Investment Concepts Quiz

What does ROI stand for in investing?

• Rate of Interest

• Return on Investment

• Revenue on Investment

• Risk of Investment

Which of the following is NOT a type of investment income?

• Interest

• Dividends

• Salary

• Capital gains

What is a benefit of understanding types of investment income?

• To improve cooking skills

• To enhance financial decision-making

• To travel more

• To learn a new language

What is a common feature of debt investments?

• Ownership of a company

• Fixed interest payments

• High risk

• No returns

What is the definition of Return on Investment (ROI)?

• A measure of the total revenue of a company

• A performance measure used to evaluate the efficiency of an investment

• A method to calculate taxes

• A way to determine employee productivity

Which of the following is a common type of equity investment?

• Stocks

• Savings accounts

• Certificates of deposit

• Treasury bonds

What is a potential benefit of equity investments?

• Guaranteed returns

• High returns but higher risk

• No risk involved

• Fixed interest rates

What is a Certificate of Deposit (CD)?

• A type of debt investment

• A type of equity investment

• A real estate investment

• A commodity investment

What is a Treasury bill?

• A short-term debt investment

• A long-term equity investment

• A real estate investment

• A commodity investment

Which of the following is a source of interest income?

• Real estate

• Savings accounts

• Stock dividends

• Lottery winnings