Chapter 2 Quiz

The money you originally invest is called your...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

The possibility of losing money on an investment is called...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

The expectation of gain or growth of your investment is called...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

Income received from loans or other debt investments is called...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

Another term for money or assets...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

A rise in the general level of prices...

• Risk

• Return

• Interest

• Capital

• Principal

• Inflation

TRUE OR FALSE: Stock price increases are always predictable.

• True

• False

TRUE OR FALSE: Stockholders receive a fixed rate of interest from the businesses they invest in.

• True

• False

TRUE OR FALSE: Shares in private corporations are not sold on the market.

• True

• False

TRUE OR FALSE: In general, buying stocks is riskier than buying bonds.

• True

• False