Money & Economics Quiz

1. What does GDP stand for?

1. General Domestic Production
2. Global Development Plan
3. Gross Development Percentage
4. Gross Domestic Product

2. What is inflation?

1. A fall in the value of shares
2. A general rise in prices over time, reducing purchasing power
3. An increase in a country's GDP
4. An increase in government spending

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

1. The IMF (International Monetary Fund)
2. The UN Development Programme
3. The World Bank
4. The WTO

4. What is a stock market 'bull market'?

1. A market dominated by large companies
2. A market falling rapidly
3. A market rising over a sustained period
4. A market with high volatility

5. What is the currency of the United States?

1. Dollar
2. Euro
3. Franc
4. Pound

6. What is 'compound interest'?

1. A fixed rate of interest
2. Interest charged on late payments
3. Interest earned on both the original principal and previously accumulated interest
4. Interest paid only on the original principal

7. What does the term 'recession' mean in economics?

1. A period of slow but positive economic growth
2. A period of very high inflation
3. A stock market crash
4. Two consecutive quarters of negative GDP growth

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

1. China
2. Germany
3. Japan
4. USA

9. What is 'supply and demand' in economics?

1. Government control of prices and production
2. The balance between exports and imports
3. The more available something is, the lower its price; the more desired, the higher its price
4. The relationship between what is produced and what is needed

10. What is a 'mortgage'?

1. A government housing benefit
2. A loan specifically to buy property, secured against that property
3. A tax on property ownership
4. A type of savings account

11. What does FTSE 100 track?

1. 100 global technology companies
2. The top 100 companies listed on the London Stock Exchange
3. The top 100 US companies
4. Top 100 European companies by GDP

12. What is 'quantitative easing'?

1. A central bank creating new money to buy financial assets
2. Increasing taxes to control inflation
3. Lowering interest rates to stimulate borrowing
4. Reducing government spending

13. What is the 'minimum wage'?

1. A voluntary guideline for employers
2. The average wage in an economy
3. The lowest legal hourly pay an employer can pay a worker
4. The wage needed to cover basic living costs

14. What is 'capitalism'?

1. A government planning all production
2. A system where wealth is distributed equally
3. An economic system where businesses are privately owned and operated for profit
4. An economic system where the state owns all businesses

15. What is a 'dividend'?

1. A fee charged by banks
2. A payment made by a company to its shareholders from its profits
3. A tax on company profits
4. The price of a share

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

1. 1919
2. 1924
3. 1929
4. 1933

17. What does 'austerity' mean in economic policy?

1. Government cuts spending and raises taxes to reduce debt
2. Government spending increases to stimulate growth
3. Printing more money to boost the economy
4. Reducing interest rates

18. What is 'cryptocurrency'?

1. A coded way to encrypt bank transactions
2. A decentralised digital currency using cryptography, not controlled by any bank
3. A government-backed digital currency
4. Digital tokens redeemable for real currency

19. What is the 'World Bank'?

1. A bank owned by all the world's governments
2. A global commercial bank open to all customers
3. An international financial institution that provides loans to developing countries
4. The bank that manages the US dollar

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

1. Illegally hiding income from tax authorities
2. Legally using tax rules to reduce the amount of tax paid
3. Paying taxes in the wrong country
4. Refusing to pay any tax