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6D: Investments & Returns Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is the primary purpose of a stock split?

a)

To increase the overall value of the company

b)

To make shares more affordable for investors

c)

To reduce the number of shares available

d)

To increase the dividend payout

2.

Which type of stock is typically known for stable earnings and dividends?

a)

Growth stock

b)

Penny stock

c)

Blue chip stock

d)

Speculative stock

3.

What is a dividend?

a)

A type of bond

b)

A portion of a company's earnings distributed to shareholders

c)

A measure of stock volatility

d)

A type of real estate investment

4.

Which of the following is a type of bond?

a)

Growth bond

b)

Corporate bond

c)

Equity bond

d)

Dividend bond

5.

What is investment fraud?

a)

A legitimate investment strategy

b)

A scheme to deceive investors for financial gain

c)

A type of stock

d)

A government-backed bond

6.

What does the annual rate of return on investments measure?

a)

The total amount invested

b)

The percentage increase in the value of an investment over a year

c)

The inflation rate

d)

The number of shares owned

7.

Which of the following is considered a real estate investment?

a)

Corporate bond

b)

Savings account

c)

Rental property

d)

Stock option

8.

What is the annual rate of inflation?

a)

The rate at which the general level of prices for goods and services rises

b)

The rate at which stock prices increase

c)

The rate at which bond prices decrease

d)

The rate at which dividends are paid

9.

Which type of stock is typically associated with high growth potential but higher risk?

a)

Blue chip stock

b)

Growth stock

c)

Income stock

d)

Defensive stock

10.

What is a U.S. savings bond?

a)

A type of stock

b)

A government-backed bond that earns interest over time

c)

A corporate bond

d)

A type of real estate investment