Finance Vocabulary Quiz for Intermediate to Advanced Learners

This quiz is designed to help you improve your finance-related vocabulary by focusing on different aspects of word usage, meanings, and spelling. The quiz consists of five sections with 15 questions in total. Answer each question carefully, and at the end, you’ll receive a score along with feedback and advice based on your performance.

Section 1: Choose the Missing Word (5 questions)

Complete each sentence by choosing the correct word from the three options.

Question 1:

The company’s __________ statement provides a summary of its revenues and expenses.

• A) equity
• B) income
• C) dividend

Question 2:

To reduce risk, investors often __________ their portfolios by purchasing a variety of assets.

• A) diversify
• B) leverage
• C) hedge

Question 3:

The board decided to __________ capital by issuing new shares of stock.

• A) allocate
• B) raise
• C) depreciate

Question 4:

The firm’s __________ grew significantly as a result of increased borrowing.

• A) debt
• B) liquidity
• C) asset

Question 5:

The company plans to distribute __________ to its shareholders this quarter.

• A) dividends
• B) interests
• C) revenues

Section 2: What’s the Opposite? (3 mini quizzes)

Identify the opposite of the given word.

Mini Quiz 1:

The opposite of asset is:

• A) equity
• B) liability
• C) revenue

Mini Quiz 2:

The opposite of appreciation is:

• A) depreciation
• B) inflation
• C) investment

Mini Quiz 3:

The opposite of profit is:

• A) capital
• B) loss
• C) dividend

Section 3: Sound Similar (3 questions)

Complete the sentence by choosing the correct word. Be careful—some words sound alike!

Question 1:

The company’s long-term investments have shown a steady rate of __________.

• A) return
• B) retain
• C) retrain

Question 2:

The CFO will review the __________ statement at the end of the fiscal year.

• A) financial
• B) fiscal
• C) facility

Question 3:

He decided to __________ his stock options before the market changes.

• A) exercise
• B) exorcise
• C) excise

Section 4: Definitions (3 questions)

Choose the correct definition for each finance term.

Question 1:

What is capital gain?

• A) The profit made from selling an asset for more than its purchase price
• B) The amount of capital invested in a business
• C) The interest earned from a savings account

Question 2:

What does liquidity mean?

• A) The ease with which an asset can be converted into cash
• B) The total value of a company’s debt
• C) The ability of a company to generate profit

Question 3:

What is arbitrage?

• A) The practice of buying and selling securities in different markets to take advantage of price differences
• B) The process of estimating future revenue streams
• C) The reduction of asset value over time

Section 5: What’s the Spelling? (3 questions)

Identify the correctly spelled word.

Question 1:

Which word is spelled correctly?

• A) Amortisation
• B) Amortization
• C) Amourtization

Question 2:

Which word is spelled correctly?

• A) Collateral
• B) Colateral
• C) Colatteral

Question 3:

Which word is spelled correctly?

• A) Intrest
• B) Interst
• C) Interest

Answer Key and Explanations:

Section 1: Choose the Missing Word

1. B) income – An income statement shows a company’s revenues and expenses over a period.
2. A) diversify – Diversifying portfolios reduces risk by investing in various assets.
3. B) raise – Companies raise capital by issuing stock or borrowing funds.
4. A) debt – Debt refers to the money a company owes, often due to borrowing.
5. A) dividends – Dividends are payments made to shareholders, usually from profits.

Section 2: What’s the Opposite?

1. B) liability – The opposite of asset (something owned) is liability (something owed).
2. A) depreciation – The opposite of appreciation (increase in value) is depreciation (decrease in value).
3. B) loss – The opposite of profit is loss, indicating a negative financial outcome.

Section 3: Sound Similar

1. A) return – Return refers to the earnings from an investment, while retain means to keep something, and retrain refers to learning new skills.
2. A) financial – A financial statement reports on the financial position of a company, whereas fiscal refers to government or financial matters, and facility is a building or service.
3. A) exercise – To exercise stock options means to use the right to buy or sell shares.

Section 4: Definitions

1. A) The profit made from selling an asset for more than its purchase price – Capital gain is the profit from selling assets like stocks or property.
2. A) The ease with which an asset can be converted into cash – Liquidity measures how easily assets can be sold for cash.
3. A) The practice of buying and selling securities in different markets to take advantage of price differences – Arbitrage involves profiting from price differences in different markets.

Section 5: What’s the Spelling?

1. B) Amortization – Amortization refers to gradually paying off a debt over time.
2. A) Collateral – Collateral is something pledged as security for repayment of a loan.
3. C) Interest – Interest is the cost of borrowing money or the earnings from lending it.

Scoring and Feedback:

• 12-15 correct: Excellent! Your finance vocabulary is advanced, and you have a strong understanding of key financial concepts. Keep practicing to further refine your skills.
• 8-11 correct: Good! You have a solid grasp of financial terms, but there’s room to strengthen your understanding of certain definitions and word usages.
• 4-7 correct: Fair effort. You might want to focus on specific financial vocabulary, especially definitions and terms that are commonly used in financial discussions.
• 1-3 correct: It seems you’re struggling with basic financial terms. It’s a good idea to review common finance vocabulary, read financial news, and practice more to build a stronger foundation.

Keep practicing and reviewing these finance-related terms to improve your business English skills in the finance sector!