WorksheetsInvestment Basics Test– 20-Question Assessment (10th Grade)
Total questions: 20
Worksheet time: 10mins
What is an investment?
Money you borrow
Money you save in a jar
Money put into something with the goal of earning more money
Money spent on entertainment
Which of the following is considered a low-risk investment?
Stocks
Savings account
Cryptocurrency
Collectibles
The amount of money you initially invest is called:
Profit
Principal
Return
Expense
What does ROI stand for?
Rate of Inflation
Return on Investment
Risk of Income
Real Operating Income
A share of stock represents:
A loan you give to a company
Ownership in a company
Which investment typically has the highest potential return but also higher risk?
Certificate of Deposit (CD)
Stock market
Treasury bonds
Savings account
Diversification means:
Putting all your money into one investment
Spreading investments across different types
Saving money at home
Buying only technology stocks
The profit you earn from an investment is called:
Principal
Return
Expense
Loss
Which factor MOST affects investment growth?
Your age
Your favorite store
Time
Your career
Bonds are best described as:
A loan to a government or company
Ownership in a company
Guaranteed million-dollar returns
A high-risk investment can result in both high losses and high returns.
True
False
The stock market is guaranteed to make you money.
True
False
Investing early gives your money more time to grow.
True
False
All investments have some level of risk.
True
False
Savings accounts usually earn more interest than stocks.
True
False
16. ____ A group of stocks and bonds managed by professionals.
C. Mutual Fund
D. Savings Account
E. Certificate of Deposit
F. Treasury Bill
17. ____ A unit of ownership in a company.
A. Stock
B. Bond
C. Mutual Fund
D. Certificate of Deposit
18. ____ A loan made to a company or government.
A. Stock
B. Bond
C. Mutual Fund
D. Savings Account
Explain why diversification is important when investing.
It helps reduce risk by spreading investments across different assets.
It guarantees high returns regardless of market conditions.
It eliminates all risks associated with investing.
It focuses all investments in a single asset for maximum profit.
One difference between stocks and bonds is:
Stocks represent ownership in a company, while bonds are loans to a company or government.
Stocks are always safer investments than bonds.
Bonds represent ownership in a company, while stocks are loans to a company.
Stocks and bonds are exactly the same.
