Invest

What is the primary purpose of investing?

• To save money for emergencies

• To earn a return on capital

• To avoid paying taxes

• To spend money on luxury items

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

• Savings account

• Credit card

• Mutual fund

• Checking account

What is a stock?

• A type of bond

• A share in the ownership of a company

• A government-issued currency

• A type of real estate

Which of the following is considered a low-risk investment?

• Stocks

• Bonds

• Cryptocurrency

• Venture capital

What does ROI stand for in investing?

• Return on Investment

• Rate of Interest

• Revenue on Income

• Risk of Investment

Which of the following best describes a bond?

• A loan made to a corporation or government

• A share in a company's profits

• A type of stock

• A real estate investment

What is diversification in investing?

• Investing in a single asset

• Spreading investments across various assets

• Investing all money in stocks

• Avoiding investments in foreign markets

Which of the following is a benefit of investing in mutual funds?

• Guaranteed returns

• Professional management

• No risk involved

• Tax-free income

What is the main difference between stocks and bonds?

• Stocks are debt, bonds are equity

• Stocks represent ownership, bonds are loans

• Stocks have fixed returns, bonds have variable returns

• Stocks are risk-free, bonds are risky

What is a dividend?

• A fee paid to a stockbroker

• A portion of a company's earnings distributed to shareholders

• A type of bond

• A tax on investment income