Finance Unbox-ED ($) - Grade 3-5 - Session 018 - Quiz 2

Select all the statements that are true about equity investments

• Investments in companies for which we get shares
• Sometimes also referred to as investment in stocks
• Equity investments make us part owners of the companies
• All of the above

Equity investments are considered low risk and high return investments

• True
• False

Risk in equity investments varies by the size of the company we invest in

• True
• False

Select all the statements that are true

• Unicorns are companies that have a valuation of USD 1 Billion
• Unicorns are companies that have a valuation of USD 10 Billion
• Decacorns are companies that have a valuation of USD 10 Billion
• Decacorns are companies that have a valuation of USD 100 Billion

Select all the statements that are true about debt investments

• Investment wherein we give or lend our money and earn interest
• Sometime are also called fixed income investments
• Sometime are also called bond investments
• All of the above

Debt investments are considered low risk and low return investments

• True
• False

Select the debt investment which is considered higher risk

• Governments Bonds
• Corporate Bonds

Select the debt investment which is expected to give higher interest or higher returns

• Fixed Deposits
• Corporate Bonds

Select all the statements that are true

• Risk in corporate bonds is gauged by their credit rating
• Credit rating is a rating that usually varies from AAA to D
• AAA is the lowest rating and denotes highest risk
• All of the above

Credit rating for companies is similar to credit score for individuals

• True
• False