of capital from many people
b)
Borrowing from a single investor
c)
Taking out a commercial bank loan
d)
Using government grants for funding
100 %
