Money 101, Unit 6: Investing

Which of the following is true?

• Saving is simpler than Investing

• Investing is simpler than Saving

• Investing and Saving are the same

• You should not save or invest

Which compound interest account will grow the most over 30 years?

• 1.25% Annual Interest, no monthly contributions

• 7% Annual Interest, no monthly contributions

• 1.25% annual interest, $500 monthly contributions

• 7% annual interest, $500 monthly contributions

Which type of investment offers the potential for the highest returns?

• Savings

• Stocks

• Bonds

• None

When a company goes public so that stocks can be bought and sold, it is known as an (three letter abbreviation)

(a)  

As demand increases for a stock, what happens to the share price?

• It also increases

• It decreases

• Nothing happens

• It stays the same

As demand decreases for a stock, what happens to the share price?

• It increases

• It decreases

• Nothing

• It stays the same

Buying stock in a company gives you what?

• An executive role

• Full ownership

• Partial ownership

• Nothing

When looking at a big picture of the stock market, like on FinViz, which simple method of decoding information is true?

• Red is good; Green is also good

• Red is good; Green is bad

• Red is bad; Green is also bad

• Red is bad; Green is good

When you invest money in the stock market, what potential outcomes exist?

• You can only make money

• You can only lose money

• You can both make money and lose money

• You will always break even

Which type of investment carries the most risk?

• Savings

• Individual Stocks

• Bonds

• Index Funds