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WorksheetsRefresher Activity
Total questions: 10
Worksheet time: 3mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Which would be considered the highest risk investment type?
Stock
Mutual Fund
U.S. Government Bond
Bank Certificate of Deposit
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
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
What is a stock?
A loan an investor makes to a company or government that pays interest over time.
A share of ownership in a company
A collection of investments sold as a package.
An option to purchase something in the future at todays price.
What is the primary reason for a company to issue stock?
The stocks help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase greater awareness of the company
Which one of the following types of investments has the highest risk and the highest potential rate of return?
Stocks
Government Bonds
Certificates of Deposits
Savings Accounts
Examples include gold, oil, silver and natural gas. They are traded on a stock exchange.
Bonds
Stocks
Collectibles
Commodities
Cash payment (per share) made by the company to its shareholders is called a.....
Beta
Bid
Dividend
Market Cap
Which is NOT sound financial advice?
Start early
"Diversify" your money into a variety of investments
Buy only technology stocks - It is the future!
Don't take money out of your retirement account until age 59.5 or later.
