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Investments 101

Total questions: 28

Worksheet time: 18mins

Name
Class
Date
1.

Shares of ownership in a corporation are called:

a)

bond

b)

future

c)

mutual fund

d)

stock

2.

How does the stock market impact the U.S. economy?

a)

Individuals invest in the stock market because they don't trust banks.

b)

Individuals invest in the stock market to earn money for the future.

c)

Individuals invest in the stock market because interest rates are high.

d)

Individuals invest in the stock market to save money for clothing.

3.

Stock prices are going up in a:

a)

Bear Market

b)

Bull Market

c)

Peak Market

d)

Soft Market

4.

Stock prices are going down in a:

a)

Bear market

b)

Bull market

c)

Peak market

d)

Soft market

5.

How does a bear market impact the U.S. economy?

a)

Business sales will increase rapidly.

b)

Businesses will be able to hire more workers.

c)

Consumers will be able to spend more money.

d)

Consumers will spend less money and save more.

6.

How does a bear stock market impact the U.S. economy?

a)

Americans will invest more money in the stock market.

b)

Americans will save more money in the bank and spend less.

c)

Consumers will purchase more large appliances and cars.

d)

Consumers will purchase more primary and vacation homes.

7.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
8.
What is an IPO?
a)
Initial Polling Office
b)
Initial Public Offering
c)
International Public Office
d)
Increasing Public Opportunity
9.
The chance of loss.
a)
Stock
b)
Reward
c)
Risk
d)
Real Estate
10.

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

11.

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

a)

Bond

b)

Mutual Fund

c)

Annuity

d)

Stock

12.
If you save money you will earn extra money from the bank called
a)
Investment
b)
Interest
c)
Inheritance
d)
Incompetence
13.
Investments are:
a)
Short term
b)
Long term
14.

Bella kept $500 in a savings account for 1 year. At the end of the year she had $525. The extra $25 is _____.

a)

budget

b)

withdrawal

c)

interest

d)

passbook

15.

What is Snap Chat's ticker symbol?

a)

SNPCHT

b)

SNP

c)

CHAT

d)

SNAP

16.

What is Apple's ticker symbol?

a)

APLE

b)

AAPL

c)

APLE

d)

APQ

17.

What company has the ticker symbol DIS?

a)

DEX Stock Industries

b)

Diagnostic Industries & Subsidiaries

c)

Disney

d)

Delek US Holdings

18.

Where are all of the major stock exchanges in the US located?

a)

Chicago, IL

b)

New York City, NY

c)

Tallahassee, FL

d)

San Francisco, CA

19.
What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A special type of grocery store that sells stocks.
d)
A type of bank that gives out loans to new businesses.
20.
Why would a company need to issue stock?  
a)
To increase its' customer base.
b)
To raise money.
c)
To stop the government from regulating it.
d)
To show customers that it's successful.
21.
Apple is releasing a new iPhone that is predicted to change the cell phone world.  Millions of people have pre-ordered it.  What do you think will happen to their stock?
a)
It is likely to go up.
b)
It is likely to go down.
22.
You have $250 that you are willing to invest in Apple's stock.  If Apple's stock is selling for $113.05 a share, how many shares could you buy?
a)
1
b)
2
c)
3
d)
4
23.

How does one make money in the stock market?

a)

Selling shares of stock more than what you originally paid for.

b)

Buy shares of stock from multiple companies.

c)

Buy ONE share of stock from a big company like Amazon.

d)

There is no risk and no changes, so you make money regardless!

24.

Which of the following is NOT a corporation that sells shares of stocks?

a)

McDonalds

b)

Starbucks

c)

Taco Bell

d)

Dairy King

25.

What is demand mean in the stock market?

a)

the desire to own something and the ability to pay for it

b)

Portion of income not spent on consumption

c)

The process of setting money aside to increase wealth over time for long-term financial goals

d)

interest paid on the principal alone.

26.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
27.
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.
28.

What is a SAVINGS account?

a)

An account used to manage money coming in and going out.

b)

A safe place to put your money if you are saving for something in the future

c)

A type of current account for those studying at college or university