NexGen Investors

1.What is the primary goal of investing?

• To spend money quickly

• To generate returns or income and grow your wealth over time

• To avoid financial risk

• To save money in a bank account

2. Which of the following is a benefit of starting to invest early?

• More time for investments to grow through compounding

• Guarantees high return in a short period of time

• Eliminates all risk associated with investing

• More debt accumulation

3. What is the investment objective of MRPS?

• To safeguard the real value of retirement savings while maximizing the contributions to the MRPS, with careful consideration of risk and to provide an expected income replacement of 50 percent.

• To maximize investment returns through high-risk, high-reward investments.

• To invest in short term instruments so that the funds will be accessible.

• To give members a quick way to earn money.

4. What does "compound interest" mean?

• Interest calculated only on the initial principal

• Interest that is added to the principal, allowing future interest to be earned on the total

• Interest that decreases over time

• Interest paid only once a year

5. Which of the following best describes a listed security?

• A financial instrument that is bought and sold on a recognized stock exchange

• A type of bond that is only available to institutional investors

• It is registered with the government but not traded

• Buying share by contacting the issuing company directly

Which investment option typically carries the highest risk?

• Savings accounts

• Corporate Bonds

• Stocks

• Government Securities

What is a key strategy for individuals to manage investment risk effectively?

• Investing all funds in a single high-risk high-return asset

•  Diversifying investments across different asset classes

•  Relying solely on popular trends for investment decisions

• Avoiding all forms of investment to eliminate risk

8. What role does financial literacy play in investing?

• It ensures that all investments will be profitable

•  It helps individuals make informed financial decisions

• It eliminates the need for any research before investing

• It guarantees that all investment risks are avoided

What does the term "liquidity" refer to in investing?

• The ability to earn dividends

• The ease of converting an asset into cash

• The volatility of an asset's price

• The risk associated with an investment

10. Which of the following best describes the risk tolerance typically associated with pension fund investments?

• High risk, high return

• Conservative risk profile, focusing on capital preservation

• Speculative investments in emerging markets

• No tolerance for any risk