Investment Instruments Quiz

When you purchase stock, what do you own?

• A piece of art

• A piece of the company

• A piece of real estate

• A piece of jewelry

What are bonds?

• Loans that investors make to corporations or governments

• Stocks issued by companies

• Insurance policies

• Savings accounts

What do mutual funds do with everyone's money?

• Keep it in separate accounts

• Pool it together to create greater buying power

• Donate it to charity

• Invest it in a single stock

What is the purpose of target date funds?

• Invest in high-risk stocks

• Provide short-term loans to individuals

• Professionally manage the portfolio with adjusted risk as retirement date nears

• Invest in real estate

What do options give an investor the right to do?

• Buy securities at a fixed date

• Sell securities at a fixed date

• Hold securities indefinitely

• Exchange securities for cash

Which of the following is one of the largest securities exchanges in the world?

• BSE

• NYSE

• LSE

• TSE

What is the first step toward successful investing?

• Following others blindly

• Investing without any knowledge

• Ignoring investment options

• Becoming educated about investing options

What do hedge funds use high-risk investment strategies for?

• Enhancing returns

• Minimizing returns

• Guaranteeing returns

• Avoiding returns

What is the financial market for short-term borrowing and lending?

• Commodity market

• Money market

• Stock market

• Real estate market

Where does investing in T-bills happen?

• Money market

• Stock market

• Real estate market

• Commodity market