Common Business Terminologies Quiz 9 – Punjab Meritorious School Preparation Portal

Welcome to your Common Business Terminologies Quiz 9 CBT TEST

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Name

School Name with City

Phone Number

______ is a strategy that is used to minimize the risk of a particular investment and maximize the returns of an investment.

cap

Encryption

Hedge

Term insurance

_______is a technology where the banking organizations resort to the use of electronics, computers and other networks to execute transactions and transfer funds.

E-cash

Digi-cash

Hedge

Cap

Which of the following is incorrect?

Market is a bullish, when stock-market players are optimist and bearish when they are pessimist.

Blue chips are shares of well-established sound finance companies having impressive record.

Bonus is one-month extra salary which is paid to employee irrespective of profit or loss.

Debentures is a debt instrument that carries assured return called interest.

_________is a very wide term that is used in context with financial agreements and contracts.

Account balance

Acceptance

Annuity

Arbitrage

Which of the following statement is incorrect?

Arbitrage is simultaneous purchase and sale of a commodity.

Current assets are those which can be turned into cash within a year.

Intangible assets are those which do not have physical form. They are in the form of rights

Break-even point is also called an optimum point of a firm.

________is the simultaneous purchase and sale of two identical commodities or instruments. This simultaneous sale and purchase is done in order to take advantage of the price variations in two different markets.

Cap

Term insurance

Arbitrage

Hedge

What is a cap?

A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of an adjustable rate mortgage.

A cap is the total amount of cash that is present in the bank account and can also be withdrawn immediately.

A cap is the certificate of savings deposit that promises the depositor the sum back along with appropriate interest.

A cap is a loan where the time and cash flow between a short-term loan and a long-term loan is filled up

A guarantee given by the lender that there will be no change in the quoted mortgage rates for a specified period of time, which is called the

Lock-in period

Maturity

Holding Period

Due date

What is a financial instrument?

anything that ranges from cash, deed, negotiable instrument, or for that matter any written and authenticated evidence that shows the existence of a transaction or agreement.

is basically any security that is held with the government and has the highest possible rate of interest.

is a contract where the borrower, who is also the purchaser, pays a series of instalments that includes the interest of the principal amount

none of the above

A negotiable instrument that instructs the bank to pay a particular amount of money from the writer’s bank, to the receiver is called

A cheque

A draft

An overdraft

RTGS

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