Finance MCQ & Objective Questions
Understanding finance is crucial for students preparing for school and competitive exams. Mastering finance concepts not only enhances your knowledge but also boosts your confidence in tackling exam questions. Practicing MCQs and objective questions related to finance helps you identify important questions and reinforces your exam preparation strategy.
What You Will Practise Here
Basic concepts of finance and its significance in daily life
Key financial terms and definitions
Understanding financial statements and their components
Fundamental principles of investment and risk management
Calculating interest rates, loans, and returns on investments
Budgeting and financial planning techniques
Analysis of market trends and economic indicators
Exam Relevance
Finance is a vital topic in various examinations, including CBSE, State Boards, NEET, and JEE. Students can expect questions that assess their understanding of financial concepts, calculations, and applications. Common question patterns include multiple-choice questions that require you to apply theoretical knowledge to practical scenarios, making it essential to practice finance MCQ questions regularly.
Common Mistakes Students Make
Confusing terms like 'interest' and 'principal' when solving problems
Misunderstanding the difference between fixed and variable costs
Overlooking the importance of financial ratios in analysis
Failing to apply formulas correctly in calculation-based questions
FAQs
Question: What are some important finance questions for exams?Answer: Important finance questions often include topics like calculating interest, understanding financial statements, and analyzing investment risks.
Question: How can I improve my finance exam scores?Answer: Regular practice of finance objective questions with answers and focusing on conceptual clarity can significantly improve your exam scores.
Start your journey towards mastering finance today! Solve practice MCQs to test your understanding and enhance your exam readiness. Your success in finance awaits!
Q. In 2022, which country experienced a historic currency collapse, with its currency losing over 90% of its value?
A.
Venezuela
B.
Turkey
C.
Argentina
D.
Sri Lanka
Show solution
Solution
Sri Lanka experienced a historic currency collapse in 2022, with the Sri Lankan rupee losing over 90% of its value.
Correct Answer:
D
— Sri Lanka
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Q. In 2022, which country faced a severe economic crisis leading to protests and a change in government?
A.
Sri Lanka
B.
Argentina
C.
Greece
D.
Venezuela
Show solution
Solution
Sri Lanka faced a severe economic crisis in 2022, leading to widespread protests and the resignation of its president.
Correct Answer:
A
— Sri Lanka
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Q. In 2022, which country faced a severe economic crisis leading to protests and government instability?
A.
Sri Lanka
B.
Argentina
C.
Greece
D.
Venezuela
Show solution
Solution
Sri Lanka faced a severe economic crisis in 2022, leading to widespread protests and government instability.
Correct Answer:
A
— Sri Lanka
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Q. In 2022, which country launched a digital currency called the 'e-krona'?
A.
Sweden
B.
China
C.
Canada
D.
Australia
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Solution
Sweden began trials for its digital currency, the 'e-krona', in 2022.
Correct Answer:
A
— Sweden
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Q. In 2022, which major financial institution announced plans to cut jobs due to economic uncertainty?
A.
Goldman Sachs
B.
JP Morgan
C.
Morgan Stanley
D.
Citigroup
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Solution
Goldman Sachs announced plans to cut jobs in early 2022 as part of cost-cutting measures amid economic uncertainty.
Correct Answer:
A
— Goldman Sachs
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Q. In 2022, which major financial institution announced plans to cut thousands of jobs amid economic uncertainty?
A.
Goldman Sachs
B.
JP Morgan Chase
C.
Citigroup
D.
Bank of America
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Solution
Goldman Sachs announced plans to cut around 3,200 jobs in early 2023 due to economic challenges.
Correct Answer:
A
— Goldman Sachs
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Q. In 2023, which country faced a severe banking crisis leading to the collapse of several banks?
A.
United States
B.
Germany
C.
Switzerland
D.
Italy
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Solution
The United States faced a banking crisis in 2023, leading to the collapse of several banks, including Silicon Valley Bank.
Correct Answer:
A
— United States
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Q. In 2023, which cryptocurrency exchange filed for bankruptcy, marking a significant event in the crypto market?
A.
Binance
B.
Coinbase
C.
FTX
D.
Kraken
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Solution
FTX filed for bankruptcy in November 2022, which had a major impact on the cryptocurrency market.
Correct Answer:
C
— FTX
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Q. In 2023, which cryptocurrency exchange filed for bankruptcy, marking one of the largest collapses in the crypto industry?
A.
Binance
B.
Coinbase
C.
FTX
D.
Kraken
Show solution
Solution
FTX filed for bankruptcy in November 2022, leading to significant turmoil in the cryptocurrency market.
Correct Answer:
C
— FTX
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Q. What cryptocurrency reached an all-time high of over $60,000 in late 2021?
A.
Ethereum
B.
Bitcoin
C.
Litecoin
D.
Ripple
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Solution
Bitcoin reached an all-time high of over $60,000 in late 2021.
Correct Answer:
B
— Bitcoin
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Q. What was the main focus of the COP26 climate conference held in 2021 regarding finance?
A.
Debt relief for developing countries
B.
Green finance initiatives
C.
Tax reforms
D.
Cryptocurrency regulations
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Solution
COP26 emphasized green finance initiatives to support sustainable development and combat climate change.
Correct Answer:
B
— Green finance initiatives
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Q. What was the primary focus of the COP26 climate conference held in 2021 regarding finance?
A.
Debt relief for developing countries
B.
Green finance initiatives
C.
Tax reforms
D.
Cryptocurrency regulations
Show solution
Solution
COP26 emphasized the need for green finance initiatives to support climate action and sustainable development.
Correct Answer:
B
— Green finance initiatives
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Q. What was the primary focus of the COP26 climate conference held in 2021?
A.
Global warming
B.
Biodiversity
C.
Ocean pollution
D.
Deforestation
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Solution
The primary focus of the COP26 climate conference held in 2021 was to address global warming and climate change.
Correct Answer:
A
— Global warming
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Q. What was the primary reason for the global stock market decline in early 2022?
A.
COVID-19 resurgence
B.
Russia-Ukraine conflict
C.
US-China trade tensions
D.
Interest rate hikes
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Solution
The Russia-Ukraine conflict that began in February 2022 led to significant uncertainty and decline in global stock markets.
Correct Answer:
B
— Russia-Ukraine conflict
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Q. What was the primary reason for the global supply chain crisis that peaked in 2021?
A.
Natural disasters
B.
COVID-19 pandemic
C.
Trade wars
D.
Labor strikes
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Solution
The COVID-19 pandemic was the primary reason for the global supply chain crisis that peaked in 2021.
Correct Answer:
B
— COVID-19 pandemic
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Q. Which country announced a $1.9 trillion economic stimulus package in early 2021?
A.
United States
B.
Germany
C.
Japan
D.
United Kingdom
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Solution
The United States announced a $1.9 trillion economic stimulus package in March 2021.
Correct Answer:
A
— United States
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Q. Which country announced a significant increase in its interest rates in 2022 to combat inflation?
A.
United States
B.
Turkey
C.
Brazil
D.
India
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Solution
The United States Federal Reserve raised interest rates multiple times in 2022 to address rising inflation.
Correct Answer:
A
— United States
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Q. Which country became the first to adopt Bitcoin as legal tender in 2021?
A.
El Salvador
B.
Japan
C.
Switzerland
D.
United States
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Solution
El Salvador became the first country to adopt Bitcoin as legal tender in September 2021.
Correct Answer:
A
— El Salvador
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Q. Which country introduced a digital currency called the 'e-krona' in 2022 as part of its central bank digital currency initiative?
A.
Sweden
B.
China
C.
Canada
D.
Australia
Show solution
Solution
Sweden's central bank, the Riksbank, has been exploring the e-krona as a digital currency since 2022.
Correct Answer:
A
— Sweden
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Q. Which country launched a digital currency pilot program in 2022, aiming to modernize its financial system?
A.
China
B.
Sweden
C.
United States
D.
India
Show solution
Solution
Sweden launched a pilot program for its digital currency, the e-krona, in 2022 to explore modernizing its financial system.
Correct Answer:
B
— Sweden
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Q. Which country launched a digital currency pilot program in 2022?
A.
China
B.
United States
C.
India
D.
Russia
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Solution
China launched a digital currency pilot program in 2022 as part of its efforts to promote the digital yuan.
Correct Answer:
A
— China
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Q. Which financial technology company went public through a SPAC merger in 2021, becoming one of the largest fintech IPOs?
A.
Robinhood
B.
SoFi
C.
Plaid
D.
Chime
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Solution
SoFi went public through a SPAC merger in 2021, marking one of the largest fintech IPOs at that time.
Correct Answer:
B
— SoFi
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Q. Which financial technology company went public through a SPAC merger in 2021?
A.
Robinhood
B.
Stripe
C.
SoFi
D.
Square
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Solution
SoFi went public through a SPAC merger in 2021.
Correct Answer:
C
— SoFi
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Q. Which major financial institution was fined $2.3 billion in 2022 for its role in the Libor scandal?
A.
Deutsche Bank
B.
Barclays
C.
Wells Fargo
D.
HSBC
Show solution
Solution
Deutsche Bank was fined $2.3 billion in 2022 for its involvement in the Libor scandal.
Correct Answer:
A
— Deutsche Bank
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Q. Which major tech company announced a $10 billion investment in artificial intelligence in 2023?
A.
Microsoft
B.
Google
C.
Apple
D.
Amazon
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Solution
Microsoft announced a $10 billion investment in artificial intelligence in early 2023.
Correct Answer:
A
— Microsoft
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Q. Which major tech company announced its entry into the financial services sector by launching a buy now, pay later service in 2021?
A.
Apple
B.
Amazon
C.
Google
D.
Facebook
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Solution
Apple announced its buy now, pay later service in 2021, marking its entry into the financial services sector.
Correct Answer:
A
— Apple
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Q. Which organization projected a global economic growth rate of 2.9% for 2023?
A.
World Bank
B.
International Monetary Fund
C.
OECD
D.
Asian Development Bank
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Solution
The International Monetary Fund (IMF) projected a global economic growth rate of 2.9% for 2023.
Correct Answer:
B
— International Monetary Fund
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