Search Header Logo

Financial Literacy - Investing Review

Authored by Julie Kramersmeier

Business

9th - 12th Grade

Used 2+ times

Financial Literacy - Investing Review
AI

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

    Content View

    Student View

8 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does investing in the stock market differ from putting money in a savings account at a bank?

Investing is always a less risky option than saving

Investing is best for short-term situations like emergency funds; saving is best for the long-term

Investing typically earns between 1-2% while saving generally earns between 5-7%

Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is compound interest more advantageous than simple interest?

Compound interest is harder to calculate, so those who use it earn higher profits for their efforts

Compound interest means you have a fund manager who is compounding your returns without charging a fee

Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned

Compound interest has lower fees than simple interest

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is a bond different from a stock?

A bond is a loan you give to an organization while a stock is partial ownership in the company.

Bonds are typically riskier than stocks but have the potential to earn higher returns.

A bond is usually issued by smaller, startup companies while stocks are with well established organizations.

Bonds are best for earning high returns while stocks are best for providing a stable source of income.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a brokerage account used for?

It’s an online portal that allows you to set up appointments with a fund manager.

It’s the account you use to pay any taxes you owe on money you earned in your investments.

It’s a type of account used to buy and sell stocks, bonds, and mutual funds.

It’s a special type of 401(k) plan that only some employers offer.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the benefit of investing in an Exchange Traded Fund (ETF)?

ETFs guarantee a higher return than mutual funds.

You have more control and flexibility because you can trade ETFs anytime while the market is open.

An ETF allows you to pick which stocks and bonds you want in the fund.

You can trade before the market closes for the day for a fee - usually 1%.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a financial advisor?

Someone who works at the stock market.

A trained professional that helps people make investing decisions.

Someone who invests in real estate.

A trained professional that sells antiques.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

You bought 10 shares of stock in StreamingVideoCo for $20 per share. Two months later you sold the 10 shares of stock for $40 per share. What was your profit or loss on StreamingVideoCo stock? Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.

Loss of $200

Gain of $200

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?