Investment and Speculation Quiz

What is the primary aim of investment?

• To gamble on market fluctuations

• To achieve additional income or growth in value

• To avoid any financial risk

• To achieve immediate profit

Which of the following is considered a financial investment?

• Stocks or shares in a company

• Gold

• Precious stones

• Real estate

What is the time horizon for typical investments?

• Only short-term

• Less than 1 month

• 1 to 12 months

• More than 12 months

Which of the following best describes speculation?

• Long-term investment strategy

• Investing in government bonds

• Guaranteed returns over time

• High-risk, high-gain investments

What is the main difference between investment and gambling?

• Investment is based on tips and rumors

• Gambling involves careful planning and evaluation

• Investment focuses on safety and long-term commitment

• Gambling guarantees a return on investment

What does arbitrage involve?

• Pooling resources for large ventures

• Simultaneous purchase of the same security in different markets

• Investing in high-risk assets

• Long-term holding of assets

Which principle guided ethical investment practices in ancient Indian trade?

• Maximizing profit at all costs

• Dharma (righteousness)

• Avoiding all forms of risk

• Speculation for quick gains

What is a characteristic of real assets?

• They include shares and bonds

• They are financial claims represented by securities

• They are intangible

• They are used for production of goods and services

What is one objective of investment?

• To avoid any financial commitments

• To ensure immediate liquidity

• To gamble on market trends

• To achieve a good rate of return in the future

What is a common risk associated with investing in stocks?

• Liquidity risk

• Market risk

• Credit risk

• Inflation risk