Investment Quiz

A tool to measure the efficiency of an investment.

• JSE
• Liquidity
• ROI
• Equity

When an investor is prepared to accept medium risk, capital growth with some monthly income, investing in equities and interest bearing investments plus is a ….. Strategy.

• Growth
• Decline
• Balanced
• Defensive

A notice deposit opened at a bank for a predetermined period of time at a set interest rate

• Fixed deposit
• Savings account
• Money market
• Unit trust

A … is a letter of credit that Sasol Ltd sells in order to raise borrowed capital.

• fixed deposit
• share
• debenture
• mortgage bond

Another name for shares.

• Units
• Equities
• Dividends
• Coins

A …. Debenture is repayable on a predetermined date.

• Redeemable
• Non-redeemable
• Bond
• Mortgage

The usual period of an endowment investment is …

• 1-5 years
• 1-2 years
• 5-10 years

The higher the risk associated with an investment, the ..... the return that the investor will expect on the investment.

• higher
• lower

A shareholder that invests in BP shares …

• will receive interest as a return on the investment.
• pays a capital gains tax when shares are bought.
• could have capital growth and good dividends over the long-term.
• will earn a high return on the investment as they are risk free in the short-term.

An investment in unit trusts …

• offers a good monthly income during a period of economic recession.
• usually keeps up with the rate of inflation.
• requires the owner to pay interest to the investment house.
• must be bought and sold via insurance brokers.