#1
Which of the following is an example of an attribute in finance?
Interest rate
ExplanationAttribute in finance refers to specific characteristics, and interest rate is a key financial attribute representing the cost of borrowing or the return on investment.
#2
Diversity in finance careers refers to:
Having employees from different cultural backgrounds
ExplanationDiversity in finance involves having a workforce with varied cultural backgrounds, promoting inclusion and a range of perspectives.
#3
What is the primary goal of financial inclusion?
To provide financial services to a wider population
ExplanationFinancial inclusion aims to make financial services accessible to a broader population, promoting economic stability and growth.
#4
What is the role of a credit rating agency in finance?
To assess the creditworthiness of entities
ExplanationCredit rating agencies evaluate the creditworthiness of entities, providing insights for investors and lenders.
#5
What is the primary objective of a financial audit?
To assess the accuracy and reliability of financial information
ExplanationFinancial audits aim to verify and ensure the accuracy and reliability of a company's financial information.
#6
Which of the following is NOT a benefit of diversity in finance?
Reduced creativity
ExplanationReduced creativity is not a benefit; diversity in finance typically enhances creativity through different viewpoints.
#7
What term is commonly used to describe the representation of women in senior finance roles?
Glass ceiling
ExplanationThe 'glass ceiling' describes the barriers that prevent women from advancing to top positions in finance and other professions.
#8
What does the term 'asset allocation' refer to in finance?
The process of dividing investments among different asset classes
ExplanationAsset allocation involves distributing investments across various asset classes to optimize risk and return.
#9
Which of the following is a key factor contributing to workplace diversity in finance?
Valuing different perspectives and backgrounds
ExplanationValuing different perspectives and backgrounds is essential for fostering workplace diversity in finance.
#10
Which financial sector is particularly impacted by environmental concerns?
Insurance
ExplanationThe insurance sector is significantly impacted by environmental concerns, such as climate change and natural disasters, affecting risk and underwriting.
#11
In the context of finance, what does the acronym ESG stand for?
Environmental, Social, and Governance
ExplanationESG in finance stands for Environmental, Social, and Governance, representing key criteria for sustainable and responsible investing.