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WorksheetsWeek 8 Quiz
Total questions: 20
Worksheet time: 10mins
A type of farmers market where people buy and sell food.
A place where shares of businesses are bought and sol
A special type of grocery store that sells stocks.
A type of bank that gives out loans to new businesses.
Diversification is good because:
It focuses investments on a single stock to take advantage of growth potential
Index funds have higher fees than individual stocks
Interest rates rise and fall
It insulates the risk of investment
Which of the following bonds has a lower risk: a corporate bond or a treasury bond?
Corporate Bond
Treasury Bond
Manny has recently inherited a large sum of money. He wants to invest this money but also wants to minimize his overall risk. Which investment strategy should he use that divides investment funds across a variety of assets?
Asset Allocation
Averaging Down
Diversification
Dollar Cost Averaging
This investment is similar to a mutual fund but can be traded via the stock market and can be bought and sold more than once per day.
Mutual Funds
ETFs
Index Funds
Bond Funds
This type of investment allows individuals to buy a share of an already created diversified collection of securities like stocks, bonds, and other assets. They can be actively or passively managed and can only be bought or sold once per day because they have to manually recalculate the value of each share.
Mutual Funds
ETFs
Stock
Bond Funds
Which of the investments loans money to governments and corporations?
Mutual Funds
ETFs
Index Funds
Bonds
This is the most generic of the passively ran mutual funds. The S&P 500 is an example of this type of fund.
Small Cap Emerging Markets Fund
ETFs
Index Funds
Large Cap Domestic Funds
A form of money that exists as encrypted, digital information. Operating independently of any banks and uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Bitcoin
Cryptocurrency
Decentralized Application
Circulating Supply
How does one acquire
bitcoins?
As payment for goods or
services.
Purchase bitcoins at a
Bitcoin exchange.
Exchange bitcoins with
someone near you.
Earn bitcoins through
competitive bitcoin mining.
all of the above
What is the technology allowing cryptocurrency transactions to be secured?
Cryptography
Blockchain
Cybersecurity
Banks
What is the coupon rate?
The interest rate that a bond issuer will pay to a bondholder.
The time at which payment to a bondholder is due.
The amount to be paid to the bondholder at maturity.
The total amount that the bond issuer has to pay each month
Which investment contains the MOST risk?
Mutual Funds/ETFs
Stocks
Bonds
Cryptocurrency
What is the rule of 72 used for?
Estimating the time it takes for an investment to triple in value
Estimating the time it takes for an investment to double in value.
Determining the present value of an investment
Calculating compound interest
