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Understanding Investment and Stock Concepts

Total questions: 46

Worksheet time: 22mins

Name
Class
Date
1.

Putting your money where it can grow

a)

Spending

b)

Investing

c)

Borrowing

2.

A share in the company

a)

Dividends

b)

Stock

c)

Market

3.

The amount of money paid by the company to its shareholders

a)

Stocks

b)

Dividends

c)

Brokers

4.

The type of stock that is least prioritized when declaring dividends and mostly profits through price appreciation

a)

Preferred Stock

b)

Growth Stock

c)

Common Stock

5.

The type of stock that is first prioritized when declaring dividends

a)

Growth Stock

b)

Preferred Stock

c)

Common Stock

6.

The potential of either gaining profits or losing your capital

a)

risk

b)

dividends

c)

stocks

7.

People who invest their money with the expectation of gaining returns over a longer timeframe

a)

traders

b)

investors

c)

brokers

8.

People who buy and sell stocks to earn from price growth over a shorter timeframe

a)

traders

b)

investors

c)

agents

9.

Where investors or traders buy and sell company shares

a)

wet market

b)

stock market

c)

grocery store

10.

Firms or individuals who are licensed to execute the buy and sell orders in exchange for a commission fee

a)

brokers

b)

bankers

c)

merchants

11.

An agreement to lend money to a borrower for a period of time for which you will be paid interest.

a)

allocate

b)

interest

c)

bond

d)

maturity

12.

Using your money in a venture where the possibility of loss is greater.

a)

high-risk investment

b)

bond

c)

low-risk investment

d)

money market

13.

A fee charged for borrowing money.

a)

allocate

b)

interest

c)

bond

d)

stock

14.

Using your money in a venture that has a lower risk of loss.

a)

interest

b)

certificate of deposit

c)

low-risk investment

d)

maturity

15.

The date on which a bond investor can receive the initial investment.

a)

venture

b)

stock

c)

interest

d)

maturity

16.
Employer sponsored retirement savings plan.
a)
401K
b)
IRA
c)
Individual Retirement Account
d)
Roth IRA
17.
One who handles the transfer of stocks and bonds between buyer and seller.
a)
Banker
b)
Stockbroker
c)
Bond Agent
d)
Sales Broker
18.
Balancing risky with less risky investments; distributing your money among a variety of investments.
a)
Diversification
b)
Divesting
c)
Roth IRA
d)
Stock Options
19.
Income one earns on an investment.
a)
Money
b)
Savings
c)
Employers Match
d)
Return
20.
Benefit an employer may offer to encourage retirement savings in which the employer will match a portion of the employee's retirement savings.
a)
Employer Match
b)
Employee Match
c)
Financing Match
d)
Stock Match
21.
Physical or electronic location where orders to buy and sell stocks are exchanged.
a)
Stock Firm
b)
Brokerage Firm
c)
Stock Exchange
d)
Market Exchange
22.
Profit from selling stock at a higher price than one paid for it.
a)
Dividend
b)
Capital Loss
c)
Capital Gain
d)
Stock Option
23.
Loss one incurs when one sells stock at a lower price than one paid for it.
a)
Capital Loss
b)
Capital Gain
c)
Capital Devalue
d)
Dividend Loss
24.
A nonvoting share that pays a fixed dividend.
a)
Common Stock
b)
Stock Options
c)
Corporate Bond
d)
Preferred Stock
25.
Shares in large, well-established corporations so tend to be less risky.
a)
Growth Stock
b)
Bond Stocks
c)
Blue-Chip Stock
d)
Red-Chip Stock
26.
Your returns (or interest rate) are 8% a year. How long before your investment doubles?
a)
9 years
b)
8 years
c)
7 years
d)
Never
27.
Your returns (or interest rate) are 6% a year. How long before your investment doubles?
a)
18 years
b)
16 years
c)
12 years
d)
8 years
28.

What calculation should you do to answer the question:

How many years will it take $900 to double if the interest rate is 2%?

a)

72 divided by 2

b)

900 divided by 2

c)

2 divided by 100 times 900

29.

A quick way to estimate how long it takes for your money to double is called...

a)

rule of 72

b)

compound interest

c)

simple interest

d)

inflation

30.

When interest is added to the balance each year and the new balance is used to calculate the interest for the next year is called...

a)

simple interest

b)

compound interest

c)

rule of 72

d)

inflation

31.

Which of the following is the formula for the Rule of 72?

a)

Time Divided by 72 Equals the Interest Rate

b)

72 Divided by Interest Rate Equals the Time to double your money

c)

Interest Rate Multiplied by 72 Equals the time to double your money

d)

Your money deposit divided by 72 Equals the time to double your money

32.

Which investment/savings tool would yield the most interest back to you?

a)

Savings account

b)

Bonds

c)

Certificates of Deposit

d)

Stocks

33.

Which of the following investment(s) is/are best suited to double up your money in the least amount of time?

a)

Mutual Funds

b)

Stocks

c)

Certificates of Deposit

d)

Savings Accounts

e)

Checking accounts

34.

If I invest $20,000 in a Certificate of Deposit that pays 3% interest, how many years till I double up my money?

a)

5

b)

12

c)

24

d)

36

35.
Your returns (or interest rate) are 8% a year. How long before your investment doubles?
a)
9 years
b)
8 years
c)
7 years
d)
Never
36.
Your returns (or interest rate) are 9% a year. How long before your investment doubles?
a)
9 years
b)
8 years
c)
7 years
d)
They won't
37.
Your returns (or interest rate) are 6% a year. How long before your investment doubles?
a)
18 years
b)
16 years
c)
12 years
d)
8 years
38.

What calculation should you do to answer the question:

How many years will it take $900 to double if the interest rate is 2%?

a)

72 divided by 2

b)

900 divided by 2

c)

2 divided by 100 times 900

39.

A quick way to estimate how long it takes for your money to double is called...

a)

rule of 72

b)

compound interest

c)

simple interest

d)

inflation

40.

When interest is added to the balance each year and the new balance is used to calculate the interest for the next year is called...

a)

simple interest

b)

compound interest

c)

rule of 72

d)

inflation

41.

Who is the creator of the Rule of 72?

a)

Lieutenant Commander Cruz

b)

Bill Gates

c)

Elon Musk

d)

Albert Einstein

42.

Which of the following is the formula for the Rule of 72?

a)

Time Divided by 72 Equals the Interest Rate

b)

72 Divided by Interest Rate Equals the Time to double your money

c)

Interest Rate Multiplied by 72 Equals the time to double your money

d)

Your money deposit divided by 72 Equals the time to double your money

43.

Which investment/savings tool would yield the most interest back to you?

a)

Savings account

b)

Bonds

c)

Certificates of Deposit

d)

Stocks

44.

Which of the following investment(s) is/are best suited to double up your money in the least amount of time?

a)

Mutual Funds

b)

Stocks

c)

Certificates of Deposit

d)

Savings Accounts

e)

Checking accounts

45.

If I invest $20,000 in a Certificate of Deposit that pays 3% interest, how many years till I double up my money?

a)

5

b)

12

c)

24

d)

36

46.

What interest rate is required to double $4,000 in 9 years?

a)

7%

b)

9%

c)

10%

d)

8%