WorksheetsInvesting Lesson 1-3 Intro
Total questions: 27
Worksheet time: 14mins
Name
Class
Date
1.
You have $100 in your savings for one year & a interest rate of 6%. How much $ will you earn?
a)
$5
b)
$4
c)
$6
d)
$2
2.
At a compound interest rate of 5% how many years will it take to double your money?
a)
4.4 years
b)
14.4 years
c)
7.0 years
d)
10.0 years
3.
What are 3 criteria most often used by investors to judge personal investments?
a)
Buying, spending, selling
b)
Liquidity, Return, Selling
c)
Return, Risking, Selling
d)
Liquidity, Risk, Return
4.
Which of the following is an example of investing?
a)
Putting money into a piggy bank at home
b)
Saving spare change and using it to buy snacks
c)
Buying a U.S savings bond
d)
Buying groceries for the family
5.
What is the difference between Economic Investing (EC) and Personal Investment (PI)?
a)
There is no difference
b)
Economic Investment involves risk
c)
Economic Investment involves technology/ PI involves stocks
d)
Personal Investment involves risk
6.
Which of the following is not an investment?
a)
Buying 100 shares of Microsoft Inc.
b)
Buying a Microsoft bond, which promises to pay back the $
c)
Buying a bond issued by the government of Mexico
d)
Buying a hamburger for lunch
7.
What are the two ways to pay interest?
a)
Compound/ Complex
b)
Simple/ Complex
c)
Compound/ Investing
d)
Simple/ Compound
8.
Formula for Simple Interest?
a)
Interest= Principal x Rate x Time
b)
Interest=Rate x Time divided by Principal
c)
Interest= Principal x Rate divided by Time
d)
Interest= Principal x Time divided by Rate
9.
What term is used when referring to when compound interest doubles? Formula?
a)
Rule of 78 (72 divided by rate=# of years for $ to double)
b)
Rule of 86 (86 divided by rate=# of years for $ to double)
c)
Rule of 72 (72 divided by rate=# of years for $ to double)
d)
300 divided by rate=# of years for $ to double
10.
2 main types of Investing?
a)
Personal/ Educational
b)
Educational/ Economic
c)
Personal/ Economic
d)
Economic/ Global
11.
What is human capital?
a)
Knowledge, skills, health, and values individuals possess
b)
Knowing how to do something
c)
Being smart
d)
Helping the environment with something
12.
Which is not an investment in improving ones human capital?
a)
Practicing a Sport
b)
Watching Netflix
c)
Going to school
d)
Eating healthy
13.
What is opportunity cost?
a)
Someone's last choice
b)
Someone's first choice
c)
What you choose to buy
d)
Next best alternative that one gives up when making a choice
14.
Which of the following is an example of human capital?
a)
Money
b)
A hammer
c)
Stocks
d)
The ability to read
15.
Tom practices piano for an hour everyday. Playing video games instead would be his:
a)
Income
b)
Opportunity Cost
c)
Favorite thing to do
d)
Investment in Human Capital
16.
Payments people receive for selling or renting their productive resources:
a)
Cost
b)
Income
c)
Investment
d)
Human Capital
17.
All of the following are investments in human capital except:
a)
Finishing High School
b)
Attending a trade School
c)
Practicing to improve a skill
d)
Buying a new phone
18.
What is a major difference between a stock and bond?
a)
A bond is ownership in a company, stock is a loan
b)
A bond can always be resold for its face value
c)
Stock is ownership in a company, a bond is a loan
d)
A stock can always be resold for its face value
19.
How does a firm become a corporation?
a)
With an IPO (Initial Public Offering)
b)
With an LPO (Last Public Offering)
c)
By having someone help you corporate it
d)
Selling it
20.
What is the risk of buying stock?
a)
Having to give your money to other people
b)
Making gains! "Gee-gee"
c)
Loosing all your money
d)
Having to sell it
21.
Which is a risk of buying bonds?
a)
Stocks are way more safe, you shouldn't buy bonds
b)
You might earn less than people who buy stocks
c)
They aren't risky at all
22.
Which is not an advantage of buying bonds?
a)
Less risky than stocks
b)
Stocks are more risky
c)
They have fairly predictable returns
d)
They are more risky than stocks
23.
If you invest in stock, you should know about the company. Which of these wouldn't matter?
a)
Stock price trend
b)
When the stock started
c)
What is happening in the stock industry
d)
What company makes
24.
What does it mean to "pay yourself first"?
a)
Buying everything you buy for yourself
b)
Saving 50% of each paycheck
c)
Not helping others
d)
Making saving a priority
25.
Which of the following is the best definition of saving?
a)
The discount received from buying something on sale
b)
Disposable income minus consumption spending
c)
Putting your money under your mattress
d)
The interest paid on a savings account
26.
Which of the following is a reason to save?
a)
Interest
b)
Penalty for taking your savings out of the bank
c)
Not being able to buy something right now
d)
Having to go to the bank before making a purchase
27.
How does a Personal Investment differ from Educational Investment?
a)
Personal Investment involves risk
b)
Personal investments can be easily turned to cash
c)
Costs must be paid in the present for Personal Investment
d)
Investors receive returns in future for Personal Investment
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