Welcome to your Jargon Buster Quiz. This is a formative learning exercise to ensure you have the foundations to complete JT+ Good luck and do your best! Feel free to use your Jargon Buster Handbook to help you answer the questions. Name Email 1. A forward exchange rate is: Central bank rate An exchange rate agreed today for future delivery Inflation adjusted rate Today’s spot rate None 2. A SPAC is sometimes described as: A government agency A type of bond A tracker fund A blank cheque company None 3. A closed ended fund is typically structured as: ETF Unit Trust OEIC Investment Trust None 4. A SICAV is: Corporate bond European open ended investment vehicle Government regulator Closed ended trust None 5. An instrument issued at a discount and redeemed at par without paying coupons is: Zero Coupon Bond Preference Share Convertible Bond Floating Rate Note None 6. The Consumer Prices Index measures: Corporate profits Share price growth Inflation Exchange rates None 7. Stamp Duty Land Tax applies primarily to: Property purchases Bond redemptions Share purchases Dividend payments None 8. A dematerialised security is: Electronic holding Paper certificate Convertible share Government bond None 9. Private Markets primarily involve investments that are: Guaranteed by governments Limited to property Traded daily on stock exchanges Not traded on public stock exchanges None 10. A smart contract is: A type of insurance policy A blockchain based contract that can execute automatically A legal contract signed by a lawyer A government regulation None 11. A stablecoin aims to: Track stock market performance Eliminate inflation Deliver high investment returns Maintain a relatively stable value None 12. A company gains control of another company when it acquires more than what percentage of voting shares? 50 percent of shares 25 percent of shares 100 percent of shares 75 percent of shares None 13. A redemption date refers to: Tax deadline Bond maturity date Dividend payment day IPO launch None 14. A bond that can be converted into company shares is: Preference Share Irredeemable Gilt Convertible Bond Floating Rate Note None 15. A Floating Rate Note (FRN) typically has its interest payments linked to: SONIA Dividend yield Market Capitalisation GDP None 16. A Green Bond is primarily issued to finance: Executive bonuses Defence spending Share buybacks Environmentally beneficial projects None 17. Passive management aims to: Outperform the market Avoid equities Replicate a benchmark index Time the market None 18. The Financial Conduct Authority primarily regulates: Monetary policy Prudential capital requirements Market conduct and consumer protection Taxation None 19. The balance sheet shows: Company profits only Share price movements Assets, liabilities and equity Dividend history None 20. A REIT primarily invests in: Derivatives Government debt Commodities Commercial property None 21. Credit risk refers to: Market volatility Interest rate changes Liquidity shortage Borrower failing to repay None 22. A gilt edged security is: Corporate bond UK government bond Preference share ETF None 23. A call option gives the holder the right to: Receive dividends Buy an asset Sell an asset Redeem bonds None 24. The Debt Management Office issues: Options Gilts Shares Corporate bonds None 25. Monetary policy primarily involves: Tax increases Company regulation Government spending Interest rate setting None 26. Diversification primarily aims to: Increase leverage Increase volatility Reduce risk Maximise tax None 27. Fiscal policy refers to: Interest rate decisions IPO pricing Taxation and government spending Bond yields None 28. A privately negotiated derivative contract that is not standardised is most likely: Forward Tracker Fund Future ETF None 29. Algorithmic trading refers to: Using computer programs to execute trades automatically Manual trading on a stock exchange floor Long-term investing only Trading government bonds only None 30. An underlying asset is: A bond coupon A government policy The asset from which a derivative derives value A tax wrapper None 31. A Venture Capital Trust (VCT) primarily invests in: Smaller growing companies Large multinational companies Government bonds Commodities only None 32. An incentive often associated with investing in a VCT is: Guaranteed capital Tax relief Zero risk Fixed dividends None 33. Liquidity risk refers to: Inflation Borrower default Difficulty selling at a fair price Falling dividends None 34. Impact Investing seeks to generate: Only social benefits Guaranteed returns Only financial returns Financial returns and measurable positive impact None 35. A company unable to pay debts as they fall due is: Insolvent Leveraged Illiquid Diversified None 36. A Sovereign Wealth Fund is owned by: A stock exchange A commercial bank A government A pension provider None 37. An ISA provides: Tax efficient wrapper for investments Guaranteed return Corporate bond insurance Government pension None 38. Protectionism refers to: Reducing interest rates Restricting international trade Encouraging free trade Increasing dividends None 39. A tracker fund aims to: Outperform the market Avoid equities Invest only in bonds Mirror an index None 40. The difference between nominal value and market price is that nominal value: Equals dividend Includes accrued interest Is face value repaid at maturity Fluctuates daily None 1 out of 1 Thanks for completing the quiz. You will receive your result soon.
