WorksheetsAlternative Finance - Test - Version A
Total questions: 39
Worksheet time: 59mins
Name
Class
Date
1.
What is a commodity?
a)
A finished product used in commerce
b)
A raw material used to manufacture goods
c)
A type of currency used in trading
d)
A type of investment
2.
What is the purpose of buying futures contracts for farmers and manufacturers?
a)
To protect against price fluctuations
b)
To increase profits
c)
To control the commodity market
d)
To secure government subsidies
3.
What do financial traders aim to profit off in commodity markets?
a)
Price fluctuations
b)
Government regulations
c)
Consumer demand
d)
Market stability
4.
What natural factors can impact commodity markets?
a)
Weather conditions
b)
Government regulations
c)
Consumer preferences
d)
All of the above
5.
Which of the following is not an energy commodity?
a)
Crude oil
b)
Natural gas
c)
Gold
d)
Brent crude
6.
What is a futures contract in commodity trading?
a)
An agreement to sell a commodity at current market prices.
b)
A contract to buy or sell a commodity at a future price.
c)
A plan to buy commodities only in the future.
d)
A deal to trade only in soft commodities like wheat and soybeans.
7.
Why is the spot price of a commodity important?
a)
It tells how much the commodity costs right now.
b)
It shows the price of the commodity last year.
c)
It is the price used for trading only gold and silver.
d)
It predicts the future price of the commodity.
8.
What factor can drive the price of oil?
a)
Global demand
b)
Political instability
c)
OPEC decisions
d)
All of the above
9.
What can affect the price of coffee?
a)
Weather conditions
b)
Political changes
c)
Market speculation
d)
All of the above
10.
What organization controls a significant portion of the world's oil exports?
a)
OPEC
b)
UNESCO
c)
IMF
d)
World Bank
11.
What can cause an increase in the price of coffee?
a)
Weather conditions
b)
Political instability
c)
Disease affecting crops
d)
All of the above
12.
What makes trading in commodities risky?
a)
Prices are stable and don’t change often.
b)
No one can predict future prices with certainty.
c)
Commodities are not useful in everyday life.
d)
Only speculators are involved in commodity trading.
13.
What are hard commodities?
a)
Agricultural goods
b)
Energy and metals products
c)
Financial assets
d)
Consumer goods
14.
What is a mortgage?
a)
A loan used to purchase a car
b)
A loan used to purchase a house
c)
A loan used to pay off credit card debt
d)
A loan used to start a business
15.
When should you consider getting a mortgage?
a)
When you have enough money to pay for the house upfront
b)
When you want to avoid borrowing money
c)
When you are unable to pay the full price of a house upfront
d)
When you want to invest in the stock market
16.
What is the typical down payment for a mortgage?
a)
5% of the asking price
b)
10% of the asking price
c)
20% of the asking price
d)
30% of the asking price
17.
How does a good credit score affect your mortgage?
a)
It increases the interest rate
b)
It decreases the interest rate
c)
It has no impact on the mortgage
d)
It determines the down payment amount
18.
What type of mortgage is suitable for higher debt-to-income ratios?
a)
Conventional mortgage
b)
FHA loan
c)
Jumbo loan
d)
VA loan
19.
What is the range of loan terms for mortgages?
a)
5 to 15 years
b)
10 to 30 years
c)
20 to 40 years
d)
30 to 50 years
20.
What should you consider when choosing a mortgage lender?
a)
Their location
b)
Their online support
c)
Their interest rates
d)
All of the above
21.
Why is getting pre-approved before house hunting important?
a)
It guarantees you will get the loan
b)
It helps you determine your budget
c)
It saves time during the application process
d)
It allows you to skip the credit check
22.
What does the mortgage application process involve?
a)
Submitting financial information
b)
Choosing a real estate agent
c)
Paying the down payment
d)
Signing the loan agreement
e)
All of the above
23.
What are the components of a monthly mortgage payment?
a)
Principal, interest, taxes, insurance
b)
Principal, interest, fees, insurance
c)
Interest, taxes, insurance, PMI
d)
Principal, fees, taxes, insurance
24.
What is Bitcoin?
a)
A digital currency
b)
A physical coin
c)
A payment system
d)
All of the above
25.
How is cryptocurrency different from traditional money?
a)
It is physical
b)
It is government-issued
c)
It is bank-issued
d)
It is decentralized
26.
Who invented Bitcoin?
a)
Satoshi Nakamoto
b)
Bill Gates
c)
Mark Zuckerberg
d)
Jeff Bezos
27.
What is the purpose of a blockchain?
a)
To record bitcoin transactions (confirm transactions without a need for a central clearing authority)
b)
To solve math puzzles
c)
To mine for gold
d)
To manage government-issued money
28.
Why are Bitcoin transactions anonymous?
a)
To protect user privacy
b)
To prevent fraud
c)
To evade taxes
d)
To hide illegal activities
29.
What is the main advantage of Bitcoin over traditional currencies?
a)
It cannot be created out of thin air
b)
It is easily traceable
c)
It is controlled by a central authority
d)
It is widely accepted
30.
Why do some people consider Bitcoin a disruptive technology?
a)
It challenges the control of central banks
b)
It allows for anonymous transactions
c)
It eliminates the need for banks
d)
All of the above
31.
What is the lightning network?
a)
A technology to reduce the cost of Bitcoin transactions
b)
A new digital currency
c)
A centralized database for Bitcoin
d)
A platform for decentralized lending
32.
Why do some people believe that governments will create their own digital currencies?
a)
To maintain control over the monetary system
b)
To increase efficiency in transactions
c)
To eliminate the need for physical cash
d)
All of the above
33.
What is the main concern regarding centralized digital currencies?
a)
Loss of privacy and control
b)
Increased efficiency in transactions
c)
Reduced risk of fraud
d)
Greater accessibility for all
34.
What is the risk of depositing money into a cryptocurrency account using a credit card?
a)
Higher interest rates
b)
Additional cash advance fees
c)
Potential loss of 10% due to fees
d)
All of the above
35.
Which of the following is a secure storage method for cryptocurrencies?
a)
Leaving the crypto on the exchange
b)
Using a hot wallet
c)
Using a cold wallet
d)
All of the above
36.
What is the main advantage of investing in cryptocurrency ETFs?
a)
Immediate diversification
b)
Lower risk than individual investments
c)
Exposure to multiple cryptocurrencies
d)
All of the above
37.
Why do companies pay dividends?
a)
To distribute profits to shareholders.
b)
To increase the company's stock price.
c)
To reduce the company's tax liability.
d)
To attract new investors.
38.
What is the difference between a bear and bull market? Also explain what could cause the stock market to go up or to go down?
4 lines
39.
What is OPEC and what does it do? Be specific.
4 lines
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