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WorksheetsInvesting Knowledge Quiz
Total questions: 25
Worksheet time: 13mins
What is investing?
Spending money on daily needs
Using short-term savings for quick profits
Using long-term savings to earn a financial return
Keeping money in a checking account
Why is diversification important in investing?
It guarantees you won't lose money
It spreads risk among different types of investments
It focuses all investments in one area
It eliminates the need for research
Which market indicator tracks 30 important companies?
NASDAQ
The Dow Jones Industrial Average
S&P 500
Russell 2000
What is a bond?
A type of stock investment
A debt security that may pay interest
A mutual fund investment
A real estate investment
Why do people invest in stocks?
They are completely risk-free
They provide ownership in a corporation
They always guarantee returns
They only require small investments
What is a stockbroker?
Someone who owns all company stocks
A person who manages the stock exchange
Someone who buys and sells stocks for a commission
A company employee who gives away stocks
What is the NYSE?
A new type of investment
A computer program for trading
The oldest organized stock exchange in the U.S.
A government agency
What are dividends?
The total value of a company
Payments made by a corporation to shareholders
Money paid to stockbrokers
The cost of buying stocks
Which type of investment is considered low risk/low return?
Penny stocks
Bonds
Options
Futures
What is a mutual fund?
A single company stock
A government bond
Pooled money from investors to buy various securities
A personal savings account
What organization protects investors by monitoring markets?
NASDAQ
NYSE
Securities and Exchange Commission
Federal Reserve
What are penny stocks?
Stocks that cost exactly one penny
Low-priced stocks of small companies
Government-backed securities
Blue-chip company stocks
Which statement about investing is true?
Only wealthy people should invest
Small sums of money cannot grow over time
Investing should start as late as possible
Even small amounts can grow through investing
What is company is still part of the original DOW?
UPS
Walmart
GE
Ford Motor Company
What is a portfolio?
A single type of investment
A collection of investments
A stock market report
A broker's commission
Which factor influences stock prices?
Weather conditions only
Company news and economic conditions
The age of the company
The number of employees
What is NASDAQ?
A paper-based trading system
The first electronic stock exchange
A type of bond
A government agency
What are Treasury securities known for?
High risk and high return
Being backed by the U.S. government
Quick trading turnover
Frequent price changes
Which investment type is considered high risk/high return?
Penny stocks
Savings bonds
Corporate bonds
Bank certificates of deposit
What happens to collectibles as investments?
They always increase in value
They never lose value
Their value fluctuates with market interest
They provide regular dividend payments
What does it mean if a stock's value goes up?
The company is losing money
The stock is becoming less popular
The company is likely doing well financially
The interest rate on savings accounts has increased
Single stocks and mutual funds carry the same amount of risk.
True
False
What does it mean if a stock is described as "volatile"?
It pays high dividends.
Its price does not change.
It has a stable market.
Its price can change rapidly in a short period.
Based on the image, what is the current trading price of McDonald's stock?
$188.50
$186.75
$24.43
$1.75
How Many seats are in the New York Stock Exchange for stockbrokers?
1400
