Business & Finance Diagnostic Test

Question 1

What does GDP stand for in economics?

Accepted Answer

Gross Domestic Product

Answer

General Direct Profit

Answer

Global Deposit Price

Answer

Government Debt Percentage

Question 2

Which institution serves as the central bank and monetary authority of India?

Accepted Answer

Reserve Bank of India (RBI)

Answer

State Bank of India (SBI)

Answer

SEBI

Answer

NABARD

Question 3

What economic term describes a general rise in the prices of goods and services over time?

Accepted Answer

Inflation

Answer

Deflation

Answer

Stagflation

Answer

Depreciation

Question 4

In accounting, what is the fundamental balance sheet equation?

Accepted Answer

$	ext{Assets} = 	ext{Liabilities} + 	ext{Equity}$

Answer

$	ext{Assets} = 	ext{Liabilities} - 	ext{Equity}$

Answer

$	ext{Revenue} = 	ext{Expenses} + 	ext{Profit}$

Answer

$	ext{Equity} = 	ext{Assets} + 	ext{Liabilities}$

Question 5

What is the term for a payment made by a corporation to its shareholders from its profits?

Accepted Answer

Dividend

Answer

Capital Gain

Answer

Bond Yield

Answer

Equity Dilution

Question 6

What does IPO stand for in financial markets?

Accepted Answer

Initial Public Offering

Answer

Internal Profit Optimization

Answer

International Portfolio Order

Answer

Investor Preferred Option

Question 7

According to the Law of Demand, what happens to the quantity demanded when price increases?

Accepted Answer

Quantity demanded decreases

Answer

Quantity demanded increases

Answer

Quantity demanded remains unchanged

Answer

Supply drops to zero

Question 8

Which regulatory body regulates securities and stock exchanges in India?

Accepted Answer

SEBI

Answer

IRDAI

Answer

PFRDA

Answer

CCI

Question 9

What does the P/E ratio measure in stock analysis?

Accepted Answer

Price to Earnings ratio (Share Price / Earnings per share)

Answer

Profit to Expense ratio

Answer

Public Equity ratio

Answer

Portfolio Efficiency ratio

Question 10

What is 'compound interest' fundamentally defined as?

Accepted Answer

Interest calculated on both initial principal and accumulated interest from prior periods

Answer

Interest calculated solely on initial principal

Answer

A late fee penalty on loans

Answer

Fixed annual government interest