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Worksheets

Investing Basics for Students

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

P/E Ratio

a)

Price-to-Earnings ratio, valuation measure

b)

Price-to-Equity ratio, investment metric

c)

Price-to-Earnings growth, financial indicator

d)

Price-to-Expense ratio, cost analysis

2.

Blue Chip Stocks

a)

Shares in large, stable companies

b)

High-risk stocks with potential for high returns

c)

Stocks of newly established companies

d)

Shares in companies with fluctuating earnings

3.

Yield

a)

Income return on an investment

b)

A type of investment strategy

c)

The total amount invested

d)

A measure of risk in investments

4.

Mutual Fund

a)

Pool of funds from many investors

b)

A type of stock investment

c)

A government bond

d)

A real estate investment trust

5.

Return

a)

Profit from an investment

b)

Loss from an investment

c)

Total revenue generated

d)

Initial capital invested

6.

Bull Market

a)

Rising stock prices

b)

Falling stock prices

c)

Stable stock prices

d)

Volatile stock prices

7.

Risk

a)

Potential for loss in investment

b)

Guaranteed profit from investment

c)

Stable returns on investment

d)

No chance of loss in investment

8.

Dividend

a)

Share of profits paid to shareholders

b)

A type of tax on corporate earnings

c)

A fee paid to financial advisors

d)

A method of calculating interest rates

9.

Bear Market

a)

Rising stock prices

b)

Stable stock prices

c)

Falling stock prices

d)

Volatile stock prices

10.

Liquidity

a)

Ease of converting assets to cash

b)

The total amount of money in circulation

c)

The ability to generate profit from investments

d)

The process of managing financial risks

11.

Diversification

a)

Spreading investments to reduce risk

b)

Investing all funds in a single asset

c)

Focusing on high-risk investments

d)

Minimizing the number of investments

12.

Capital Gain

a)

Profit from selling an asset

b)

Loss from selling an asset

c)

Income from dividends

d)

Revenue from interest

13.

Compound Interest

a)

Interest on initial principal and accumulated interest

b)

Interest calculated only on the initial principal

c)

Interest that is paid out at regular intervals

d)

Interest that decreases over time

14.

Bond

a)

Loan to a company or government

b)

A type of stock investment

c)

A form of insurance policy

d)

A government grant

15.

Inflation

a)

Increase in prices over time

b)

Decrease in prices over time

c)

Stability in prices over time

d)

Increase in wages over time

16.

Stock

a)

Ownership in a company

b)

A type of bond

c)

A form of currency

d)

A financial derivative

17.

Portfolio

a)

Collection of investments

b)

A type of financial statement

c)

A single investment asset

d)

A method of risk assessment

18.

Asset Allocation

a)

Distribution of investments across categories

b)

Maximizing returns on a single investment

c)

Investing only in stocks

d)

A method to reduce investment risk by focusing on one asset class

19.

Market Capitalization

a)

Total value of a company's shares

b)

The total revenue of a company

c)

The total number of shares issued by a company

d)

The total profit of a company

20.

Index Fund

a)

Tracks a market index

b)

Invests in individual stocks

c)

Focuses on high-risk assets

d)

Is a type of mutual fund that guarantees returns