STOCK MARKET

Q1 If an investment is registered with Securities and Exchange Commission, you cannot lose money.

• 1.    TRUE

• 1.    FALSE

Price is what you pay. Value is what you get

• 1.    TRUE

• 1.    FALSE

It is the money gained

• Expenditure

• Income

• Gain

• loss

It is the money that you spend on your needs and wants.

• Income

• Expenditure

• loss

It Q5 It is a record   of your income and expenditure.

• CashFlow statement

• Balance sheet

• Income Satement

• expenditure statement

Q6: Lucas hears about an investment opportunity on the radio that promises a guaranteed 25% annual investment return every year for the next 5 years. How should Lucas react?

• 1.    Immediately invest

• 1.    only invest if it is an opportunity in cutting edge technology

• 1.    ignore the opportunity

Beginning to save while you are young is recommended by financial experts because

• 1.    you can log in higher interest rates when you buy on credit

• 1.    the younger years tends to be the highest earning years of one’s life

• 1.    next money saved early in life can increase through compounding over a long period of time

Q8: In general, investments that are riskier tend to provide higher returns over time than investments with less risk.

• 1.    TRUE

• 1.    FALSE

Q9: Hugo started an investment account. If the account earns an average annual investment return of 7 percent, Hugo’s initial investment will double in approximately

• 1.    7 years, assuming no additional contributions

• 1.    10 years assuming no additional contributions

• 1.    14 years assuming additional contributions of 10% of the principal each year

Q10: An index fund is a type of mutual fund or exchange-traded fund that seeks to track the returns of a market index. What is the main advantage that index funds have when compared to actively managed funds?

• 1.    Index funds are generally less risky in the short term

• 1.    index funds generally have lower fees and expenses

• 1.    index funds often guarantee a specific rate of return