UK Financial Market Quiz! Trivia
(98).jpg "UK Financial Market Quiz! Trivia - Quiz")
Here we go with a UK Financial Markets Quiz! A financial market gives people and companies the ability to sell and buy financial derivatives and securities such as stock, bonds, and future contracts. Different types of financial markets in the UK include forex, bond, stock, and money markets. This quiz will help you see just how much you know about trading in these markets and some of the common things you should know.
- 1.
Which one of the following factors is most likely to influence foreign exchange rates?
- A.
Mortgage rate
- B.
Increase in money supply
- C.
Interest rates
- D.
Country's borrowing requirements
Correct Answer
C. Interest ratesExplanation
The two main factors underlying the value of a currency and foreign exchange rates are the underlying economic performance of the country and comparative interest rates.Rate this question:
-
- 2.
Which ONE of the following financial institutions acts as a depositary for portfolios as a core service?
- A.
Custodians
- B.
Insurance companies
- C.
Stockbrokers
- D.
Retail banks
Correct Answer
A. CustodiansExplanation
Custodians are banks that specialize in safe custody services, looking after portfolios of shares and bonds on behalf of others.Rate this question:
-
- 3.
Which ONE of the following is the usual measure of the total value of goods and services produced within the UK?
- A.
GNP
- B.
GDP
- C.
RPI
- D.
PSNCR
Correct Answer
B. GDPExplanation
GDP is Gross Domestic Product - it is used as a measure of the UK’s output. It is the total of consumer spending, investment and government spending plus the value of exports minus the value of imports.Rate this question:
-
- 4.
Which ONE of the following is the index used as the official measure of inflation?
- A.
MRI
- B.
GDP
- C.
RPI
- D.
HICP
Correct Answer
D. HICPExplanation
The correct answer is HICP. HICP stands for Harmonized Index of Consumer Prices and is used as the official measure of inflation. It is a measure of price changes of goods and services consumed by households and is used by the European Union and European Central Bank to monitor inflation rates across member countries.Rate this question:
-
- 5.
Which ONE of the following is specifically adjusted for the impact of overseas investment in UK businesses?
- A.
GNP
- B.
PSNCR
- C.
GDP
- D.
Balance of payments
Correct Answer
A. GNPExplanation
GDP (Gross Domestic Product) is a measure of the total of consumer, investment, and government spending plus the value of exports minus the value of imports. GNP (Gross National Product) is the total of GDP plus the income accruing to domestic residents from investments abroad minus income earned in domestic markets accruing to foreigners abroad. The figure, therefore, includes the impact of overseas holdings and investments in businesses.Rate this question:
-
- 6.
Which ONE of the following describes the shortfall between government revenues and expenditure?
- A.
PSDR
- B.
PSNCR
- C.
RPI
- D.
GDP
Correct Answer
B. PSNCRExplanation
If the government spends more than it receives from tax and other revenues, the shortfall is known as the Public Sector Net Cash Requirement (PSNCR) which must be borrowed.Rate this question:
-
- 7.
Which ONE of the following is NOT used to measure inflation?
- A.
HICP
- B.
RPI
- C.
GDP
- D.
RPIX
Correct Answer
C. GDPExplanation
GDP is the gross domestic product and is not used to measure inflation. RPI is the retail price index, RPIX is the retail price index excluding mortgage interest and HICP is the harmonized index of consumer prices.Rate this question:
-
- 8.
Interest rates are set by the Monetary Policy Committee of which ONE of the following organizations?
- A.
The Office of Fair Trading
- B.
The Treasury
- C.
The Department of Trade and Industry
- D.
The Bank of England
Correct Answer
D. The Bank of EnglandExplanation
The Monetary Policy Committee of the Bank of England sets interest rates.Rate this question:
-
- 9.
Which ONE of the following measures the difference between a country’s exports and imports?
- A.
Gross National Product
- B.
Gross Domestic Product
- C.
Balance of Payments
- D.
Public Sector Net Cash Requirement
Correct Answer
C. Balance of PaymentsExplanation
The balance of payments is a summary of all the transactions between a country and the rest of the world and will measure the difference as a deficit or surplus. Gross National Product is the measure of a country’s output (Gross Domestic Product) plus net property income from abroad. Public Sector Net Cash Requirement is the difference between Government expenditure and Government income.Rate this question:
-
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
May 08, 2009Quiz Created by
Ojharahul
- Account Management Quizzes
- Classification Quizzes
- Conflict Management Quizzes
- Coordination Quizzes
- Data Management Quizzes
- Document Management System Quizzes
- ERP Quizzes
- Event Management Quizzes
- Integrated Solid Waste Management Quizzes
- Labor Management Quizzes
- Maintenance Management Quizzes
- Marketing Management Quizzes
- MIS Quizzes
- Operation Management Quizzes
- Planning Quizzes
- Principles Of Management Quizzes
- Principles Of Supervision Quizzes
- Process Management Quizzes
- Procurement Quizzes
- Product Management Quizzes
- Property Management Quizzes
- QMS Quizzes
- Quality Management Quizzes
- Resource Management Quizzes
- Responsibility Quizzes
- Scope Management Quizzes
- Security Management Quizzes
- Strategic Management Quizzes
- Supervisory Management Quizzes
Back to top