#1
1. What does ROI stand for in finance?
Return on Investment
ExplanationMeasurement of profitability relative to the amount invested
#2
10. What is the purpose of a 401(k) retirement savings plan?
To facilitate tax-free savings for retirement
ExplanationEmployer-sponsored retirement plan
#3
12. What is the purpose of a SWOT analysis in business?
To evaluate a company's internal strengths and weaknesses
ExplanationAssessment of internal factors
#4
20. What is the purpose of a SWIFT code in international banking?
To identify a specific bank in an international transaction
ExplanationBank identification code for international transfers
#5
2. What is the term for the total market value of all goods and services produced in a country within a specific time period?
Gross Domestic Product (GDP)
ExplanationIndicator of economic performance
#6
3. What is the function of a balance sheet in accounting?
To show a company's financial position at a specific point in time
ExplanationSnapshot of assets, liabilities, and equity
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6. What is the primary purpose of a profit and loss statement (income statement) in accounting?
To report the company's revenues and expenses over a specific period
ExplanationOverview of financial performance
#8
7. What is the difference between a secured loan and an unsecured loan?
The presence of collateral
ExplanationSecurity against default
#9
11. What does the term 'Amortization' mean in finance?
The process of paying off debt over time through regular payments
ExplanationGradual reduction of debt
#10
4. What does the term 'Liquidity' refer to in finance?
The ease of converting assets into cash
ExplanationMeasure of asset's convertibility to cash
#11
5. In the context of investment, what does Diversification mean?
Spreading investments across different assets to reduce risk
ExplanationRisk management strategy
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8. What does the term 'Blue Chip Stocks' refer to in the context of investing?
Stocks of well-established, financially stable companies
ExplanationInvestment in established companies with stable earnings
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9. What is the role of the Federal Reserve in the United States?
Managing the money supply and interest rates
ExplanationCentral banking functions
#14
13. What is the significance of the term 'IPO' in the financial world?
Initial Public Offering
ExplanationFirst sale of stock by a private company to the public