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Worksheets

Quick Test

Total questions: 18

Worksheet time: 10mins

Name
Class
Date
1.

In the accelerator model of investment, when there is no change in output then investment is

a)

zero

b)

positive

c)

negative

d)

one

2.
Why is compound interest more advantageous than simple interest?
a)
It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
b)
Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
c)
Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
d)
In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.
3.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
4.
Why do companies issue stocks?
a)
To create and investment opportunity into other businesses.
b)
To increase employee cooperation 
c)
To be traded individually
d)
To raise money for economic investment
5.
The chance of loss.
a)
Stock
b)
Reward
c)
Risk
d)
Real Estate
6.
Justin wants to go to spend a month traveling Europe next summer but doesn’t have the money to do so. He’s thinking of investing the $700 he currently has saved in stock in his favorite restaurant in hopes of earning the money for the vacation. Why shouldn’t he do that?
a)
Investing in one company’s stock is quite risky.
b)
Investing your whole savings in the stock market is a bad financial move.
c)
One year probably isn’t enough time for one stock to turn $700 into a month’s vacation.
d)
All of the above
7.

The "rate of return" is

a)

The rate of how long you have to hold an investment

b)

The rate that you have to pay to buy an investment

c)

The percentage of increase or decrease expressed by percentage of the investment's cost

d)

The interest rate earned

8.

A long term investment vehicle often issued by insurance companies that guarantee a base rate of return while guaranteeing the principal:

a)

Mutual Fund

b)

Stock

c)

Fixed Annuity

d)

Cryptocurrency

9.

A single share of ownership of a legally formed company is called a:

a)

Bond

b)

Mutual Fund

c)

Annuity

d)

Stock

10.

The best chance of a gain in a portfolio is:

a)

a diversified approach over an extended period of time

b)

luck

c)

trading as Warren Buffet does

d)

investing in the same way that your parents/grandparent did

11.

An investment is:

a)

A contract between you and your bank for a checking account

b)

The outlay of funds for income or profit

c)

Only something that can be done through your 401K

d)

never a risk

12.

True or False: It is appropriate for someone who is contributing funds close to their retirement age to invest aggressively.

a)

True

b)

False

13.

What are securities

a)

Rights to assets

b)

Shares

c)

Bonds

14.

How many order types are there

a)

1

b)

4

c)

3

d)

2

15.

Which is not an order type

a)

Good till day order

b)

Good till date order

c)

Good till cancelled order

d)

Good till time order

16.

What it the purpose of a limit order

a)

Maximize profit

b)

Minimize profit

c)

Maximize loss

d)

Minimize profit

17.

What is the purpose of a stop order

a)

minimize loss

b)

maximize profit

c)

maximize loss

d)

minimise profit

18.

Risk and Return positively correlate

a)

True

b)

False