3.1 to 3.6

What is a passive investor?

• Someone who frequently trades stocks

• Someone who rarely buys individual investments

• Someone who invests only in real estate

• Someone who manages their own investments daily

What is a bond fund?

• A single bond investment

• A pool of money collected from multiple investors to purchase bonds

• A type of stock market index

• A savings account with a fixed interest rate

What does a bond provide to the lender?

• Ownership in a company

• Regular interest payments

• A fixed stock price

• A guaranteed profit

What is the role of an investment manager in passive investing?

• To actively trade stocks daily

• To manage individual investments frequently

• To hold investments over a long period

• To avoid all investments

What is a bull market?

• A declining market

• A stable market

• A rising market

• A stagnant market

What is a bear market?

• A rising market

• A stable market

• A declining market

• A stagnant market

What does a stock provide?

• Guaranteed returns

• Ownership with higher risk

• Fixed interest

• No ownership

How is market cap measured?

• Price times volume

• Price times shares

• Price times interest

• Price times dividends

What does a bull market indicate about the economy?

• The economy is declining

• The economy is stable

• The economy is booming

• The economy is stagnant

What does a bear market indicate about the economy?

• The economy is booming

• The economy is stable

• The economy is declining

• The economy is stagnant