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Worksheets

Investing (B11)

Total questions: 42

Worksheet time: 21mins

Name
Class
Date
1.

It's always best to take big risks with your first investments.

a)

True

b)

False

2.

People who speculate when investing can lose a lot of money.

a)

True

b)

False

3.

Professional investment planners who are trained to give investment advice based on your personal finances and goals

a)

bankers

b)

brokers

c)

financial advisors

d)

fiduciary agents

4.

How are risk and return related?

a)

lower risk leads to higher returns

b)

higher risk leads to higher returns

c)

higher risk leads to lower returns

5.

If you aren't knowledgeable about investing and need advice about investment options, which type of broker should you use?

a)

discount broker

b)

full-service broker

6.

Collectible are which type of investment?

a)

low risk

b)

medium risk

c)

high risk

7.

Penny stocks are which type of investment?

a)

low risk

b)

medium risk

c)

high risk

8.

Corporate bonds are which type of investment?

a)

low risk

b)

medium risk

c)

high risk

9.

Real estate is which type of investment?

a)

low risk

b)

medium risk

c)

high risk

10.

US savings bonds are which type of investment?

a)

low risk

b)

medium risk

c)

high risk

11.

Which is NOT a stage of investing?

a)

strategic investing

b)

special investing

c)

initial investing

d)

put and take account

12.

What is the first stage of investing?

a)

speculative investing

b)

put and take account

c)

initial investing

d)

systematic investing

13.

What is the last stage of investing?

a)

special investing

b)

strategic investing

c)

speculative investing

d)

systematic investing

14.

Why do people invest?

a)

to beat inflation

b)

to increase wealth

c)

because it's fun and challenging

d)

All answers are correct.

15.

Mutual finds are what type of investment?

a)

low risk

b)

medium risk

c)

high risk

16.

The use of long-term savings to earn a financial return

a)

diversifying

b)

investing

c)

speculating

d)

banking

17.

You should always make investment decisions quickly to take advantage of the market.

a)

True

b)

False

18.

An annuity is what type of investment?

a)

low risk

b)

medium risk

c)

high risk

19.

Treasury securities are what type of risk?

a)

low risk

b)

medium risk

c)

high risk

20.

A quick way to evaluate an investment's rate of return

a)

Rule of 52

b)

Rule of 60

c)

Rule of 62

d)

Rule Rule of 72

21.

A collection of investments

a)

portfolio

b)

annual report

c)

transcript

d)

chart of accounts

22.

Debt obligations of corporations or governments

a)

stocks

b)

bonds

c)

annuities

d)

real estate

23.

Expected return is the only factor to consider when making investments.

a)

True

b)

False

24.

The spreading of risk among many types of investments

a)

liquidity

b)

safety of principal

c)

diversification

d)

speculation

25.

Which type of investment pools the money of many investors to buy a large selection of securities?

a)

stocks

b)

bonds

c)

mutual funds

d)

Treasury securities

26.

A summary of a corporation's financial results for the year and future prospects

a)

portfolio

b)

investor newsletter

c)

balance sheet

d)

annual report

27.

Low-priced stock of small companies that have no track record

a)

junk bonds

b)

penny stock

c)

corporate bonds

d)

junk stock

28.

Investments with shorter terms (maturity dates) tned to pay higher returns.

a)

True

b)

False

29.

Which type of Treasury security has the longest range of maturity dates?

a)

Treasury Bills

b)

Treasury Notes

c)

Treasury Bonds

30.

If you invest in a corporate bond, you will earn more money in years when the corporation has higher profits.

a)

True

b)

False

31.

When you purchase stock, you own part of the company.

a)

True

b)

False

32.

Which type of investment pays dividends?

a)

corporate bonds

b)

stock

c)

real estate

d)

US savings bonds

33.

Which is NOT a type of US savings bond?

a)

series EE bonds

b)

series HH bonds

c)

series P bonds

d)

series I bonds

34.

Before you start investing, how many months of income should you have in your savings account?

a)

1-2 months

b)

3-6 months

c)

9-12 month

d)

12-18 month

35.

In the first stage of investing, the main concern should be safety.

a)

True

b)

False

36.

The money that you earn on an investment

a)

windfall

b)

risk

c)

return

d)

refund

37.

A one-time investment that you make with your tax return money would fall into what stage of investing?

a)

initial investing

b)

systematic investing

c)

strategic investing

d)

speculative investing

38.

Investing on a regular and planned basis to create a financially secure future begins in which stage of investing?

a)

initial investing

b)

systematic investing

c)

strategic investing

d)

speculative investing

39.

What is a benefit of investing in a mutual fund?

a)

professional management

b)

diversification

c)

Both answers are correct.

d)

Neither answer is correct.

40.

Who might sell a municipal bond?

a)

Amazon

b)

US government

c)

Delta Airlines

d)

City of St. Marys

41.

Who sells annuities?

a)

insurance companies

b)

banks

c)

US government

d)

local governments

42.

Real estate is one of the most liquid types of investments.

a)

True

b)

False