Investment 101 Quiz

Investments are often thought of in terms of money, but you can also invest other resources, like time and labor (like a business might do).

• True

• False

Investing has the potential to help build wealth more effectively than saving alone.

• True

• False

What are the three steps that you need to do before investing?

• Set your goals

• Open a savings account

• Pay off high-interest debt

• Create an emergency fund

An emergency fund should cover ___ months of rent and living expenses.

• 1 to 2

• 3 to 5

• 3 to 6

• 3 to 4

Horizon risk is the risk of being unable to sell your investment at a fair price and get your money out when you want to.

• True

• False

These are assets that are physical goods like gold, oil, beef, and orange juice.

• Stocks

• Commodities

• Bonds

• Cryptocurrencies

Choose the non-financial asset.

• Treasury Bond

• Memorabilia

• Alt Coins

• Stocks

_____ are an important part of the global economy, allowing companies to raise money for the operation of their businesses by selling shares (or pieces of ownership) to the public.

What does NYSE mean?

This is the type of stock that gives you voting rights.

• Preferred Stock

• Common Stock