Banking English Mock Test

Free English Mock Test for Banking

September 19, 2024

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Free Online Mock Test for Bank Exam—यदि आप Banking परीक्षा की तैयारी के लिए English subject के प्रश्न करना चाहते है तो आप यहाँ से mock test करें।

Why Take This Mock Test?

हमारा mock टेस्ट एक वास्तविक परीक्षा का अनुभव प्रदान करता है, जिससे आप वास्तविक बैंकिंग परीक्षाओं में सामना किए जाने वाले सवालों के साथ अभ्यास कर सकते हैं। यह विभिन्न टॉपिक्स को कवर करता है ताकि आप परीक्षा के हर पहलू के लिए अच्छी तरह से तैयार हो सकें।

What Topics Are Covered?

यह mock टेस्ट निम्नलिखित महत्वपूर्ण इंग्लिश टॉपिक पर आधारित है:

Banking Terminology
Vocabulary
Grammar and Sentence Structure
Reading Comprehension
Error Spotting and Sentence Correction
Numerical Ability

अपने बैंक एग्जाम के लिए आत्म-विश्वास बढ़ाएं हमारे Free Online Mock Test for Bank Exam के साथ। आज ही अभ्यास शुरू करें और अपनी बैंकिंग परीक्षा में सफलता की दिशा में पहला कदम उठाएं।

English Sectional Mock Test For Bank Exams

Question 1: What is the meaning of the term “Amortization” in finance?

a) The gradual repayment of a loan through regular payments.
b) The process of calculating annual income taxes.
c) The reduction in the value of an asset due to depreciation.
d) The issuance of new shares by a company.

**Answer: a) The gradual repayment of a loan through regular payments.**

Amortization refers to the process of gradually repaying a loan over time through regular payments that cover both the principal and the interest. This method ensures that the loan is paid off in full by the end of the term.

Question 2: Choose the correct sentence.

a) The bank has been updated their policies recently.
b) The bank updates their policies recently.
c) The bank updated their policies recently.
d) The bank update their policies recently.

**Answer: c) The bank updated their policies recently.**

The correct sentence is “The bank updated their policies recently.” It uses the past tense to indicate that the action of updating occurred in the past.

Question 3: Fill in the blank: “The manager is responsible ____ approving loan applications.”

a) in
b) at
c) for
d) of

**Answer: c) for**

The correct preposition is “for.” The sentence should read, “The manager is responsible for approving loan applications.”

Question 4: What does “NPA” stand for in banking?

a) Non-Performing Asset.
b) National Payment Agency.
c) New Public Account.
d) Non-Profit Account.

**Answer: a) Non-Performing Asset.**

NPA stands for Non-Performing Asset, which refers to loans or advances where the borrower has not made any interest or principal repayments for a specified period.

Question 5: Read the following passage and answer the question below:

“Interest rates play a significant role in the economy as they influence borrowing and spending patterns. When interest rates are high, borrowing becomes expensive, which can slow down economic growth.”

Question: How do high interest rates affect borrowing according to the passage?

a) They make borrowing cheaper.
b) They have no effect on borrowing.
c) They make borrowing more expensive.
d) They increase economic growth.

**Answer: c) They make borrowing more expensive.**

High interest rates make borrowing more expensive, which can slow down economic growth as people and businesses may be less likely to take out loans.

Question 6: Choose the correct word to complete the sentence: “The bank’s new policy aims to improve the _____ of its services.”

a) quality
b) quantity
c) nature
d) subject

**Answer: a) quality**

The sentence should read, “The bank’s new policy aims to improve the quality of its services.” “Quality” is the appropriate word to describe the standard of services.

Question 7: Identify the grammatical error in the following sentence: “The bank offer a range of financial services, including loans and investments.”

a) The bank
b) offer
c) a range
d) services

**Answer: b) offer**

The correct word should be “offers” to agree with the singular subject “The bank.” The corrected sentence is “The bank offers a range of financial services, including loans and investments.”

Question 8: Rearrange the following sentences to form a coherent paragraph:

Banks provide various financial products to meet customer needs.
These products include savings accounts, loans, and credit cards.
Financial products are essential for managing personal and business finances.
Understanding these products helps customers make informed decisions.

Options:

a) 1, 2, 3, 4
b) 4, 1, 2, 3
c) 2, 1, 3, 4
d) 1, 3, 2, 4

**Answer: b) 4, 1, 2, 3**

The correct order is 4, 1, 2, 3. The paragraph begins with the importance of understanding financial products, followed by how banks provide various products and their role in financial management.

Question 9: Complete the sentence: “The central bank uses _____ to control inflation in the economy.”

a) fiscal policies
b) monetary policies
c) trade regulations
d) tax incentives

**Answer: b) monetary policies**

The central bank uses monetary policies to control inflation by adjusting interest rates and other financial mechanisms to stabilize the economy.

Question 10: What is the term for a loan that is secured by collateral?

a) Unsecured loan
b) Secured loan
c) Revolving credit
d) Line of credit

**Answer: b) Secured loan**

A secured loan is one that is backed by collateral, providing the lender with security in case the borrower defaults on the loan.

Question 11: Choose the correct word to complete the sentence: “The auditor reviewed the company’s financial _____ to ensure accuracy.”

a) statements
b) activities
c) feedback
d) projections

**Answer: a) statements**

The correct word is “statements.” The sentence should read, “The auditor reviewed the company’s financial statements to ensure accuracy.”

Question 12: What does the term “Liquidity” refer to in finance?

a) The amount of profit a company generates.
b) The ease with which assets can be converted into cash.
c) The total revenue of a company.
d) The level of debt a company has.

**Answer: b) The ease with which assets can be converted into cash.**

“Liquidity” refers to how easily assets can be converted into cash without affecting their price.

Question 13: Fill in the blank: “The interest rate on a fixed deposit is typically _____ than that on a savings account.”

a) lower
b) higher
c) the same
d) non-existent

**Answer: b) higher**

The interest rate on a fixed deposit is typically higher than that on a savings account.

Question 14: Identify the error in the following sentence: “The bank have provided a loan to the customer with favorable terms.”

a) The bank
b) have provided
c) a loan
d) favorable terms

**Answer: b) have provided**

The correct phrase should be “has provided” to agree with the singular subject “The bank.” The corrected sentence is “The bank has provided a loan to the customer with favorable terms.”

Question 15: Read the following passage and answer the question below:

“The Federal Reserve adjusts interest rates to manage economic growth and control inflation. Lowering interest rates can stimulate borrowing and spending, while raising rates can slow down an overheated economy.”

Question: What is the purpose of adjusting interest rates according to the passage?

a) To manage economic growth and control inflation.
b) To increase the federal budget.
c) To create more jobs.
d) To reduce the national debt.

**Answer: a) To manage economic growth and control inflation.**

Adjusting interest rates helps manage economic growth and control inflation by influencing borrowing and spending.

Question 16: Choose the correct sentence.

a) The report were submitted to the manager yesterday.
b) The report was submitted to the manager yesterday.
c) The reports was submitted to the manager yesterday.
d) The report submit to the manager yesterday.

**Answer: b) The report was submitted to the manager yesterday.**

The correct sentence is “The report was submitted to the manager yesterday.” It uses the past tense “was” correctly to indicate that the action occurred in the past.

Question 17: Fill in the blank: “A _____ is a financial product that combines insurance with investment.”

a) savings account
b) credit card
c) mutual fund
d) unit-linked insurance plan (ULIP)

**Answer: d) unit-linked insurance plan (ULIP)**

A unit-linked insurance plan (ULIP) is a financial product that combines insurance with investment.

Question 18: Identify the grammatical error in the following sentence: “The bank was providing loan facilities to customers who were eligible.”

a) The bank
b) was providing
c) loan facilities
d) were eligible

**Answer: b) was providing**

The correct phrase should be “provided” to indicate the past action. The corrected sentence is “The bank provided loan facilities to customers who were eligible.”

Question 19: Rearrange the following sentences to form a coherent paragraph:

Effective communication is crucial for successful financial management.
It helps in understanding the financial needs and concerns of clients.
Financial advisors must be able to explain complex financial terms clearly.
This ensures that clients make informed decisions about their investments.

Options:

a) 1, 2, 3, 4
b) 2, 3, 1, 4
c) 3, 2, 4, 1
d) 1, 3, 2, 4

**Answer: d) 1, 3, 2, 4**

The correct order is 1, 3, 2, 4. The paragraph starts with the importance of effective communication, followed by how it helps in understanding clients’ needs and ensuring informed decisions.

Question 20: Complete the sentence: “The bank’s risk management strategy focuses on minimizing _____.”

a) profits
b) expenses
c) potential losses
d) customer service

**Answer: c) potential losses**

The bank’s risk management strategy focuses on minimizing potential losses by identifying and mitigating financial risks.

Question 21: Choose the correct word to complete the sentence: “A _____ is an amount of money borrowed by one party from another.”

a) deposit
b) premium
c) loan
d) dividend

**Answer: c) loan**

A loan is an amount of money borrowed by one party from another, typically to be repaid with interest.

Question 22: What does “FICO score” represent in finance?

a) A type of credit card
b) A measure of a borrower’s creditworthiness
c) A financial investment strategy
d) A bank’s annual profit

**Answer: b) A measure of a borrower’s creditworthiness**

A FICO score is a measure of a borrower’s creditworthiness used by lenders to evaluate the risk of lending money.

Question 23: Identify the error in the following sentence: “If I would have known about the loan terms, I would have applied earlier.”

a) If I would have
b) known about
c) the loan terms
d) applied earlier

**Answer: a) If I would have**

The correct phrase is “If I had known” to indicate a hypothetical situation. The corrected sentence is “If I had known about the loan terms, I would have applied earlier.”

Question 24: Fill in the blank: “A financial statement that shows a company’s revenue and expenses is called an _____ statement.”

a) equity
b) income
c) balance
d) cash flow

**Answer: b) income**

An income statement shows a company’s revenue and expenses over a specific period, providing insight into profitability.

Question 25: Choose the correct sentence.

a) The customers were informed about the changes in policy by the bank.
b) The customers was informed about the changes in policy by the bank.
c) The customers inform about the changes in policy by the bank.
d) The customer were informed about the changes in policy by the bank.

**Answer: a) The customers were informed about the changes in policy by the bank.**

The correct sentence is “The customers were informed about the changes in policy by the bank.” It uses the past tense “were informed” correctly for plural subject “customers.”

Question 26: What is the term for the amount of money a borrower must pay in addition to the principal on a loan?

a) Interest
b) Amortization
c) Collateral
d) Principal

**Answer: a) Interest**

Interest is the amount of money a borrower must pay in addition to the principal on a loan, representing the cost of borrowing.

Question 27: Rearrange the following sentences to form a coherent paragraph:

Diversifying investments helps in spreading risk.
Investing in a single asset class can lead to significant losses.
A balanced investment portfolio includes a mix of asset types.
Investors should consider various options to achieve their financial goals.

Options:

a) 1, 2, 4, 3
b) 2, 3, 1, 4
c) 3, 1, 2, 4
d) 4, 2, 3, 1

**Answer: c) 3, 1, 2, 4**

The correct order is 3, 1, 2, 4. The paragraph begins with the importance of diversifying investments, the risks of not diversifying, and the benefits of a balanced portfolio.

Question 28: Identify the correct usage of the word “capital” in finance.

a) The physical cash held by a company.
b) The total amount of money invested in a business.
c) The number of employees in a company.
d) The location where a company is headquartered.

**Answer: b) The total amount of money invested in a business.**

In finance, “capital” refers to the total amount of money invested in a business to fund operations and growth.

Question 29: Complete the sentence: “To assess a company’s financial health, one should analyze its _____.”

a) stock market trends
b) employees’ performance
c) financial statements
d) advertising campaigns

**Answer: c) financial statements**

To assess a company’s financial health, one should analyze its financial statements, which provide detailed information about its financial position and performance.

Question 30: Choose the correct sentence.

a) Each of the bank’s branches have their own procedures.
b) Each of the bank’s branches has their own procedures.
c) Each of the bank’s branch have its own procedures.
d) Each of the bank’s branches has its own procedures.

**Answer: d) Each of the bank’s branches has its own procedures.**

The correct sentence is “Each of the bank’s branches has its own procedures.” “Has” is used correctly with the singular subject “Each” and the plural noun “branches.”

Question 31: What does the acronym “GDP” stand for in economic terms?

a) Gross Domestic Product
b) General Domestic Profit
c) Government Debt Portfolio
d) Global Development Plan

**Answer: a) Gross Domestic Product**

GDP stands for Gross Domestic Product, which measures the total value of all goods and services produced in a country over a specific period.

Question 32: Fill in the blank: “The process of examining financial records to ensure their accuracy is known as _____.”

a) auditing
b) budgeting
c) investing
d) forecasting

**Answer: a) auditing**

Auditing is the process of examining financial records to ensure their accuracy and compliance with accounting standards.

Question 33: Identify the error in the following sentence: “The company is planning to expands its operations to new markets.”

a) is planning
b) to expands
c) its operations
d) new markets

**Answer: b) to expands**

The correct phrase should be “to expand” instead of “to expands.” The corrected sentence is “The company is planning to expand its operations to new markets.”

Question 34: What is a “dividend” in the context of stocks?

a) A form of loan provided to shareholders.
b) A share of a company’s profits paid to shareholders.
c) A fee charged by the company for issuing shares.
d) An amount invested by the company in other businesses.

**Answer: b) A share of a company’s profits paid to shareholders.**

A dividend is a share of a company’s profits paid out to shareholders as a return on their investment.

Question 35: Choose the correct usage of the word “asset.”

a) An asset is something a company owns that has value.
b) An asset is a type of expense in a company’s financial statements.
c) An asset refers to the company’s revenue.
d) An asset is a form of debt.

**Answer: a) An asset is something a company owns that has value.**

An asset is something a company owns that has value and can be used to generate income.

Question 36: What is “capital gain” in finance?

a) The increase in the value of an asset over time.
b) The amount paid for a loan.
c) The interest earned on savings.
d) The profit from a company’s operations.

**Answer: a) The increase in the value of an asset over time.**

Capital gain refers to the increase in the value of an asset over time, realized when the asset is sold at a higher price than its purchase price.

Question 37: Fill in the blank: “A _____ account allows depositors to earn interest while maintaining access to their funds.”

a) savings
b) checking
c) investment
d) retirement

**Answer: a) savings**

A savings account allows depositors to earn interest on their deposits while maintaining easy access to their funds.

Question 38: Identify the grammatical error in the following sentence: “The bank has been offering various loans options to its customers.”

a) has been offering
b) various loans options
c) to its customers
d) None

**Answer: b) various loans options**

The correct phrase should be “various loan options.” The corrected sentence is “The bank has been offering various loan options to its customers.”

Question 39: Rearrange the following sentences to form a coherent paragraph:

Credit cards offer convenience and flexibility for making purchases.
They can also lead to high-interest debt if not managed properly.
It is important to use credit cards responsibly to avoid financial problems.
Understanding the terms and conditions of your credit card is essential.

Options:

a) 1, 2, 4, 3
b) 4, 1, 2, 3
c) 3, 1, 2, 4
d) 1, 3, 2, 4

**Answer: d) 1, 3, 2, 4**

The correct order is 1, 3, 2, 4. The paragraph begins with the benefits of credit cards, followed by the importance of responsible use, potential issues, and understanding terms.

Question 40: What is the purpose of “depreciation” in accounting?

a) To measure the total value of a company’s assets.
b) To allocate the cost of an asset over its useful life.
c) To calculate the company’s profit margins.
d) To determine the interest rates for loans.

**Answer: b) To allocate the cost of an asset over its useful life.**

Depreciation is used in accounting to allocate the cost of a tangible asset over its useful life, reflecting its reduction in value over time.

Question 41: Complete the sentence: “A ____ is a formal agreement to lend or borrow money, typically involving regular payments and interest.”

a) contract
b) loan
c) grant
d) subsidy

**Answer: b) loan**

A loan is a formal agreement to lend or borrow money, involving regular payments and interest.

Question 42: Identify the correct usage of the word “equity.”

a) Equity refers to the value of an asset minus any liabilities.
b) Equity is the total income generated by a company.
c) Equity represents the cost of goods sold.
d) Equity refers to a company’s expenses.

**Answer: a) Equity refers to the value of an asset minus any liabilities.**

Equity refers to the value of an asset minus any liabilities, representing ownership interest in the asset.

Question 43: What is the meaning of “inflation” in economic terms?

a) The increase in the general level of prices over time.
b) The reduction in the supply of goods and services.
c) The increase in the interest rates by central banks.
d) The total national income of a country.

**Answer: a) The increase in the general level of prices over time.**

Inflation refers to the increase in the general level of prices for goods and services over time, reducing purchasing power.

Question 44: Choose the correct sentence.

a) The company are planning to launch a new product next quarter.
b) The company is planning to launch a new product next quarter.
c) The companies is planning to launch a new product next quarter.
d) The company plans to launching a new product next quarter.

**Answer: b) The company is planning to launch a new product next quarter.**

The correct sentence is “The company is planning to launch a new product next quarter.” It uses the correct form “is planning” for the singular subject “company.”

Question 45: What is a “bear market” in stock trading?

a) A market where stock prices are rising.
b) A market where stock prices are falling.
c) A market with no significant price movement.
d) A market where prices are stable.

**Answer: b) A market where stock prices are falling.**

A bear market is characterized by falling stock prices, typically by 20% or more from recent highs.

Question 46: Fill in the blank: “A _____ is a summary of a company’s financial performance over a specific period.”

a) balance sheet
b) cash flow statement
c) income statement
d) shareholder report

**Answer: c) income statement**

An income statement summarizes a company’s financial performance, including revenues, expenses, and profits over a specific period.

Question 47: Choose the correct word to complete the sentence: “The ____ of a business includes its assets, liabilities, and equity.”

a) cash flow
b) income
c) balance sheet
d) revenue

**Answer: c) balance sheet**

The balance sheet includes a business’s assets, liabilities, and equity, providing a snapshot of its financial position.

Question 48: Identify the error in the following sentence: “The analyst were able to interpret the data accurately.”

a) The analyst
b) were able to
c) interpret
d) the data

**Answer: b) were able to**

The correct phrase should be “was able to” to agree with the singular subject “The analyst.” The corrected sentence is “The analyst was able to interpret the data accurately.”

Question 49: Rearrange the following sentences to form a coherent paragraph:

Understanding financial ratios is essential for assessing a company’s performance.
Ratios such as return on equity and current ratio provide valuable insights.
Financial ratios help investors and analysts make informed decisions.
These ratios can indicate the company’s profitability, liquidity, and solvency.

Options:

a) 1, 3, 2, 4
b) 2, 4, 1, 3
c) 3, 1, 2, 4
d) 1, 2, 3, 4

**Answer: d) 1, 2, 3, 4**

The correct order is 1, 2, 3, 4. The paragraph starts with the importance of understanding financial ratios, followed by examples of ratios and their benefits for decision-making.

Question 50: What does “capital expenditure” refer to in business?

a) Money spent on day-to-day operations.
b) Investment in long-term assets or improvements.
c) Payment of short-term liabilities.
d) Revenue generated from sales.

**Answer: b) Investment in long-term assets or improvements.**

Capital expenditure refers to money spent on acquiring or improving long-term assets, such as property or equipment, that will benefit the company for years.

Question 51: Choose the correct usage of “their” in a sentence.

a) The company increased their budget for marketing.
b) The company increased there budget for marketing.
c) The company increased its budget for marketing.
d) The company increased it’s budget for marketing.

**Answer: a) The company increased their budget for marketing.**

The correct usage is “The company increased their budget for marketing,” as “their” refers to the singular noun “company” in a more general sense.

Question 52: Fill in the blank: “In financial reporting, the _____ statement shows cash inflows and outflows.”

a) income
b) balance sheet
c) cash flow
d) equity

**Answer: c) cash flow**

The cash flow statement shows the cash inflows and outflows of a company, detailing its liquidity and financial health.

Question 53: What is the purpose of “budgeting” in financial management?

a) To analyze past financial performance.
b) To predict future financial outcomes and allocate resources.
c) To determine the value of assets.
d) To review tax returns.

**Answer: b) To predict future financial outcomes and allocate resources.**

Budgeting is used to predict future financial outcomes and allocate resources efficiently to achieve financial goals.

Question 54: Identify the grammatical error in the following sentence: “Neither the manager nor the employees were aware of the new policy.”

a) Neither
b) were aware
c) the manager
d) the employees

**Answer: b) were aware**

The correct phrase should be “was aware” to agree with the singular subject “Neither… nor.” The corrected sentence is “Neither the manager nor the employees was aware of the new policy.”

Question 55: Rearrange the following sentences to form a coherent paragraph:

Financial ratios help in evaluating a company’s profitability, liquidity, and solvency.
They are useful tools for investors and analysts.
Common ratios include the debt-to-equity ratio and the current ratio.
These ratios provide insights into different aspects of a company’s financial health.

Options:

a) 1, 2, 3, 4
b) 2, 3, 1, 4
c) 4, 1, 3, 2
d) 3, 4, 2, 1

**Answer: a) 1, 2, 3, 4**

The correct order is 1, 2, 3, 4. The paragraph begins with the importance of financial ratios, followed by examples and their usefulness for evaluation.

Question 56: What is “leverage” in financial terms?

a) The use of debt to increase potential returns.
b) The amount of cash held by a company.
c) The value of a company’s stock.
d) The total revenue from sales.

**Answer: a) The use of debt to increase potential returns.**

Leverage refers to the use of borrowed funds (debt) to increase the potential return on investment.

Question 57: Fill in the blank: “The _____ is the portion of a company’s profit allocated to its shareholders.”

a) net income
b) dividend
c) retained earnings
d) operating income

**Answer: b) dividend**

The dividend is the portion of a company’s profit distributed to its shareholders as a return on their investment.

Question 58: Choose the correct sentence.

a) The financial analyst analyses the market trends daily.
b) The financial analyst analyze the market trends daily.
c) The financial analyst analyzing the market trends daily.
d) The financial analysts analyze the market trends daily.

**Answer: d) The financial analysts analyze the market trends daily.**

The correct sentence is “The financial analysts analyze the market trends daily,” using the plural form “analysts” with the appropriate verb “analyze.”

Question 59: What is “working capital” in financial management?

a) The total value of a company’s fixed assets.
b) The difference between a company’s current assets and current liabilities.
c) The amount of money invested in long-term projects.
d) The revenue generated from sales activities.

**Answer: b) The difference between a company’s current assets and current liabilities.**

Working capital refers to the difference between a company’s current assets and current liabilities, indicating its short-term financial health.

Question 60: Fill in the blank: “A _____ is a legal document that outlines the terms of an agreement between two parties.”

a) report
b) contract
c) policy
d) memo

**Answer: b) contract**

A contract is a legal document that outlines the terms and conditions of an agreement between two parties.

Question 61: What does “net profit” represent in financial statements?

a) Total revenue minus total expenses.
b) Total revenue minus cost of goods sold.
c) Total assets minus total liabilities.
d) Total income minus operating expenses.

**Answer: a) Total revenue minus total expenses.**

Net profit represents the total revenue minus all expenses, including operating costs, taxes, and interest, indicating a company’s profitability.

Question 62: Choose the correct sentence.

a) The manager was aware of the company’s financial status.
b) The manager was aware about the company’s financial status.
c) The manager was aware of about the company’s financial status.
d) The manager was aware the company’s financial status.

**Answer: a) The manager was aware of the company’s financial status.**

The correct sentence is “The manager was aware of the company’s financial status.” The phrase “aware of” correctly indicates understanding or knowledge.

Question 63: What is the purpose of an “audit”?

a) To assess and review the accuracy of financial statements.
b) To increase a company’s profit margin.
c) To design financial strategies for investment.
d) To manage daily business operations.

**Answer: a) To assess and review the accuracy of financial statements.**

An audit assesses and reviews the accuracy and completeness of financial statements, ensuring compliance with accounting standards.

Question 64: Fill in the blank: “The _____ is a document that summarizes the financial position of a company at a specific point in time.”

a) cash flow statement
b) income statement
c) balance sheet
d) shareholder equity statement

**Answer: c) balance sheet**

The balance sheet summarizes a company’s financial position at a specific point in time, detailing assets, liabilities, and equity.

Question 65: What is “return on investment” (ROI)?

a) The amount of money received from investments.
b) The ratio of net profit to the cost of the investment.
c) The total revenue generated from an investment.
d) The increase in stock value over time.

**Answer: b) The ratio of net profit to the cost of the investment.**

Return on investment (ROI) is the ratio of net profit to the cost of the investment, measuring the profitability of the investment.

Question 66: Choose the correct word to complete the sentence: “The company’s _____ growth is evident in the increasing number of customers.”

a) steady
b) steadier
c) steadiness
d) steadying

**Answer: a) steady**

The correct word is “steady,” indicating consistent and ongoing growth.

Question 67: What is a “credit score”?

a) A measure of an individual’s creditworthiness.
b) The amount of money borrowed from the bank.
c) A statement of account balance.
d) The rate of interest on a loan.

**Answer: a) A measure of an individual’s creditworthiness.**

A credit score is a measure of an individual’s creditworthiness, reflecting their ability to repay borrowed money.

Question 68: Fill in the blank: “A _____ is a written agreement to pay a specified amount of money to a lender over time.”

a) promissory note
b) cash flow statement
c) balance sheet
d) income statement

**Answer: a) promissory note**

A promissory note is a written agreement to repay a specified amount of money to a lender over a set period.

Question 69: What does “liquidity” refer to in finance?

a) The ease with which an asset can be converted into cash.
b) The total amount of debt a company has.
c) The rate at which interest is charged on loans.
d) The value of a company’s stock.

**Answer: a) The ease with which an asset can be converted into cash.**

Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market value.

Question 70: Choose the correct sentence.

a) The report was completed on time and with high quality.
b) The report was completed on time and with high quality.
c) The report were completed on time and with high quality.
d) The reports were completed on time and with high quality.

**Answer: a) The report was completed on time and with high quality.**

The correct sentence is “The report was completed on time and with high quality,” using the singular “was” for the singular noun “report.”

Question 71: What is “amortization”?

a) The gradual repayment of a loan over time.
b) The process of increasing the value of an asset.
c) The allocation of expenses for a single accounting period.
d) The sale of a long-term asset.

**Answer: a) The gradual repayment of a loan over time.**

Amortization refers to the gradual repayment of a loan’s principal and interest over time through periodic payments.

Question 72: Fill in the blank: “In accounting, _____ represents the cost of goods sold minus gross profit.”

a) operating income
b) net income
c) gross margin
d) revenue

**Answer: a) operating income**

Operating income represents the cost of goods sold minus gross profit, showing the profit generated from normal business operations.

Question 73: What is “capital gain”?

a) The profit from selling an asset at a higher price than its purchase price.
b) The income earned from interest or dividends.
c) The value of an asset in its current market.
d) The cost associated with maintaining an asset.

**Answer: a) The profit from selling an asset at a higher price than its purchase price.**

Capital gain is the profit earned from selling an asset for more than its purchase price.

Question 74: Choose the correct word to complete the sentence: “The company’s _____ was impressive this quarter.”

a) performance
b) perform
c) performing
d) performs

**Answer: a) performance**

The correct word is “performance,” referring to how well the company performed during the quarter.

Question 75: What is “depreciation”?

a) The reduction in value of an asset over time.
b) The increase in an asset’s market value.
c) The total cost of acquiring an asset.
d) The income earned from an asset.

**Answer: a) The reduction in value of an asset over time.**

Depreciation is the reduction in the value of an asset over time due to wear and tear or obsolescence.

Question 76: Fill in the blank: “_____ is a type of financing where a company sells its receivables to a third party at a discount.”

a) Factoring
b) Leasing
c) Equity financing
d) Debt restructuring

**Answer: a) Factoring**

Factoring is a type of financing where a company sells its receivables to a third party at a discount to receive immediate cash.

Question 77: What is a “financial statement”?

a) A document that summarizes the financial performance and position of a company.
b) A report on daily business transactions.
c) A plan for future investments.
d) An invoice for payment.

**Answer: a) A document that summarizes the financial performance and position of a company.**

A financial statement summarizes a company’s financial performance and position, including balance sheet, income statement, and cash flow statement.

Question 78: Choose the correct sentence.

a) The accountant has prepared the budget for the upcoming fiscal year.
b) The accountant have prepared the budget for the upcoming fiscal year.
c) The accountant had prepared the budget for the upcoming fiscal year.
d) The accountants has prepared the budget for the upcoming fiscal year.

**Answer: a) The accountant has prepared the budget for the upcoming fiscal year.**

The correct sentence is “The accountant has prepared the budget for the upcoming fiscal year,” using the singular “has” for the singular noun “accountant.”

Question 79: What is “earnings before interest and taxes” (EBIT)?

a) The amount of profit before accounting for interest and taxes.
b) The total revenue minus cost of goods sold.
c) The amount of profit after all expenses and taxes.
d) The net income after deducting operating expenses.

**Answer: a) The amount of profit before accounting for interest and taxes.**

Earnings Before Interest and Taxes (EBIT) is the profit a company makes before accounting for interest and taxes, indicating operating performance.

Question 80: Fill in the blank: “A _____ is an investment that involves a relatively high degree of risk.”

a) stock
b) bond
c) savings account
d) certificate of deposit

**Answer: a) stock**

A stock is an investment that involves a higher degree of risk compared to bonds, savings accounts, or certificates of deposit.

Question 81: What is “liability” in financial terms?

a) A company’s financial obligation or debt.
b) The total revenue generated by a company.
c) The value of assets owned by a company.
d) The amount of profit earned from sales.

**Answer: a) A company’s financial obligation or debt.**

Liability refers to a company’s financial obligations or debts that need to be settled over time.

Question 82: Choose the correct sentence.

a) The quarterly report will be submitted to the management team.
b) The quarterly reports will be submitted to the management team.
c) The quarterly report will be submitted to management team.
d) The quarterly report will be submit to the management team.

**Answer: a) The quarterly report will be submitted to the management team.**

The correct sentence is “The quarterly report will be submitted to the management team,” using the singular “report” and the appropriate verb “will be submitted.”

Question 83: What does “revenue” refer to in a business context?

a) The total income generated from business activities.
b) The total cost incurred in producing goods or services.
c) The amount of profit after all expenses.
d) The value of assets owned by the company.

**Answer: a) The total income generated from business activities.**

Revenue refers to the total income generated from a company’s business activities before deducting any costs or expenses.

Question 84: Fill in the blank: “_____ is the process of evaluating a company’s financial performance over a specified period.”

a) Financial analysis
b) Budget planning
c) Investment strategy
d) Risk assessment

**Answer: a) Financial analysis**

Financial analysis is the process of evaluating a company’s financial performance over a specific period to understand its financial health.

Question 85: What is “gross profit”?

a) The total revenue minus the cost of goods sold.
b) The total revenue minus operating expenses.
c) The net income after deducting taxes.
d) The amount of profit earned from investments.

**Answer: a) The total revenue minus the cost of goods sold.**

Gross profit is the amount of revenue remaining after subtracting the cost of goods sold, indicating a company’s profitability from core operations.

Question 86: Choose the correct sentence.

a) The financial report was accurate and detailed.
b) The financial report were accurate and detailed.
c) The financial reports was accurate and detailed.
d) The financial report was accurate and detail.

**Answer: a) The financial report was accurate and detailed.**

The correct sentence is “The financial report was accurate and detailed,” using the singular “was” and the appropriate adjective “detailed.”

Question 87: What does “debt” refer to in finance?

a) Money borrowed that needs to be repaid.
b) The value of company assets.
c) The total revenue generated.
d) The profit from investments.

**Answer: a) Money borrowed that needs to be repaid.**

Debt refers to money borrowed by a company or individual that needs to be repaid with interest.

Question 88: Fill in the blank: “A _____ is a formal proposal to change the terms of an existing loan.”

a) loan modification
b) payment plan
c) credit application
d) financial statement

**Answer: a) loan modification**

A loan modification is a formal proposal to alter the terms of an existing loan agreement.

Question 89: What is a “stock dividend”?

a) A payment made to shareholders in the form of additional shares.
b) A cash payment made to shareholders based on their shares.
c) A percentage of earnings paid to the government.
d) A loan provided to shareholders.

**Answer: a) A payment made to shareholders in the form of additional shares.**

A stock dividend is a payment made to shareholders in the form of additional shares rather than cash.

Question 90: Choose the correct word to complete the sentence: “The financial team is responsible for _____ the annual budget.”

a) preparing
b) prepare
c) prepares
d) prepared

**Answer: a) preparing**

The correct word is “preparing,” as it is the appropriate verb form to describe the action of the financial team.

Question 91: What does “equity” represent in a company’s balance sheet?

a) The total amount of debt a company has.
b) The value of ownership interest in the company.
c) The total revenue generated by the company.
d) The amount of cash available for operations.

**Answer: b) The value of ownership interest in the company.**

Equity represents the value of ownership interest in the company, calculated as total assets minus total liabilities.

Question 92: Fill in the blank: “A _____ is a financial instrument used to manage risk, often by locking in prices or rates.”

a) hedge
b) dividend
c) loan
d) capital gain

**Answer: a) hedge**

A hedge is a financial instrument used to manage risk by locking in prices or rates to protect against unfavorable changes.

Question 93: What does “capital budgeting” involve?

a) Planning and managing long-term investments in projects and assets.
b) Allocating funds for day-to-day business operations.
c) Managing short-term financial liabilities.
d) Planning for retirement funds and personal investments.

**Answer: a) Planning and managing long-term investments in projects and assets.**

Capital budgeting involves planning and managing long-term investments in projects and assets, evaluating their potential profitability and risks.

Question 94: Choose the correct sentence.

a) The company is planning to expand its operations into new markets.
b) The company are planning to expand its operations into new markets.
c) The company was planning to expand its operations into new markets.
d) The companies are planning to expand its operations into new markets.

**Answer: a) The company is planning to expand its operations into new markets.**

The correct sentence is “The company is planning to expand its operations into new markets,” using the singular “is” for the singular noun “company.”

Question 95: What is “market capitalization”?

a) The total market value of a company’s outstanding shares of stock.
b) The total value of a company’s assets.
c) The total amount of a company’s revenue.
d) The amount of money invested in a company by shareholders.

**Answer: a) The total market value of a company’s outstanding shares of stock.**

Market capitalization is the total market value of a company’s outstanding shares of stock, indicating its overall value in the stock market.

Question 96: Fill in the blank: “The _____ statement provides a summary of a company’s revenues and expenses over a specific period.”

a) income
b) cash flow
c) balance
d) equity

**Answer: a) income**

The income statement provides a summary of a company’s revenues and expenses over a specific period, reflecting its financial performance.

Question 97: What does “liability management” involve?

a) Controlling and managing a company’s financial obligations.
b) Planning long-term investments and growth strategies.
c) Managing short-term operational expenses.
d) Increasing company revenue through marketing strategies.

**Answer: a) Controlling and managing a company’s financial obligations.**

Liability management involves controlling and managing a company’s financial obligations and debts to ensure financial stability.

Question 98: Choose the correct word to complete the sentence: “The company’s _____ was impacted by changes in the market.”

a) profitability
b) profit
c) profitably
d) profitable

**Answer: a) profitability**

The correct word is “profitability,” which refers to the company’s ability to generate profit and how it is affected by market changes.

Question 99: What is “working capital”?

a) The amount of cash available for day-to-day operations.
b) The difference between a company’s total assets and total liabilities.
c) The total value of a company’s long-term investments.
d) The amount of profit after deducting all expenses.

**Answer: a) The amount of cash available for day-to-day operations.**

Working capital is the amount of cash available for day-to-day operations, calculated as current assets minus current liabilities.

Question 100: Fill in the blank: “_____ is the process of analyzing financial data to make informed business decisions.”

a) Financial analysis
b) Risk assessment
c) Budgeting
d) Accounting

**Answer: a) Financial analysis**

Financial analysis is the process of examining financial data to make informed business decisions and evaluate financial performance.