Types of Investments

Which of the following is an example of a stock?

• A) A savings account

• B) A share of Apple Inc.

• C) A loan to a friend

• D) A dollar bill

What does it mean to buy a bond?

• A) You're buying part of a company

• B) You’re lending money to a company or government

• C) You're opening a savings account

• D) You're buying insurance

What is a mutual fund?

• A) A savings account at the bank

• B) A collection of different investments managed by a professional

• C) A loan you give to a friend

• D) A type of insurance

Which investment usually has the highest risk?

• Savings account

• Certificate of Deposit (CD)

• Stock in a new tech company

• Government bond

Which of the following is a low-risk investment? A) Stock in a start-up B) Bitcoin C) U.S. Treasury bond D) Real estate in a risky market

• Stock in a start-up

• Bitcoin

• U.S. Treasury bond

• Real estate in a risky market

What is real estate investing?

• A) Buying stocks in a bank

• B) Putting money in a savings account

• C) Buying property to make money from it

• D) Borrowing money to buy clothes

What is an ETF (Exchange-Traded Fund)?

• A savings account with a fixed interest rate

• A single company’s stock

• A group of investments you can buy like a stock

• A type of insurance plan

How does compound interest help your money grow?

• You only earn interest on your first deposit

• You earn interest on your deposit and on the interest it already earned

• You pay interest to the bank

• It makes your money disappear

Cryptocurrency is considered:

• A) A government bond

• B) A very stable investment

• C) A digital form of money that is very risky

• D) A kind of insurance

Which of the following is NOT a type of investment?

• A) Stocks

• B) Bonds

• C) Checking account

• D) Mutual fund