#1
Which of the following is an example of a financial asset?
Inventory
Accounts Payable
Stock
Land
#2
What does the term 'liability' refer to in finance?
Money owed to a company
Assets owned by a company
Debts or obligations owed by a company
Value of company's investments
#3
What is the primary function of a stock exchange?
To provide loans to individuals
To facilitate the buying and selling of securities
To regulate interest rates
To issue government bonds
#4
Which financial statement shows a company's assets, liabilities, and shareholders' equity at a specific point in time?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Retained Earnings
#5
Which of the following is an example of a derivative?
Stock
Corporate Bond
Futures Contract
Real Estate
#6
Which financial statement reports a company's financial performance over a specific period?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#7
What is the primary purpose of derivatives in finance?
To provide insurance against losses
To transfer risk from one party to another
To generate fixed income
To fund long-term projects
#8
What is the role of a credit rating agency in the financial market?
To issue loans to individuals
To provide investment advice to companies
To assign credit ratings to financial products and issuers
To regulate stock market activities
#9
Which financial ratio measures a company's ability to pay its short-term debts?
Debt-to-Equity Ratio
Current Ratio
Return on Investment
Price-to-Earnings Ratio
#10
What is the primary function of a central bank in a country's economy?
To issue currency
To regulate the stock market
To manage the country's monetary policy
To provide loans to commercial banks
#11
In finance, what does the term 'yield' refer to?
The interest rate on a bond
The amount of money invested
The price of a stock
The total assets of a company
#12
Which of the following is NOT a type of financial asset?
Stocks
Bonds
Real estate
Options
#13
Which of the following is NOT a characteristic of a liquid asset?
High marketability
Low risk
Quick convertibility into cash
Stable value over time