WorksheetsInvesting Test Review
Total questions: 20
Worksheet time: 20mins
A pool of money collected from many investors, and used to buy stocks, bonds, and other securities.
stock
mutual fund
bond
goals
Much less risky
saving
investing
Deposit is usually not insured
investing
saving
Provides fixed interest payments for a set period of time
money
stock
bond
mutual fund
All are benefits of saving, except
safe, reliable, convenient
earns a higher return of interest
earns a small amount of interest
insured by the FDIC
Saving and investing provide opportunities to increase your wealth, leading to financial security
True
False
If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?
It's increasing
It's decreasing
It's not changing
Inflation and purchasing power are not related
Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?
Profit of $5
Loss of $5
Profit of $25
Loss of $25
____ are secure places for consumers and businesses to store money.
Banks
Stocks
Boxes
Envelopes
Most experts agree that people should invest in the market over the
short-term
long term
no term
What makes saving a low-risk activity?
When you save money, there is always the chance that it could go down.
When you save money, you are just putting money away in an account that only goes up by little amounts.
When you save money, there's always the possibility that it could disappear.
If the demand for a stock increases, then the price will likely
decrease
increase
stay the same
Money paid regularly at a particular rate for the use of money lent
loan
credit
interest
debt
Units of equity ownership interest in a company
Shares
cashier check
money order
Type of security that gives stockholders a share of ownership in a company
Credit Cards
Debit
Stocks
Properties
Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
increases the risk/return ratio.
limits investors choices to only one or two investment tools.
indicates an investor is a good predictor of the return an investment will have.
decreases risk by investing money in a variety of investment tools.
Which of the following is not true in regards to investing in stock?
A stockholder owns a part of a company
Depending upon the current market price, stockholders may pay different prices for the same stock
A stockholder may or may not receive a dividend
A stockholder will always receive a profit when the stock is sold
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
