(6) What is the definition of “Diversification” in finance?
- (a) The process of focusing all investments in a single asset.
- (b) Spreading investments across different assets to reduce risk.
- (c) The practice of trading stocks on a daily basis.
- (d) The calculation of a company’s net worth.
(7) What does the term “Elasticity of Demand” measure in economics?
- (a) The responsiveness of quantity demanded to changes in price.
- (b) The total revenue generated by a business.
- (c) The market share of a company.
- (d) The level of government regulation in an industry.
(8) What does the term “Monopoly” refer to in economics?
- (a) A market structure where a single firm dominates and controls the entire industry.
- (b) A form of currency used in ancient civilizations.
- (c) The act of importing goods from foreign countries.
- (d) The process of merging two or more companies.
(9) What is the definition of “Amortization” in finance?
- (a) The process of gradually paying off a debt through scheduled, periodic payments.
- (b) The act of investing in stocks for the long term.
- (c) The calculation of a company’s net income.
- (d) The practice of borrowing money to finance short-term expenses.
(10) What does “Market Capitalization” measure in finance?
- (a) The total value of a publicly traded company’s outstanding shares of stock.
- (b) The profit margin of a company.
- (c) The number of employees in a company.
- (d) The amount of debt a company owes.
