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Unit 2.1 Investing

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is the definition of 'Investing'? Fill in the blank: Investing is allocating money with the expectation of a _______ return in the future.

a)

positive

b)

negative

c)

neutral

d)

guaranteed

2.

What is the simple definition of 'Investing'?

a)

Spending money for fun

b)

Sacrificing money today to make more money in the future

c)

Saving money in a piggy bank

d)

Giving money away

3.

Fill in the blank: ________ is a measure of how quickly a financial asset can be converted into cash.

a)

Liquidity

b)

Profitability

c)

Solvency

d)

Volatility

4.

Fill in the blank: ________ is the chance of losing money.

a)

Risk

b)

Profit

c)

Guarantee

d)

Interest

5.

Fill in the blank: ________ is the return gained from an investment.

a)

Reward

b)

Expense

c)

Loss

d)

Debt

6.

Fill in the blank: A ______ is an ownership share in a corporation (larger unit = macro).

a)

Stock

b)

Bond

c)

Loan

d)

Dividend

7.

Fill in the blank: A ______ is an individual piece of a company (smaller unit = micro).

a)

Share

b)

Bond

c)

Loan

d)

Dividend

8.

Fill in the blank: A mutual fund is a pool of money used by a company to purchase a variety of ______ or ______.

a)

stocks, bonds

b)

stocks, properties

c)

houses, apartments

d)

computers, phones

9.

Fill in the blank: An index fund is a portfolio of stocks or bonds designed to replicate the composition of a ______ ______ ______.

a)

financial market index

b)

government bond scheme

c)

corporate savings plan

d)

retirement benefit fund

10.

Which type of fund is actively managed and typically has higher fees?

a)

Mutual Fund

b)

Index Fund

c)

Savings Account

d)

Certificate of Deposit

11.

Which type of fund is passively managed and typically has lower fees?

a)

Mutual Fund

b)

Index Fund

c)

Real Estate Fund

d)

Hedge Fund

12.

This man created Vanguard. Who is he?

a)

Jack Bogle

b)

Warren Buffett

c)

John Templeton

d)

Peter Lynch

13.

What is a CD (Certificate of Deposit)?

a)

A) A type of loan given by a bank

b)

B) An interest-bearing certificate issued by a bank to a person depositing money for a specified period of time

c)

C) A type of stock investment

d)

D) A form of insurance policy

14.

Fill in the blank: A ______ is a fixed-income investment in which an investor lends money to a company or government for a set period of time in exchange for regular interest payments.

a)

Bond

b)

Stock

c)

Mutual Fund

d)

Real Estate

15.

What is real estate as a type of investment? Fill in the blank: Real estate is property such as ________, houses, condominiums, or office buildings.

a)

land

b)

cars

c)

jewelry

d)

stocks

16.

Match the following types of investments with their explanation

a)

Stocks

1.

represents a fraction of the ownership of the issuing corporation

b)

Bonds

2.

essentially loans to a corporation or governmental body

c)

Mutual Funds

3.

allows you to invest in all three categories of investments with a smaller amount of money

d)

Cash Alternatives

4.

Includes savings accounts, money markets, CDs, guaranteed investment contracts, etc