Financial Markets Basics

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Q. A car travels 120 miles in 2 hours. What is its average speed?
  • A. 50 mph
  • B. 60 mph
  • C. 70 mph
  • D. 80 mph
Q. A loan of $1,500 is taken at a compound interest rate of 6% per annum. What will be the amount after 2 years?
  • A. $1,686
  • B. $1,800
  • C. $1,900
  • D. $2,000
Q. A mutual fund has an annual return of 8%. If you invest $1,000, how much will you have after 3 years with compound interest?
  • A. $1,080
  • B. $1,259.71
  • C. $1,343.92
  • D. $1,500
Q. A trader bought 100 shares at $20 each and sold them at $25 each. What is the total profit?
  • A. $300
  • B. $400
  • C. $500
  • D. $600
Q. If a bank offers a simple interest rate of 5% per annum, how much interest will be earned on a principal of $2,000 after 4 years?
  • A. $200
  • B. $300
  • C. $400
  • D. $500
Q. If a company has a profit margin of 15% and its total sales are $50,000, what is the profit?
  • A. $5,000
  • B. $7,500
  • C. $10,000
  • D. $12,500
Q. If a person works 8 hours a day and completes a task in 5 days, what is the total work done in hours?
  • A. 30 hours
  • B. 35 hours
  • C. 40 hours
  • D. 45 hours
Q. If a stock price increases from $40 to $50, what is the percentage increase?
  • A. 20%
  • B. 25%
  • C. 30%
  • D. 35%
Q. If the ratio of investment between two partners is 3:2 and the total profit is $1,000, how much does the partner with the larger investment receive?
  • A. $400
  • B. $600
  • C. $700
  • D. $800
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