Section 1: Multiple Choice Questions

What is the primary goal of investing?

• To save money

• To build long-term wealth

• To spend money

• To avoid taxes

What does 'diversification' in investing mean?

• Putting all money in one investment

• Investing in different types of assets

• Avoiding all investments

• Only investing in real estate

Which of the following is an example of a tangible asset?

• Stocks

• Bonds

• Real estate

• Mutual funds

What is the role of the ACCC in Australia?

• To regulate the stock market

• To protect consumers' rights

• To provide loans to businesses

• To insure deposits in banks

Which term describes the rise in general price levels over time?

• Deflation

• Inflation

• Stagnation

• Recession

What does 'liquidity' mean in financial terms?

• The ability to quickly convert assets to cash

• The value of an asset

• The return on investment

• The interest rate on a loan

Which factor is most likely to impact the demand for a product?

• The product's supply

• Consumers' income

• The cost of production

• The number of producers

What is the main benefit of having a diversified investment portfolio?

• Higher returns

• Lower risk

• Simplicity

• Tax benefits

What does 'ethical investing' focus on?

• Maximising profits

• Investing in socially responsible companies

• Avoiding all risky investments

• Investing in only local businesses

Which is the definition of a scam?

• A scheme that is deliberately dishonest

• Capturing a victim's card information

• An amount of money owed

• Having shares in a company.