TH » Test: What is a Stock Market Index?

Test: What is a Stock Market Index?

Question 01: What do stock market indices represent?

a) The average price of stocks from a group of companies

b) The average number of employees in a company

c) The average value of a company

d) The average value of an economic sector

Question 02: How are indices usually calculated?

a) Based on market capitalization

b) Based on the stock price

c) Based on the average cost

Question 03: On what basis are companies usually grouped in indices?

a) Geographical location, such as the USA or Germany

b) Industrial sectors, such as car manufacturing or mining companies

c) CEO age, for example, companies with senior or young leaders

Question 04: What can be classified as a protected business sector?

a) Utility companies

b) Car manufacturers

c) Weapon manufacturers

d) Government enterprises

Question 05: Which index consists of French companies?

a) CAC 40

b) FTSE 100

c) DAX 30

d) Les Postillons

Question 06: Which index consists of German companies?

a) CAC 40

b) FTSE 100

c) DAX 30

d) Das Leben ist kein Ponyhof

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