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WorksheetsBrain-O-Nomics
Total questions: 25
Worksheet time: 13mins
What is the primary role of a financial market?
To set the country’s interest rates
To facilitate transfer of funds from savers to borrowers
To manage the government’s debt
To regulate international trade
A company’s Initial Public Offering (IPO) takes place in which market?
Secondary Market
Derivatives Market
Money Market
Primary Market
The market where existing securities are traded among investors is called the:
Primary Market
Futures Market
Secondary Market
Foreign Exchange Market
What does the term “Bear Market” signify?
Rapidly rising stock prices
Optimistic investors
Prolonged decline in stock prices
Market dominated by short selling
In stock market terms, what is a “Blue Chip”?
High-risk technology stock
Large, well-established financially sound company’s stock
Stock priced below $5
Highly volatile stock
The total value of a company’s outstanding shares of stock is called:
Book Value
Enterprise Value
Market Capitalization
Total Assets
What is the fundamental difference between a stock and a bond?
Stock = Ownership, Bond = Loan
Stock = No risk, Bond = High risk
Stock has maturity, Bond doesn’t
Stock trades on exchange, Bond doesn’t
ETF stands for:
Easy Trading Fund
Equity Transfer Fund
Exchange-Traded Fund
External Treasury Fund
A unique feature of ETFs compared to mutual funds is:
Traded throughout the day on stock exchange
Only for institutional investors
Only domestic investments allowed
Always actively managed
Most ETFs are examples of:
Active investing
Sector rotation
Passive investing
High-frequency trading
The primary goal of diversification in investing is:
Maximize short-term gains
Eliminate all risk
Reduce portfolio risk
Focus on one sector
Diversifying across different asset classes means investing in:
Stocks and Mutual Funds
Technology & Healthcare stocks
Stocks, Bonds, Real Estate
Domestic & International stocks
The expense ratio of an ETF is:
Annual fee charged by manager (% of assets)
Advertising cost
P/E ratio of fund’s holdings
Price of one ETF share
A tariff is:
Subsidy to domestic producers
Limit on imports
Tax on imported goods
Ban on trade
The purpose of a protective tariff is:
Raise govt revenue
Protect domestic industries
Encourage free trade
Simplify customs
A quota is a non-tariff barrier that:
Requires quality checks
Limits import quantity
Tax on exports
Loan to firms
WTO stands for:
World Trade Organization
World Tariff Office
Worldwide Trading Operations
Western Trade Organization
WTO officially started in which year?
1948
1971
1995
2001
WTO principle that members must treat all others equally is called:
Most-Favored-Nation (MFN)
National Treatment
Reciprocity
Least Developed Status
WTO’s primary role is:
Dictate goods countries trade
Settle disputes between governments
Act as global bank
Manage currency exchange
What happens to home loan EMIs when RBI hikes repo rate?
Decrease
Increase
Remain constant
No impact
A decrease in repo rate generally:
Discourages borrowing
Encourages borrowing
No effect
Stops borrowing
One aim of fiscal policy during slowdown is:
Decrease govt spending
Increase taxes
Increase govt spending to boost demand
Reduce money supply
What is the main objective of the FRBM Act?
Increase govt borrowing
Reduce govt borrowing & ensure fiscal discipline
Regulate private investment
Promote foreign trade
Which food items were kept GST-free in 2025 reforms?
Luxury cars
Paneer & Indian breads
Cement
Tobacco
