Finance Unbox-ED (INR) - Grade 6-8 - Session 023 - Quiz 1

Select all the statements that are true about equity investments

• Investments in shares of a company
• Investors make returns via capital gains and dividends
• Considered a low risk and high return investment
• All of the above

Risk in investments in companies varies by the size of the company

• True
• False

Select all the statements that are true

• Unicorns are companies that have a valuation of USD 1 Billion
• Unicorns are companies that have a valuation of USD 10 Billion
• Decacorns are companies that have a valuation of USD 10 Billion
• Decacorns are companies that have a valuation of USD 100 Billion

Select all the statements that are true about debt investments

• Investment wherein we give or lend our money and earn interest
• Sometime are also called fixed income investments
• Sometime are also called bond investments
• All of the above

Select all the example of debt investments

• Governments Bonds
• Rental Income
• Fixed Deposits
• Corporate Bonds

Capital gains or losses are never possible in government bonds and corporate bonds

• True
• False

Debt investments are considered low risk and low return

• True
• False

Select all the statements that are true

• Risk in corporate bonds is gauged by their credit rating
• Credit rating is a rating that usually varies from AAA to D
• AAA is the lowest rating and denotes highest risk
• All of the above

Credit rating for companies is similar to credit score for individuals

• True
• False

Select all the reasons why investment in the corporate bond of a company considered less risky than investment in the shares of the same company

• Corporate bonds have a fixed return unlike shares whose prices go up and down
• In case a company goes bankrupt the corporate bondholders get paid before shareholders
• Government steps in and pays corporate bondholders if the company cannot pay them
• All of the above