Money & Economics Quiz

Question 1

What does GDP stand for?

Accepted Answer

Gross Domestic Product

Answer

General Domestic Production

Answer

Global Development Plan

Answer

Gross Development Percentage

Question 2

What is inflation?

Accepted Answer

A general rise in prices over time, reducing purchasing power

Answer

An increase in government spending

Answer

A fall in the value of shares

Answer

An increase in a country's GDP

Question 3

Which organisation is known as the 'lender of last resort' for countries in financial crisis?

Accepted Answer

The IMF (International Monetary Fund)

Answer

The World Bank

Answer

The WTO

Answer

The UN Development Programme

Question 4

What is a stock market 'bull market'?

Accepted Answer

A market rising over a sustained period

Answer

A market falling rapidly

Answer

A market with high volatility

Answer

A market dominated by large companies

Question 5

What is the currency of the United States?

Accepted Answer

Dollar

Answer

Pound

Answer

Euro

Answer

Franc

Question 6

What is 'compound interest'?

Accepted Answer

Interest earned on both the original principal and previously accumulated interest

Answer

Interest paid only on the original principal

Answer

A fixed rate of interest

Answer

Interest charged on late payments

Question 7

What does the term 'recession' mean in economics?

Accepted Answer

Two consecutive quarters of negative GDP growth

Answer

A period of slow but positive economic growth

Answer

A stock market crash

Answer

A period of very high inflation

Question 8

Which country has the world's largest economy by GDP?

Accepted Answer

USA

Answer

China

Answer

Japan

Answer

Germany

Question 9

What is 'supply and demand' in economics?

Accepted Answer

The more available something is, the lower its price; the more desired, the higher its price

Answer

The relationship between what is produced and what is needed

Answer

Government control of prices and production

Answer

The balance between exports and imports

Question 10

What is a 'mortgage'?

Accepted Answer

A loan specifically to buy property, secured against that property

Answer

A type of savings account

Answer

A government housing benefit

Answer

A tax on property ownership

Question 11

What does FTSE 100 track?

Accepted Answer

The top 100 companies listed on the London Stock Exchange

Answer

The top 100 US companies

Answer

100 global technology companies

Answer

Top 100 European companies by GDP

Question 12

What is 'quantitative easing'?

Accepted Answer

A central bank creating new money to buy financial assets

Answer

Reducing government spending

Answer

Lowering interest rates to stimulate borrowing

Answer

Increasing taxes to control inflation

Question 13

What is the 'minimum wage'?

Accepted Answer

The lowest legal hourly pay an employer can pay a worker

Answer

The average wage in an economy

Answer

The wage needed to cover basic living costs

Answer

A voluntary guideline for employers

Question 14

What is 'capitalism'?

Accepted Answer

An economic system where businesses are privately owned and operated for profit

Answer

An economic system where the state owns all businesses

Answer

A system where wealth is distributed equally

Answer

A government planning all production

Question 15

What is a 'dividend'?

Accepted Answer

A payment made by a company to its shareholders from its profits

Answer

A tax on company profits

Answer

The price of a share

Answer

A fee charged by banks

Question 16

The Great Depression began after a stock market crash in which year?

Accepted Answer

1929

Answer

1919

Answer

1924

Answer

1933

Question 17

What does 'austerity' mean in economic policy?

Accepted Answer

Government cuts spending and raises taxes to reduce debt

Answer

Government spending increases to stimulate growth

Answer

Printing more money to boost the economy

Answer

Reducing interest rates

Question 18

What is 'cryptocurrency'?

Accepted Answer

A decentralised digital currency using cryptography, not controlled by any bank

Answer

A government-backed digital currency

Answer

A coded way to encrypt bank transactions

Answer

Digital tokens redeemable for real currency

Question 19

What is the 'World Bank'?

Accepted Answer

An international financial institution that provides loans to developing countries

Answer

A global commercial bank open to all customers

Answer

The bank that manages the US dollar

Answer

A bank owned by all the world's governments

Question 20

What is 'tax avoidance' (as distinct from tax evasion)?

Accepted Answer

Legally using tax rules to reduce the amount of tax paid

Answer

Refusing to pay any tax

Answer

Illegally hiding income from tax authorities

Answer

Paying taxes in the wrong country