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Investing Review

Total questions: 20

Worksheet time: 9mins

Name
Class
Date
1.

What percent of American Families have less than $1,000 in the bank?

a)

30%

b)

50%

c)

65%

d)

70%

2.

According to the IRS, at what point in time does an investment become a 'long term' investment from a 'short term investment'

a)

6 Months

b)

1 Year

c)

2 Years

d)

5 Years

3.

When creating your budget, which of the following should come BEFORE investing? (select all that apply)

a)

Bruno Mars Ticket

b)

Paying Down BAD Debt

c)

Building Your Emergency Fund

d)

Sports Betting

e)

Traveling to the beach

4.

How much should one usually allocate for their emergency fund?

a)

$1,000

b)

One Paycheck

c)

Enough to live on for 1 month

d)

Enough to live on for about 3 months

5.

What is the average rate of inflation over the last century?

(a)  

6.

This is known by many to be the 8th wonder of the world. And Mr. Bell believes it to be the single most powerful tool to build wealth. (Think snowball)

(a)  

7.

What is the average rate of return of a savings account?

(a)  

8.

What is the average rate of return of the whole Stock Market (S&P 500, with dividends reinvested).

a)

12%

b)

6%

c)

3%

d)

19%

9.

If I keep my growing money in a savings account, it is sure to lose value due to (a)  

10.

What time and days are the stock market open?

a)

7 days a week

9:00am - 4:00pm

b)

Mon - Fri

9:00am - 4:00pm

c)

7 days a week

9:30am - 4:00pm

d)

Mon - Fri

9:30am - 4:00pm

11.

If you're my financial advisor, you would suggest that I am more _________ than my mother, who is 65 and on the brink of retirement. For her, you'd suggest that she is very _________.

a)

aggressive (4), moderate (3)

b)

aggressive (4) , conservative (1)

c)

conservative (3), very aggressive (5)

d)

moderate (3), conservative (1)

12.

What is a dividend?

a)

An annual percentage that a company pays to its shareholders

b)

DRIP

c)

Interest that builds on interest that builds on interest

d)

A dollar amount that a company pays to its shareholders every quarter

13.

What is a DRIP?

a)

A feature that allows you to buy partial shares of a company

b)

A feature that allows your dividends to automatically reinvested for you

c)

Mr. Bell's closet

d)

An exclusion to Capital Gains

14.

What is the most important variable when trying to take full advantage of the stock market and compound interest?

a)

Return Rate

b)

Time invested

c)

Choice of Stock

d)

Initial Principle

15.

Please select one of the following that best describes 'Capital Gains.'

a)

The amount of money that I sell a stock for

b)

How much I am taxed based on my income

c)

The difference between what I buy the stock for and how much I sell it for (the profit or loss)

d)

The time of how long I hold it for (short term vs. long term)

16.

What is an ETF?

a)


A bank account with a fixed interest rate

b)


C. A government-issued savings bond

c)


A type of investment that holds a collection of stocks sold under 1 ticker

d)

A. A single company’s stock that pays high dividends

17.

Which of these options related to ETFs is false?

a)

ETFs have small fees called Expense Ratios

b)

ETFs are more risky than buying traditional stocks

c)

ETFs are usually safer than buying traditional stocks

d)

ETFs allow me to instantly diversity my portfolio

18.

Which of the following companies don't fall under the Travel Industry

a)

$F

b)

$ABNB

c)

$WMT

d)

$LUV

19.

In what account should I keep my extra cash or emergency fund?

a)

Saving Account

b)

Investment Account

c)

Checking Account

d)

High Yield Savings Account

20.

Income from your investments, like dividends or capital gains, can be classified as which type of income?

a)

Passive

b)

Earned

c)

Portfolio