Finance and Investment Quiz

What is a money market security?

• Checking Accounts, CD’s, and Savings Accounts

• Stocks and Bonds

• Real Estate and Property

• Mutual Funds and ETFs

The well-being of a stock is dependent on how well the company is performing.

• True

• False

Jennifer bought 900 shares of stock for $45 a share in a company's initial public offering (IPO). What is her return in dollars if she sold her stock 2 weeks later for $66 a share?

• 45 x 900 = 40500

• 66 x 900 = 59400

• 59400 - 40500 = 18900

• 40500 - 59400 = -18900

T/F: The stock market offers insurance on investments.

• True

• False

What is the biggest risk on a bond?

• The market interest rates rise or the company enters bankruptcy

• The bond matures early

• The bond is sold at a premium

• The bond is tax-free

Which type of investment is the safest type of investment?

• Stocks

• Real estate

• Mutual funds

• Cryptocurrency

What are the advantages of mutual funds?

• High risk, high return

• Safe investment with minimal risk

• No professional management

• High buy-in cost

What determines the prices of houses in an area?

• Government policies

• Supply and demand

• Interest rates

• Construction costs

How does buying a home to live in personally contribute to your financial plan?

• You build equity, unlike with renting

• You pay more taxes

• You have less flexibility

• You incur more debt

How can you make money renting out real estate?

• By selling the property quickly

• By collecting rent that is more than your expenses on the property

• By living in the property

• By avoiding maintenance costs