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WorksheetsInvestment and Finance Quiz
Total questions: 43
Worksheet time: 32mins
What is Asset Allocation?
A) A tax levied on profit from the sale of property or an investment
B) Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash
C) Profit from the sale of an asset, such as a stock or a bond
D) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What defines an Asset Class?
A) A market in which prices are falling, encouraging selling
B) A measurement of the likelihood that a bondholder will be paid back
C) A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace
D) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is a Bear Market?
A) A market in which there is increased stock trading and rising stock prices
B) A security in which the investor loans money to a company or government
C) A market in which prices are falling, encouraging selling
D) Profit from the sale of an asset, such as a stock or a bond
What is a Bond?
A) A measurement of the likelihood that a bondholder will be paid back
B) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
C) A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date
D) A tax levied on profit from the sale of property or an investment
What does Bond Rating measure?
A) The increase in stock trading and rising stock prices
B) The profit from the sale of an asset, such as a stock or a bond
C) The likelihood that a bondholder will be paid back
D) The division of an investment portfolio among different asset categories
What is a Brokerage Account?
A) A market in which prices are falling, encouraging selling
B) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
C) A security in which the investor loans money to a company or government
D) A tax levied on profit from the sale of property or an investment
What characterizes a Bull Market?
A) A market in which prices are falling, encouraging selling
B) A market in which there is increased stock trading and rising stock prices
C) A measurement of the likelihood that a bondholder will be paid back
D) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is Capital Gain?
A) A tax levied on profit from the sale of property or an investment
B) The division of an investment portfolio among different asset categories
C) Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for
D) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is Capital Gains Tax?
A) A tax levied on profit from the sale of property or an investment
B) The division of an investment portfolio among different asset categories
C) Profit from the sale of an asset, such as a stock or a bond
D) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is Compound Interest?
A) A market in which prices are falling, encouraging selling
B) An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
C) A security in which the investor loans money to a company or government
D) Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan
What is the term for the annual interest payment on a bond, usually expressed as a percentage of its face value?
Dividend
Coupon
Dollar Cost Averaging
Diversification
What is Diversification in the context of investing?
The rate at which the price of goods increases
The practice of investing in a large variety of stocks, bonds, and/or funds to reduce overall risk
Money from the profits of a company paid out to shareholders
A collection of stocks and/or bonds that are traded on securities exchanges
What is a Dividend?
An investing tool for individuals to earmark funds specifically for their retirement
The practice of putting a fixed amount into an investment over a period of time
Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis
The annual interest payment on a bond
What does Dollar Cost Averaging refer to?
The practice of putting a fixed amount into an investment over a period of time, regardless of the price of that investment
The annual interest payment on a bond
A low-fee portfolio of stocks chosen to track or mimic a stock market index
The rate at which the price of goods increases
What is an Exchange-Traded Fund (ETF)?
A low-fee portfolio of stocks chosen to track or mimic a stock market index
An investing tool for individuals to earmark funds specifically for their retirement
The rate at which the price of goods increases and consumer purchasing power decreases over time
A collection of stocks and/or bonds that are traded on securities exchanges, unlike mutual funds, they can be traded throughout the day like an individual stock
What is an Index Fund?
The practice of investing in a large variety of stocks, bonds, and/or funds to reduce overall risk
A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing
Money from the profits of a company that is paid out to its shareholders
An investing tool for individuals to earmark funds specifically for their retirement
What is an Individual Retirement Account (IRA)?
The practice of putting a fixed amount into an investment over a period of time
The annual interest payment on a bond
An investing tool for individuals to earmark funds specifically for their retirement
A collection of stocks and/or bonds that are traded on securities exchanges
What is Inflation?
A low-fee portfolio of stocks chosen to track or mimic a stock market index
The practice of investing in a large variety of stocks, bonds, and/or funds to reduce overall risk
The rate at which the price of goods increases and consumer purchasing power decreases over time
Money from the profits of a company that is paid out to its shareholders
What is Insider Trading?
The process of setting money aside to increase wealth over time
The illegal act of trading a company's stock using information that is not available to the public
A collection of stocks and/or bonds combined into one fund
An application that allows users to regularly save small sums of money
What is the goal of Investing?
To regularly save small sums of money
To trade a company's stock using insider information
To increase wealth over time for long-term financial goals such as retirement
To pay for public works to benefit its citizens
How is Market Capitalization calculated?
By adding the total number of shares outstanding
By multiplying the current share price by the number of shares outstanding
By multiplying the current share price by the company's annual revenue
By the total number of shares traded on the stock exchange
What is a Micro-Investing Platform?
A platform for trading company stocks
A bond issued by state or local government
A collection of stocks and/or bonds traded as a unit
An application that allows users to regularly save small sums of money
What is a Municipal Bond?
A bond with tax advantages for individual investors, issued by a corporation
An application that allows users to invest in the stock market
A bond, often having tax advantages for individual investors, issued by a state or local government
The world's largest stock exchange
What is a Mutual Fund?
An illegal act of trading a company's stock
A bond issued by the federal government
A collection of stocks and/or bonds combined into one fund
The second largest stock exchange in the world
Which is the second largest stock exchange in the world?
New York Stock Exchange (NYSE)
Nasdaq
Micro-Investing Platform
Municipal Bond
Where is the New York Stock Exchange (NYSE) located?
In Washington D.C.
In Los Angeles
In New York City
In Chicago
What does the Nominal Rate of Return not account for?
Investment risk
Inflation and taxes
Portfolio diversity
Stock market trends
What is a Pension?
A long-term savings plan
A financial investment strategy
A retirement account with a fixed payout at retirement
A type of mutual fund
Which of the following is included in a Portfolio?
Real estate only
Stocks, bonds, and mutual funds only
Stocks, bonds, commodities, cash, and cash equivalents
Insurance policies
What is the Rate Of Return also known as?
Rate of Interest
Return on Investment (ROI)
Annual Percentage Rate (APR)
Dividend Yield
What does the Real Rate Of Return account for that the Nominal Rate of Return does not?
Market volatility
Inflation and taxes
Investment duration
Economic growth
What does Risk in investment terms refer to?
The potential for loss of time
The degree of uncertainty in investment's performance
The guaranteed return on an investment
The cost of an investment
What is a Robo-Advisor?
A financial planning software
An automated investment management service
A human financial planner
A type of security
What is a Roth IRA designed for?
Trading stocks
Saving after-tax income for retirement
Short-term investments
Buying securities
What is a Security in financial terms?
A guarantee of payment
A type of insurance policy
A financial asset that can be traded
A savings account
What is the S&P 500?
A stock market index representing 500 small cap companies
A federal program providing benefits to Americans
A stock market index representing 500 large cap companies
A type of investment fund
What does Social Security provide?
A retirement savings plan
Monthly benefits to millions of Americans
A market where shares are bought and sold
A bond with a maturity of more than 10 years
What is a Stock?
A type of investment fund
A bond issued by the U.S. Treasury
A retirement savings plan
A share of the value of a company
What is a Stock Exchange?
A federal program for retirees
A retirement savings plan
A market where shares in corporations are bought and sold
A bond with a maturity of more than 10 years
What is a Target Date Fund (TDF)?
A bond generally considered to be risk-free
An index of large cap companies
A retirement account for setting aside pre-tax income
An investment fund that rebalances its asset mix over time based on a projected retirement year
What is a Treasury Bond?
A retirement savings plan
A bond issued by the U.S. Treasury with a maturity of more than 10 years
A share of the value of a company
A federal program providing benefits to Americans
What is a Traditional IRA?
A type of investment fund that rebalances over time
An individual retirement account for setting aside pre-tax income
A market where shares are bought and sold
A bond with a maturity of more than 10 years
What is a Traditional 401(k) Plan?
A stock market index representing large cap companies
A federal program providing benefits to Americans
A bond issued by the U.S. Treasury
A retirement savings plan sponsored through an employer
