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Investment Concepts and Real Estate

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

Which of the following is NOT a risk when investing in real estate?

a)


tenants may not pay rent


b)


tenants may destroy your property


c)


real estate values may increase


d)

real estate values may decrease

2.

Which of the following investments is NOT in the Stock Market?

a)

mutual funds

b)

ETFs

c)

real estate

d)

individual stocks

3.

Identify the investment:
- the investor loans money to a city or county government, or a company
- money is repaid after a certain date, plus interest is paid
- generally considered a safe investment, although not insured by the FDIC

a)

bonds

b)

ETF

c)

Savings account

d)

mutual funds

4.

Who assists you in purchasing real estate?

a)

stockbroker

b)

real estate agent

c)

insurance agent

d)

police officer

5.

Identify the investment:
- insured by the FDIC
- lowest interest rate of all investments
- in most cases, you can make up to 3 withdrawals per month

a)

money market

b)

traditional savings account

c)

ETFs

d)

CDs

6.

Identify the investment:
- risky
- ownership in a corporation
- pays dividends
- potential for reward is high

a)

stocks

b)

bonds

c)

commodities

d)

real estate

7.

Identify the investment:
- pools similar stocks together
- the most popular type of investment
- safer than investing in individual stocks

a)

mutual funds

b)

bonds

c)

real estate

d)

commodities

8.

Identify the investment:
- insured by the FDIC
- earns higher interest than a traditional savings account
- requires a higher balance than a traditional savings account

a)

ETF

b)

money market account

c)

bonds

d)

stocks

9.

Rank these investments from safest to riskiest:

a)

Savings accounts, ETFs, Bond, Individual stocks


b)

Savings accounts, Bonds, ETFs, Individual stocks


c)


Savings accounts, ETFs, Individual stocks, Bonds


d)

Bonds, Savings accounts, Individual stocks, ETFs

10.

Marcus has received a $20,000 gift for graduating high school, and he wants to invest is money in the stock market. Which of the following would NOT be able to help him?

a)

websites like ETrade

b)

real estate agents

c)

stockbroker

d)

financial advisor

11.

Which of the following is NOT a recommended strategy when investing in stocks?

a)

Avoid investing solely in individual stocks


b)

Sell your stocks when the market is going down


c)

Hold onto your stocks, and don’t sell them even when the market goes down.


d)

Buy when the price is low.

12.

Many financial advisors recommend that investors diversify their investment portfolio. Which of the following is NOT true about a diverse investment strategy?

a)

it protects against risk

b)


It is a strategy of having many different types of investments.


c)

You will not lose any money with this strategy.


d)

You will have a mix of risky and safe investments.

13.

Which of the following is NOT a common reason that teens today are saving their money?

a)

Saving for a car

b)

Saving for retirement

c)

Saving for college

d)

Saving for a graduation trip