What Is The Basics Of Fundamental Analysis?

Gain a solid understanding of fundamental analysis in financial market trading. Learn to identify the intrinsic value of investment in this beginners' guide.

• Question 01

  What is the primary objective of fundamental analysis?

  Your Answer

  • A. Identifying short-term market trends

  • B. Evaluating the intrinsic value of financial assets

  • C. Predicting daily price fluctuations

  • D. Analyzing historical trading patterns

• Question 01

  Which type of analysis relies on expert judgment and subjective factors?

  Your Answer

  • A. Technical analysis

  • B. Qualitative analysis

  • C. Quantitative analysis

  • D. Statistical analysis

• Question 01

  Which financial ratio is commonly used to assess a company's profitability?

  Your Answer

  • A. Debt-to-equity ratio

  • B. Current ratio

  • C. Earnings per share (EPS)

  • D. Return on investment (ROI)

• Question 01

  Which economic indicator measures the rate of inflation?

  Your Answer

  • A. Gross Domestic Product (GDP)

  • B. Consumer Price Index (CPI)

  • C. Unemployment Rate

  • D. Industrial Production Index

• Question 01

  Which market is primarily concerned with evaluating central bank policies?

  Your Answer

  • A. Share market

  • B. Bonds market

  • C. Forex market

  • D. Commodities market

• Question 01

  What does the term "price-to-earnings (P/E) ratio" measure?

  Your Answer

  • A. Company's debt level

  • B. Stock market volatility

  • C. Relationship between a company's stock price and its earnings per share

  • D.Inflation rate

• Question 01

  What is a key aspect of fundamental analysis in the ETF market?

  Your Answer

  • A. Evaluating central bank policies

  • B. Analyzing weather conditions

  • C. Assessing the composition and weighting of underlying assets

  • D. Monitoring corporate earnings reports

• Question 01

  Which limitation of fundamental analysis is related to the subjective interpretation of data?

  Your Answer

  • A. Data reliability

  • B. Market efficiency

  • C. Manipulation of financial statements

  • D. Subjective judgment

• Question 01

  What does the term "SWOT analysis" stand for in fundamental analysis?

  Your Answer

  • A. Strengths, weaknesses, opportunities, and threats

  • B. Supply, weather, output, and trends

  • C. Shareholders, wages, output, and taxes

  • D. Sectors, wages, operations, and trends