Intro to Investing Review

What is investing primarily about?

• Allocating money to generate future returns

• Saving money under your mattress

• Spending money on luxury items

• Borrowing money from banks

Which of the following is NOT a type of investment?

• Stocks

• Bonds

• Real estate

• Lottery tickets

What is the main function of the stock market?

• To regulate national interest rates

• To enable buying and selling of stocks

• To provide loans to individuals

• To facilitate the exchange of goods

What are bonds?

• Fixed-income securities

• A type of stock

• A form of insurance policy

• Cryptocurrencies

What does compound interest calculate interest on?

• Initial principal only

• Accumulated interest only

• Future value of investments

• Initial principal and accumulated interest

How is percent change calculated?

• Average of two values as a percentage of the original value

• Difference between two values as a percentage of the new value

• Sum of two values as a percentage of the original value

• Difference between two values as a percentage of the original value

What does the range in a set of data represent?

• The average value

• The difference between the highest and lowest values

• The total sum

• The median value

What is ROI a measure of?

• The riskiness of an investment

• The total debt of a company

• The interest rate on a loan

• The profitability relative to its cost

Which of the following factors influences stock prices?

• Political elections

• Company performance

• Weather conditions

• Celebrity endorsements

What is the importance of diversification in an investment portfolio?

• To increase the total investment

• To ensure a fixed interest rate

• To reduce risk

• To focus on a single industry