5/16 Bond Investment Quiz

What is a bond?

• A type of stock

• A loan made by an investor to a borrower

• A form of currency

• A government tax

Which of the following is a pro of investing in bonds?

• High risk

• Guaranteed high returns

• Steady income

• No market fluctuations

What is a con of investing in bonds?

• High liquidity

• Interest rate risk

• No risk of default

• Unlimited growth potential

Which factor can influence bond prices?

• Weather conditions

• Interest rates

• Brand popularity

• Political speeches

What is the difference between an individual bond and a bond fund?

• Individual bonds are riskier

• Bond funds are a collection of bonds

• Individual bonds have no maturity date

• Bond funds are issued by governments only

What is a bond fund fact sheet used for?

• To track stock prices

• To provide detailed information about a bond fund

• To calculate taxes

• To predict weather patterns

What is a bond in the context of investing?

• A type of stock

• A loan to a government or corporation

• A savings account

• A mutual fund

Which of the following is one of the most common investment options?

• Real estate

• Bonds

• Cryptocurrency

• Collectibles

The higher the risk associated with a bond, the ______ likely a corporation might default on paying the investor.

• less

• more

• equally

• not

Interest rates for riskier bonds tend to be ______ so that investors are ______ willing to take on that risk.

• lower, less

• higher, more

• higher, less

• lower, more