Business Vocabulary Terms! Trivia Quiz

Currency refers to the type of money that is used in a specific country. It is the medium of exchange that is widely accepted within the country's borders. Currency can be in the form of coins or banknotes and is issued by the government or central bank. It is used for various transactions such as buying goods and services, paying taxes, and conducting business within the country. Currency also serves as a store of value and a unit of account, allowing people to measure the worth of different goods and services.

A budget is a plan that outlines how to allocate and spend a certain amount of money. It helps individuals or organizations manage their finances and make informed decisions about their expenses. A budget typically includes details about income, expenses, savings, and investments. It allows individuals or organizations to track their financial goals, prioritize spending, and ensure that they do not exceed their available funds. Therefore, the term "budget" is the most suitable explanation for the given question.

The term "quarter" refers to a period of three months. In this context, it could be related to various aspects such as financial planning, budgeting, or economic indicators like GDP. The word "fiscal" suggests that it is related to finances or financial year. Therefore, the correct answer "quarter" indicates that the given term is referring to a period of three months in the context of fiscal planning, budgeting, or economic analysis.

The given answer, "Discount," is the correct answer because the term "lower than the offer price" indicates a reduction in price, which is commonly referred to as a discount. A discount is a deduction or reduction in the original price of a product or service, usually offered to attract customers or increase sales. Therefore, the answer "Discount" aligns with the given information.

Currency refers to the money used in a country. It is the medium of exchange that is widely accepted within the country's borders. While a quarter is a specific denomination of currency, it does not encompass all forms of money used in a country. Budget refers to the financial plan of a government or organization, while GDP (Gross Domestic Product) is a measure of the economic activity within a country.

The term "net" refers to the price or amount of money after taxes and fees have been deducted. It represents the final amount that one receives or pays in a transaction, excluding any additional costs or charges. In financial terms, "net" is often used to indicate the actual profit or loss after all expenses have been accounted for.

The given terms "Currency," "Transaction," "Net," and "Break-even" are all related to the process of a sale. However, out of these terms, "Transaction" specifically refers to the actual exchange of goods, services, or money between a buyer and a seller. It involves the transfer of ownership and the completion of a financial transaction. Therefore, "Transaction" is the correct answer in this context.

Flash trading refers to the practice of using high-speed computers to analyze stock trades and execute them within milliseconds. This allows traders to gain an advantage by accessing market information before it becomes widely available. Flash trading is controversial because it can lead to unfair advantages for those with access to the fastest technology, potentially disadvantaging other market participants. The given answer correctly identifies flash trading as the explanation for using very fast computers to analyze stock trades.

After Facebook started selling its stock on the market, the price of each share dropped very quickly. This is because when a company sells its stock, it increases the supply of shares available in the market. As a result, the demand for each share decreases, causing the price to drop. This is a common market phenomenon known as a decrease in share price due to increased supply.

The term "break-even" refers to a point where the selling price of a product or service is equal to its cost price. In this context, it means that the selling price and the cost price are the same. This indicates that the business is neither making a profit nor incurring a loss. It implies that the revenue generated from sales is just enough to cover the costs incurred in producing the product or service.

A blue chip stock refers to ownership in a corporation that has a good reputation. Blue chip stocks are typically associated with well-established companies that have a history of stable earnings, strong financials, and a solid track record. These companies are often leaders in their respective industries and are considered to be reliable and trustworthy investments. Investors are attracted to blue chip stocks because they are perceived to be less risky and more likely to provide consistent returns over the long term.

A bear market refers to a general decrease in stock prices. It is a term used to describe a situation where the stock market experiences a prolonged period of decline, typically accompanied by investor pessimism and a lack of confidence in the market. During a bear market, stock prices tend to fall, and investors may sell off their stocks in anticipation of further declines. This can be caused by various factors such as economic downturns, political instability, or negative market sentiment.

The term "fiscal" refers to financial matters, specifically related to government revenue and expenditure, including taxes. In the context of the given question, which mentions money and taxes, "fiscal" is the most relevant term. The other options, such as "quarter," "budget," and "GDP," do not directly pertain to money or taxes.

Blue chip refers to the stock of a large and stable company. These companies are well-established, financially sound, and have a history of consistent performance. Investing in blue chip stocks is considered safe because they are less volatile and more likely to provide a steady return on investment. Therefore, the given answer correctly identifies blue chip as a safe investment option due to the stable nature of the company.

A bid refers to an offer made by an investor or broker to buy shares. It is the price at which a buyer is willing to purchase a particular security or stock. In the stock market, bids are displayed on the bid side of the order book and represent the highest price that a buyer is willing to pay for a stock. When a seller agrees to sell their shares at the bid price, a transaction takes place. Bids play a crucial role in determining the market price of a stock and are constantly changing based on supply and demand dynamics.

After Facebook started selling its stock on the market, the price of each share dropped very quickly. This is because when a company sells its stock, it increases the supply of shares available in the market. As a result, the demand for each individual share may decrease, causing the price to drop. In this case, the price of each share of Facebook stock dropped rapidly after it became available for sale to the public.

The given answer, "Profit, gain," is correct because when the selling price is higher than the cost price, it indicates that there is a profit or gain in the transaction. In other words, the seller is earning more money than what they initially invested in the product or service. This profit is the difference between the selling price and the cost price.

Flash trading refers to the practice of using high-speed computers to analyze stock trades and execute them within milliseconds. It involves the rapid buying and selling of securities to take advantage of small price discrepancies. This technique allows traders to gain an advantage over others by executing trades at lightning-fast speeds, potentially leading to higher profits.

A bull market refers to a period in the financial market where stock prices are steadily rising. This is usually accompanied by investor optimism, high trading volumes, and a general belief that the market will continue to rise. In a bull market, investors are more willing to take risks and buy stocks, which leads to an overall increase in stock prices. Therefore, the given answer, "Bull market," correctly explains the situation where stock prices are rising.

A bid is an offer made by an investor or a broker to buy shares. It represents the price at which the buyer is willing to purchase the shares. In the context of trading, a bid is the highest price that a buyer is willing to pay for a security. It is important because it determines the price at which a trade can be executed. When a seller agrees to sell their shares at the bid price, a transaction takes place.

A blue chip refers to the stock of a large and stable company. These companies are considered safe investments because they have a long-established reputation, stable earnings, and a history of paying dividends. Blue chip stocks are generally less volatile compared to other stocks, making them attractive to investors who prioritize stability and lower risk. Therefore, the given answer accurately describes a blue chip as a safe investment option due to the company's size and stability.

The term "To close at" refers to the specific price at which a trade ends at the end of the trading day. This means that it is the final price at which a particular security or asset is traded before the market closes. It is an important indicator for investors and traders as it reflects the final value of the asset for that day.

The term "Price / Worth" refers to the ratio between the price at which a product is sold and its actual worth or value. This ratio helps determine if the product is being sold at a fair price or if there is a profit or gain involved. It is a measure of how much the selling price deviates from the actual worth of the product.

The term "to trade at" refers to the specific price at which a share is bought or sold in the market. It indicates the price at which investors are willing to transact. This is an important aspect of trading as it helps determine the value of a stock and allows investors to make informed decisions.

Short selling is a strategy used by investors to profit from a stock that they believe will decrease in value. It involves borrowing shares of a stock from a broker and selling them in the market, with the intention of buying them back at a lower price in the future to return them to the broker. The investor makes a profit from the difference between the selling price and the lower buying price. This strategy allows investors to benefit from a declining market and is commonly used to speculate on stocks or hedge against potential losses.

The term "fiscal" is related to financial matters, particularly those concerning taxes and government revenue. It is often used in the context of the government's budget and economic policies. In this question, the mention of "quarter" suggests a specific period of time, possibly related to financial reporting. "Budget" is directly linked to fiscal matters as it involves the allocation of funds. Lastly, "GDP" (Gross Domestic Product) is a key economic indicator that reflects the overall financial health of a country. Therefore, the term "fiscal" encompasses all these aspects and is the most appropriate answer.

When a market is trending downward, it is referred to as a "bear" market. This term is used to describe a market where prices are falling or expected to fall, and investor sentiment is generally pessimistic. In a bear market, there is a lack of confidence and a tendency to sell assets, leading to further price declines. This is in contrast to a "bull" market, where prices are rising or expected to rise, and investor sentiment is generally optimistic. The term "bluechip" refers to large, well-established companies, and "volatile" describes a market with significant price fluctuations.