What is the British equivalent of the Dow Jones 30 Industrial Average?

Prepare for the FBLA Banking and Financial Systems Test with engaging content, hints, and explanations. Enhance your understanding and boost confidence for your exam!

The FTSE 100 is the correct answer because it represents the performance of the 100 largest companies listed on the London Stock Exchange, similar to how the Dow Jones Industrial Average (DJIA) reflects the performance of 30 significant publicly traded companies in the United States. Both indices serve as indicators of the overall health of their respective stock markets and economies.

The FTSE 100 includes companies that are considered to represent a broad section of the UK economy, much like how the Dow reflects major industries in the US. Investors and analysts often look at these indices to gauge market trends and investor sentiment.

The other options refer to different indices; for example, the NIKKEI 225 is the key index in Japan, representing 225 leading stocks on the Tokyo Stock Exchange, while the DAX 30 tracks the 30 major German companies. The FTSE 250 includes the next 250 largest companies on the London Stock Exchange but does not serve as the main benchmark like the FTSE 100 does. Therefore, the FTSE 100 stands out as the British counterpart to the Dow Jones 30 Industrial Average.

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