Investment & Inflation Quiz

The process of putting/allocating money into assets w/ the expectation of generating an income or profit.

• Risk

• Investment

• Return

The general rate at which the prices of goods and services increases.

• Inflation

• Investment

• Interest Rate

A type of measuring inflation where it measures the prices that households buy.

• Core Inflation Index

• Producer Price Index

• Consumer Price Index

A piece of paper containing the cost of investing and the kind of return to be expected in the future.

• Securities

• Asset

• Returns

It happens when the overall demand in the economy exceeds overall supply.

• Cost-Push

• Demand-Pull

• Rate Fluctuations

A collection of diversified assets is called what?

• Diversification

• Individual Asset

• Portfolio

One of the effects of inflation where it can disproportionately affect low-income households.

• Redistribution of Wealth

• Decreased Purchasing Power

• Wage Pressure

A type of risk that is inherent to the entire market or market segment is called:

• Diversifiable Risk

• Unsystematic Risk

• Systematic Risk

One way to manage inflation is by reducing budget deficits and controlling government spending. This is called as:

• Adjustment of Monetary Policies

• Amendment of Fiscal Policies

• Public Awareness Campaigns

The tendency of investors to prefer safe, low-risk investments over uncertain ones, even if it means lower returns.

• Risk Aversion

• Risk Tolerance

• Risk Premium