Which UK index consists of the 100 largest companies by market capitalization?

• A. S&P 500
• B. FTSE 100
• C. CAC 40
• D. Nikkei 225

Answer: (B)

This question tests your knowledge of which index tracks the largest UK-listed firms by market value. The FTSE 100 is the index that comprises the 100 largest UK companies by market capitalization, listed on the London Stock Exchange, and it’s weighted by free float. It’s widely used as a barometer of the UK stock market and economy. The other options come from different countries or have different numbers of constituents: the S&P 500 covers 500 US companies, the CAC 40 covers major French firms, and the Nikkei 225 covers major Japanese firms. So the description matches the FTSE 100.