Investing Basics Quiz

What is the purpose of investing for most people?

• To beat inflation

• To make a career out of it

• To make a little extra money on the side

• To bulk up savings for retirement

What is the average annual impact of inflation on money's value?

• 1%

• 2%

• 4%

• 3%

What are securities?

• Stock exchanges

• Retirement funds

• Financial instruments

• Investment accounts

What are stocks?

• Bonds

• Mutual funds

• Debt securities

• Equity in a company

Where are stocks traded?

• Government institutions

• Banks

• Exchanges

• Investment firms

What are bonds?

• Mutual funds

• Loans you make

• Stocks in a company

• Retirement funds

What does diversification mean?

• Investing in high-risk assets

• Spreading your money out among different investments

• Investing in low-risk assets

• Putting all your money in one investment

What does ROI stand for?

• Return on Investment

• Rate of Inflation

• Rate of Interest

• Risk of Investment

What are the fees associated with investing?

• No fees

• Both A and B

• Percentage of portfolio

• Flat fee

What are mutual funds?

• Government bonds

• Individual stocks

• Groups of securities

• Retirement accounts