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Investing 101 Quiz

Authored by Andrew Wehner

Business

12th Grade

Used 8+ times

Investing 101 Quiz
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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the definition of investing?

The act of lending money to a friend or family member.

The act of saving money in a bank account for future use.

The act of gambling with money or capital in the hopes of making a quick profit.

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important to invest?

To save money for retirement.

To make a quick profit through gambling.

To avoid paying taxes on income.

To support local businesses.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is compound interest?

Interest calculated on the total amount of money invested.

Interest calculated on the accumulated interest of previous periods.

Interest calculated only on the initial principal.

Interest calculated on the amount of money withdrawn from an investment.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for compound interest?

P/i*n

P*(1+i)^n

P/(1+i)^n

P[(1+i)^n]

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the advantage of starting to invest early?

It reduces the risk of losing money.

It eliminates the need for retirement savings.

It guarantees a higher return on investment.

It allows for more financial flexibility in the future.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is risk tolerance?

The measure of how much time an investor has to invest.

The measure of how much profit an investor expects to make.

The measure of how much money an investor is willing to invest.

The measure of how much risk an investor can handle.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main types of stock?

Domestic and International

Large and Small

Common and Preferred

Public and Private

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