Finance Unbox-ED ($) - Grade 6-8 - Session 028 - Assessment 8

Select the statement that is true

• ROI - Inflation = Real Rate of Return
• IRR - Inflation = Real Rate of Return
• Both of the above
• None of the above

Select the statement that is true

• Real rate of return can be positive or negative
• Negative real rate of return means your money is losing in value every year
• Both of the above
• None of the above

IRR on our investment should be lower than inflation for us to get positive real rate rate of return

• True
• False

MOIC stands for?

• Money on Invested Capital
• Multiple on Internal Capital
• Money on Internal Capital
• Multiple on Invested Capital

Rahul invested $500 in shares of ABC Inc. and sold them after three years for $700

• Rahul made a MOIC of 0.4x
• Rahul made a MOIC of 1.4x
• Rahul made a MOIC of 2.4x
• None of the above

Power of compounding can be understood using simple interest

• True
• False

Compound interest means we reinvest our interest and earn interest on interest

• True
• False

Compound interest can create significant wealth for us in a short period of time

• True
• False

Compound interest is an example of instant gratification

• True
• False

Select the famous scientist who said "Compound interest is the most powerful force in the universe"

• Thomas Edison
• Isaac Newton
• Albert Einstein
• Stephen Hawking