Money Matters Spring Exam

What is the main difference between stocks and bonds?

• Stocks represent ownership in a company, while bonds represent debt.

• Stocks guarantee fixed returns, while bonds offer variable returns.

• Stocks offer higher returns with lower risk, while bonds offer lower returns with higher risk.

• Stocks are only available to institutional investors, while bonds are available to individual investors.

What does the term "dividend" refer to?

• The price paid for purchasing a stock

• The profit made from selling a stock

• A portion of a company's earnings distributed to its shareholders

• The interest paid to bondholders

Who facilitates the buying and selling of stocks on behalf of investors?

• Bankers

• Stockbrokers

• Accountants

• Economists

What does "ROI" stand for in investing?

• Return On Investment

• Rate of Inflation

• Risk of Investment

• Revenue of Interest

What is the primary goal of asset allocation in investment?

• To minimize taxes

• To maximize returns

• To reduce risk

• To increase inflation

Which technology underlies cryptocurrencies like Bitcoin?

• Artificial Intelligence

• Blockchain

• Quantum Computing

• Neural Networks

Which of the following is a popular cryptocurrency other than Bitcoin?

• Ethereum

• Ripple

• Litecoin

• All of the above

What is the process called where new bitcoins are created and transactions are confirmed?

• Verification

• Authentication

• Mining

• Minting

What is the primary advantage of using cryptocurrencies for transactions?

• High transaction fees

• Irreversible transactions

• Centralized control

• Anonymity and security

Inflation is best defined as:

• A rise in the price of a single item

• A decrease in the overall price level of goods and services

• An increase in the overall price level of goods and services

• A stable price level over time