U3 Review day BW -Intro

What is the primary goal of investing?

• To spend money quickly

• To grow wealth over time

• To avoid paying taxes

• To keep money in a savings account

Which of the following is considered a low-risk investment?

• Stocks

• Bonds

• Real estate

• Cryptocurrency

What is a dividend?

• A fee paid to a broker

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

• The interest rate on a loan

• The price of a stock

What does the term "diversification" mean in investing?

• Investing all money in one stock

• Spreading investments across various assets to reduce risk

• Selling all investments at once

• Buying only foreign stocks

Which of the following is a characteristic of a stock?

• It represents a loan to a company

• It represents ownership in a company

• It is a fixed-income investment

• It is insured by the government

What is the formula for calculating the return on investment (ROI)?

What is a mutual fund?

• A type of savings account

• A collection of stocks and/or bonds managed by a professional

• A government bond

• A type of insurance policy

Which of the following best describes a "bull market"?

• A market where prices are falling

• A market where prices are rising

• A market with no price changes

• A market with high inflation