ENGLISH FOR FINANCE AND BANKING
1. A __________ is a legal agreement in which a lender agrees to loan a certain amount of
money to a borrower, with the borrower agreeing to pay back the loan with interest.
a) Bond b) Stock c) Loan d) Equity
Answer: c) Loan
2. A __________ is a financial instrument that represents a claim on part of the company's
assets and earnings.
a) Bond b) Stock c) Loan d) Equity
Answer: b) Stock
3. A __________ is a financial ratio that measures a company's ability to pay its short-term
debts.
a) Current ratio b) Debt-to-equity ratio c) Return on equity d) Gross margin
Answer: a) Current ratio
4. A __________ is a financial statement that provides a summary of a company's financial
position at a specific point in time.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: a) Balance sheet
5. A __________ is a financial market in which financial instruments with high liquidity
and short maturities are traded.
a) Primary market b) Secondary market c) Money market d) Capital market
Answer: c) Money market
6. A __________ is a financial institution that helps companies and governments raise
money by issuing and selling securities.
a) Bank b) Stockbroker c) Insurance company d) Investment bank
Answer: d) Investment bank
7. A __________ is an account that allows you to save money and earn interest on the
deposited funds.
a) Checking account b) Savings account c) Credit card account d) Money market account
Answer: b) Savings account
8. A __________ is an agreement between a lender and a borrower, in which the lender
agrees to loan a certain amount of money at a fixed interest rate for a specific period of
time.
a) Revolving credit b) Installment loan c) Term loan d) Line of credit
Answer: c) Term loan
9. A __________ is a financial market in which currencies are traded.
a) Stock market b) Commodity market c) Foreign exchange market d) Real estate market
Answer: c) Foreign exchange market
10. A __________ is a financial measure of a company's profitability, calculated by
dividing the company's net income by its total revenue.
a) Return on assets b) Return on equity c) Net profit margin d) Gross margin
Answer: c) Net profit margin
11. A __________ is a financial instrument that represents an ownership stake in a
company.
a) Bond b) Stock c) Loan d) Equity
Answer: b) Stock
12. A __________ is a financial measure of a company's liquidity, calculated by dividing
current assets by current liabilities.
a) Current ratio b) Debt-to-equity ratio c) Return on equity d) Gross margin
Answer: a) Current ratio
13. A __________ is a financial instrument that allows investors to borrow money to buy
securities, usually with the added benefit of gaining leverage.
a) Bond b) Stock c) Loan d) Margin account
Answer: d) Margin account
14. A __________ is a financial statement that shows a company's revenues and expenses
over a period of time.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: b) Income statement
15. A __________ is a financial market in which new securities are issued to the public.
a) Primary market b) Secondary market c) Money market d) Capital market
Answer: a) Primary market
16. A __________ is a financial institution that manages investments on behalf of clients.
a) Bank b) Stockbroker c) Insurance company d) Investment management firm
Answer: d) Investment management firm
17. A __________ is a financial instrument that represents a claim on future cash flows
from a project or an asset.
a) Bond b) Stock c) Loan d) Revenue bond
Answer: a) Bond
18. A __________ is an agreement between a lender and a borrower, in which the lender
agrees to loan a certain amount of money at a variable interest rate, usually based on a
benchmark interest rate.
a) Revolving credit b) Installment loan c) Floating rate loan d) Line of credit
Answer: c) Floating rate loan
19. A __________ is a financial market in which commodities are traded.
a) Stock market b) Commodity market c) Foreign exchange market d) Real estate market
Answer: b) Commodity market
20. A __________ is a financial measure of a company's profitability, calculated by
dividing the company's net income by its shareholders' equity.
a) Return on assets b) Return on equity c) Net profit margin d) Gross margin
Answer: b) Return on equity
21. A __________ is a financial agreement in which a lender agrees to loan a certain
amount of money to a borrower, with the expectation of repayment with interest.
a) Bond b) Stock c) Loan d) Equity
Answer: c) Loan
22. A __________ is a financial market in which existing securities are bought and sold.
a) Primary market b) Secondary market c) Money market d) Capital market
Answer: b) Secondary market
23. A __________ is a financial ratio that compares a company's total debt to its total
assets.
a) Debt-to-equity ratio b) Current ratio c) Return on assets d) Debt-to-assets ratio
Answer: d) Debt-to-assets ratio
24. A __________ is a financial statement that shows a company's financial position at a
specific point in time.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: a) Balance sheet
25. A __________ is a financial instrument that represents an ownership interest in a
company.
a) Bond b) Stock c) Loan d) Equity
Answer: b) Stock
26. A __________ is a financial institution that provides banking and financial services to
customers.
a) Stockbroker b) Investment management firm c) Bank d) Insurance company
Answer: c) Bank
27. A __________ is a financial market in which currencies are bought and sold.
a) Stock market b) Commodity market c) Foreign exchange market d) Real estate market
Answer: c) Foreign exchange market
28. A __________ is a financial agreement in which a borrower agrees to pay back a loan
in regular payments over a set period of time.
a) Revolving credit b) Installment loan c) Floating rate loan d) Line of credit
Answer: b) Installment loan
29. A __________ is a financial measure of a company's profitability, calculated by
dividing the company's net income by its total revenues.
a) Return on assets b) Return on equity c) Net profit margin d) Gross margin
Answer: c) Net profit margin
30. A __________ is a financial instrument that represents a promise to pay back a certain
amount of money to the holder on a specific date in the future.
a) Bond b) Stock c) Loan d) Equity
Answer: a) Bond
31. A __________ is a financial instrument that represents a promise by the issuer to pay
a specific amount of money to the holder on a specified date, or on demand.
a) Bond b) Stock c) Loan d) Equity
Answer: a) Bond
32. A __________ is a financial market where currencies are bought and sold.
a) Commodity market b) Foreign exchange market c) Stock market d) Money market
Answer: b) Foreign exchange market
33. A __________ is a financial statement that shows a company's revenues, expenses, and
profits over a certain period of time.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: b) Income statement
34. A __________ is a financial market where new securities are issued and sold to the
public for the first time.
a) Primary market b) Secondary market c) Money market d) Capital market
Answer: a) Primary market
35. A __________ is a financial institution that offers a wide range of financial products
and services, including savings and checking accounts, loans, and investments.
a) Stockbroker b) Investment management firm c) Bank d) Insurance company
Answer: c) Bank
36. A __________ is a financial measure of a company's ability to meet its short-term
obligations, calculated by dividing its current assets by its current liabilities.
a) Debt-to-equity ratio b) Current ratio c) Return on assets d) Debt-to-assets ratio
Answer: b) Current ratio
37. A __________ is a financial agreement in which an investor agrees to lend money to a
borrower for a specified period of time, with the expectation of receiving interest payments
and the return of the principal.
a) Bond b) Stock c) Loan d) Deposits
Answer: c) Loan
38. A __________ is a financial market where commodities such as gold, oil, and
agricultural products are bought and sold.
a) Stock market b) Commodity market c) Foreign exchange market d) Real estate market
Answer: b) Commodity market
39. A __________ is a financial ratio that measures a company's profitability, calculated
by dividing its net income by its shareholders' equity.
a) Return on assets b) Return on equity c) Net profit margin d) Gross margin
Answer: b) Return on equity
40. A __________ is a financial institution that specializes in buying and selling securities
such as stocks, bonds, and mutual funds.
a) Stockbroker b) Investment management firm c) Bank d) Insurance company
Answer: a) Stockbroker
41. A __________ is a financial contract between an insurance company and an individual
or organization, where the insurer agrees to pay a specified amount of money in the event
of a specified loss.
a) Bond b) Stock c) Loan d) Insurance policy
Answer: d) Insurance policy
42. A __________ is a financial tool used to manage risk by spreading investments across
different types of assets or securities.
a) Hedge fund b) Diversification c) Mutual fund d) Derivative
Answer: b) Diversification
43. A __________ is a financial statement that shows a company's financial position at a
specific point in time, including its assets, liabilities, and shareholders' equity.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: a) Balance sheet
44. A __________ is a financial market where financial instruments such as currencies,
commodities, and derivatives are bought and sold.
a) Primary market b) Secondary market c) Money market d) Foreign exchange market
Answer: d) Foreign exchange market
45. A __________ is a financial institution that provides short-term loans to businesses and
individuals, typically secured by collateral such as real estate or inventory.
a) Stockbroker b) Commercial bank c) Savings and loan association d) Hedge fund
Answer: c) Savings and loan association
46. A __________ is a financial ratio that measures a company's ability to generate profits
from its operations, calculated by dividing its net income by its sales revenue.
a) Debt-to-equity ratio b) Current ratio c) Return on assets d) Net profit margin
Answer: d) Net profit margin
47. A __________ is a financial market where stocks, bonds, and other securities are
bought and sold.
a) Stock market b) Commodity market c) Foreign exchange market d) Real estate market
Answer: a) Stock market
48. A __________ is a financial ratio that measures a company's ability to meet its longterm debt obligations, calculated by dividing its long-term debt by its shareholders' equity.
a) Return on assets b) Return on equity c) Debt-to-equity ratio d) Gross margin
Answer: c) Debt-to-equity ratio
49. A __________ is a financial institution that specializes in managing investment
portfolios for individuals and organizations.
a) Stockbroker b) Investment management firm c) Bank d) Insurance company
Answer: b) Investment management firm
50. A __________ is a financial instrument that represents a claim on a specific underlying
asset or pool of assets.
a) Bond b) Stock c) Mutual fund d) Derivative
Answer: a) Bond
51. A __________ is a financial market where long-term debt securities such as bonds are
bought and sold.
a) Stock market b) Foreign exchange market c) Money market d) Bond market
Answer: d) Bond market
52. A __________ is a financial institution that acts as a intermediary between borrowers
and lenders, connecting borrowers who need loans with investors who have capital to lend.
a) Commercial bank b) Credit union c) Investment bank d) Peer-to-peer lending platform
Answer: c) Investment bank
53. A __________ is a financial contract in which the buyer agrees to pay a fixed price for
a specified quantity of an underlying asset at a specified future date.
a) Forward contract b) Futures contract c) Option contract d) Swap contract
Answer: b) Futures contract
54. A __________ is a financial tool that allows an investor to bet on the price movements
of an underlying asset without actually owning the asset.
a) ETF b) Mutual fund c) Derivative d) Bond
Answer: c) Derivative
55. A __________ is a financial statement that shows a company's revenues, expenses, and
profits over a specific period of time, such as a quarter or a year.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: b) Income statement
56. A __________ is a financial ratio that measures a company's ability to generate profits
from its shareholders' equity, calculated by dividing its net income by its shareholders'
equity.
a) Return on assets b) Return on equity c) Debt-to-equity ratio d) Gross margin
Answer: b) Return on equity
57. A __________ is a financial institution that offers various financial products and
services to consumers, such as checking and savings accounts, loans, and credit cards.
a) Stockbroker b) Investment bank c) Commercial bank d) Insurance company
Answer: c) Commercial bank
58. A __________ is a financial market where financial instruments such as currencies,
commodities, and derivatives are bought and sold for immediate delivery.
a) Primary market b) Secondary market c) Money market d) Foreign exchange market
Answer: c) Money market
59. A __________ is a document that shows the details of a loan, including the interest
rate, repayment schedule, and the borrower's creditworthiness.
a) Balance sheet b) Credit report c) Loan agreement d) Income statement
Answer: c) Loan agreement
60. A __________ is a financial market where short-term debt securities such as
government bonds and commercial paper are bought and sold.
a) Stock market b) Foreign exchange market c) Money market d) Bond market
Answer: c) Money market
61. A __________ is a financial instrument that allows an investor to buy shares of stock
in a company at a reduced price, usually in exchange for a commitment to hold the shares
for a certain period of time.
a) Stock option b) Stock warrant c) Stock right d) Stock split
Answer: b) Stock warrant
62. A __________ is a financial market where short-term debt instruments, such as
Treasury bills, are bought and sold.
a) Stock market b) Foreign exchange market c) Money market d) Derivatives market
Answer: c) Money market
63. A __________ is a financial contract in which two parties agree to exchange cash flows
at specified intervals, usually based on a specific underlying asset or index.
a) Forward contract b) Futures contract c) Swap contract d) Option contract
Answer: c) Swap contract
64. A __________ is a financial tool that allows an investor to gain exposure to a
diversified portfolio of assets by buying shares in a single fund that holds a variety of
different securities.
a) ETF b) Mutual fund c) Derivative d) Bond
Answer: b) Mutual fund
65. A __________ is a financial ratio that measures a company's ability to pay off its shortterm liabilities with its short-term assets, calculated by dividing its current assets by its
current liabilities.
a) Return on assets b) Return on equity c) Current ratio d) Gross margin
Answer: c) Current ratio
66. A __________ is a financial institution that acts as an intermediary between buyers and
sellers of stocks, bonds, and other securities.
a) Stockbroker b) Investment bank c) Commercial bank d) Insurance company
Answer: a) Stockbroker
67. A __________ is a financial market where securities such as stocks and bonds are
bought and sold after they have been initially offered to the public through an initial public
offering (IPO).
a) Primary market b) Secondary market c) Money market d) Foreign exchange market
Answer: b) Secondary market
68. A __________ is a financial tool that allows an investor to limit the amount of downside
risk they take on by purchasing an option to sell an asset at a certain price.
a) Put option b) Call option c) Forward contract d) Swap contract
Answer: a) Put option
69. A __________ is a financial ratio that measures a company's ability to pay off its longterm debt obligations, calculated by dividing its earnings before interest and taxes by its
total debt.
a) Times interest earned ratio b) Debt-to-equity ratio c) Current ratio d) Gross margin
Answer: a) Times interest earned ratio
70. A __________ is a financial market where currencies from different countries are
bought and sold.
a) Foreign exchange market b) Money market c) Stock market d) Bond market
Answer: a) Foreign exchange market
71. A __________ is a financial contract that gives the holder the right, but not the
obligation, to buy or sell an underlying asset at a certain price within a certain period of
time.
a) Forward contract b) Futures contract c) Option contract d) Swap contract
Answer: c) Option contract
72. A __________ is a financial statement that shows a company's cash inflows and
outflows over a specific period of time, such as a quarter or a year.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: c) Cash flow statement
73. A __________ is a financial institution that accepts deposits and makes loans and
provides other financial services.
a) Stockbroker b) Investment bank c) Commercial bank d) Insurance company
Answer: c) Commercial bank
74. A __________ is a financial ratio that measures a company's profitability, calculated
by dividing its net income by its total sales revenue.
a) Gross margin b) Return on equity c) Return on assets d) Net profit margin
Answer: d) Net profit margin
75. A __________ is a financial market where long-term debt securities such as
government bonds and corporate bonds are bought and sold.
a) Stock market b) Foreign exchange market c) Money market d) Bond market
Answer: d) Bond market
76. A __________ is a financial instrument that represents a fractional ownership in a
company, and provides the holder with a claim on a portion of the company's profits and
assets.
a) Bond b) Stock c) Derivative d) Mutual fund
Answer: b) Stock
77. A __________ is a financial market where short-term debt securities such as Treasury
bills and commercial paper are bought and sold.
a) Bond market b) Foreign exchange market c) Stock market d) Money market
Answer: d) Money market
78. A __________ is a financial contract that obligates the holder to buy or sell an
underlying asset at a certain price on a specific date in the future.
a) Forward contract b) Option contract c) Futures contract d) Swap contract
Answer: c) Futures contract
79. A __________ is a financial institution that underwrites and sells securities to investors
and helps companies raise capital.
a) Stockbroker b) Commercial bank c) Investment bank d) Insurance company
Answer: c) Investment bank
80. A __________ is a financial market where stocks and other equity securities are bought
and sold.
a) Bond market b) Foreign exchange market c) Money market d) Stock market
Answer: d) Stock market
81. A __________ is a financial tool that allows an investor to bet on the price movement
of an underlying asset, such as a stock or commodity.
a) ETF b) Mutual fund c) Derivative d) Bond
Answer: c) Derivative
82. A __________ is a financial statement that shows a company's cash and cash
equivalents, accounts receivable, inventory, and other current assets.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: a) Balance sheet
83. A __________ is a financial metric that measures the return on an investment,
calculated as the net income divided by the total amount invested.
a) ROI b) Gross margin c) Net profit margin d) Debt-to-equity ratio
Answer: a) ROI
84. A __________ is a financial ratio that measures a company's ability to pay its shortterm debts, calculated by dividing its current assets by its current liabilities.
a) Dividend payout ratio b) Gross margin c) Current ratio d) Debt-to-assets ratio
Answer: c) Current ratio
85. A __________ is a financial instrument that represents a loan made by an investor to a
borrower, and pays a fixed or variable interest rate.
a) Bond b) Stock c) Derivative d) Loan
Answer: a) Bond
86. A __________ is a financial ratio that measures a company's ability to pay its shortterm obligations, calculated by dividing its current assets by its current liabilities.
a) Debt-to-equity ratio b) Return on equity c) Current ratio d) Gross margin
Answer: c) Current ratio
87. A __________ is a financial institution that receives deposits and makes loans, and is
typically insured by the FDIC.
a) Stockbroker b) Commercial bank c) Investment bank d) Insurance company
Answer: b) Commercial bank
88. A __________ is a financial market where bonds and other debt securities are bought
and sold.
a) Stock market b) Foreign exchange market c) Money market d) Bond market
Answer: d) Bond market
89. A __________ is a financial contract that establishes a fixed exchange rate between
two currencies.
a) Forward contract b) Option contract c) Futures contract d) Currency swap
Answer: d) Currency swap
90. A __________ is a financial ratio that measures a company's efficiency, calculated by
dividing its net income by its total assets.
a) Return on assets b) Gross margin c) Return on equity d) Net profit margin
Answer: a) Return on assets
91. A __________ is a financial instrument that gives the holder the right, but not the
obligation, to buy or sell an underlying asset at a specific price and time.
a) Bond b) Stock c) Derivative d) Option
Answer: d) Option
92. A __________ is a financial ratio that measures a company's efficiency in using its
assets to generate profits, calculated by dividing its net income by its total assets.
a) Return on assets b) Gross margin c) Return on equity d) Net profit margin
Answer: a) Return on assets
93. A __________ is a financial statement that shows a company's revenues, costs, and
expenses over a specific period of time, such as a quarter or a year.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: b) Income statement
94. A __________ is a financial institution that provides investment banking services, such
as underwriting and issuing securities, and typically does not take deposits.
a) Stockbroker b) Commercial bank c) Investment bank d) Insurance company
Answer: c) Investment bank
95. A __________ is a financial ratio that measures a company's ability to meet its longterm debt obligations, calculated by dividing its total liabilities by its total shareholders'
equity.
a) Debt-to-equity ratio b) Return on equity c) Current ratio d) Gross margin
Answer: a) Debt-to-equity ratio
96. A __________ is a financial market where futures contracts and other derivatives are
bought and sold.
a) Stock market b) Foreign exchange market c) Money market d) Derivatives market
Answer: d) Derivatives market
97. A __________ is a financial contract that establishes a fixed price for the delivery of a
commodity or financial asset at a specific future date.
a) Forward contract b) Option contract c) Futures contract d) Currency swap
Answer: c) Futures contract
98. A __________ is a financial ratio that measures a company's ability to pay its dividends,
calculated by dividing its net income by its dividends per share.
a) Dividend payout ratio b) Gross margin c) Return on equity d) Net profit margin
Answer: a) Dividend payout ratio
99. A __________ is a financial statement that shows a company's cash inflows and
outflows from operating, investing, and financing activities over a specific period of time,
such as a quarter or a year.
a) Balance sheet b) Income statement c) Cash flow statement d) Annual report
Answer: c) Cash flow statement
100. A __________ is a financial instrument that represents a claim on a share of the
ownership in a corporation.
a) Bond b) Stock c) Derivative d) Option
Answer: b) Stock