WorksheetsNGPF Investing 1 Vocab Quiz
Total questions: 23
Worksheet time: 12mins
What is a bond?
A type of ownership in a company
A loan to a company or government that pays interest over time
A collection of multiple investments
A savings account with tax benefits
What is a municipal bond?
A bond issued by a corporation
A bond issued by local or state governments for public projects
A financial contract between banks
A high-risk stock investment
Which account allows investors to trade stocks, bonds, and other assets?
Brokerage Account
Budgeting App
Savings Acount
Pension Fund
The yearly interest paid on a bond, expressed as a percentage, is called:
Stock Yield
Capital Return
ETF Growth
Coupon Rate
Profit made from selling an asset for more than its purchase price is called:
Interest Earnings
Capital Gains
Passive Return
Dividend Payment
Allocating investments among stocks, bonds, and cash to diversify risk is known as:
Active Trading
Dollar-Cost Averaging
Fixed-Income Strategy
Asset Allocation
Spreading investments across various assets to reduce risk is called:
Insider Trading
Bond Repayment
Diversification
Short Selling
What is the tax applied to profits made from selling an asset for more than its purchase price?
Interest Tax
Property Tax
Payroll Tax
Capital Gains Tax
What type of account helps individuals save for retirement with potential tax advantages?
Brokerage Account
Traditional IRA
Checking Account
Credit Account
Trading stocks based on confidential, non-public information. It refers to the illegal practice of buying or selling a company's stock based on confidential, non-public information about the company
Market Speculation
Dividend Investing
Insider Trading
Compound Returns
What is active trading?
Buying and selling investments frequently to profit from price changes
Investing only in government bonds
A fixed-income investment strategy
Holding stocks for long-term growth
What type of market is characterized by declining stock prices and investor pessimism?
Bull Market
Compound Market
Insider Market
Bear Market
The strategy of investing a fixed amount at regular intervals is called:
Dollar-Cost Averaging
Short Selling
Day Trading
Dividend Investing
What financial concept refers to reinvesting earnings so they generate additional earnings over time?
Compound Return
Dividend Growth
Insider Gain
Capital Loss
An Exchange-Traded Fund (ETF) is:
A low-cost portfolio designed to replicate a stock market index
A savings account with tax benefits
A collection of high-risk stocks
A retirement plan
What does market capitalization measure?
The yearly growth rate of stock prices
The annual interest paid on an investment
The total volume of trades in a stock market
The total value of a company's shares
What is the primary goal of long-term investing?
Maximizing quick profits in short periods
Growing wealth steadily over time
Trading frequently for instant gains
Avoiding any market risks
Which market condition is characterized by increasing stock prices and investor optimism?
Bull Market
Bear Market
Speculative Market
Dovish
An asset acquired to generate profit is called:
Risk Hedging
Dividend Payment
Investment
Security
What is the periodic payment to shareholders from company profits?
Dividend
Expense Ratio
Bond Interest
Capital Gain
Which investment method focuses on consistent portfolio management without frequent trading?
Short Selling
Insider Trading
Passive Investing
Active Trading
What is the role of an IRA in retirement planning?
Offers interest-free loans for personal expenses
It provides a tax-advantaged way to save for retirement
Helps manage daily spending habits
Functions as a high-risk stock trading account
Which factor helps determine a bond’s likelihood of repayment?
Bond Yield
Insider Trading Activity
Market Volatility
Credit Rating
