How To Invest Your Money?

19 Questions | Total Attempts: 239

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Investing Quizzes & Trivia

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Questions and Answers
  • 1. 
    A blue chip stock is associated with a company:
    • A. 

      With a consistent record of relatively rapid growth and earnings

    • B. 

      With a spotty earnings pattern but potential for substantial earnings in the future

    • C. 

      Which dominates its respective industry and has a good company management reputation

    • D. 

      With a steady stream of income paying high dividends and retaining only a small portion of profits

  • 2. 
    A diversified portfolio is desirable because it:
    • A. 

      Increases the risk/return ratio

    • B. 

      Limits investors choices to only one or two investment tools

    • C. 

      Indicates an investor is a good predictor of the return an investment will have

    • D. 

      Decreases risk by investing money in a variety of investment tools

  • 3. 
    A growth stock is associated with a company:
    • A. 

      That is new with a consistent record of relatively rapid growth and earnings

    • B. 

      With a spotty earnings pattern but potential for substantial earnings in the future

    • C. 

      Which dominates its respective industry and has a good company management reputation

    • D. 

      With a steady stream of income paying high dividends and retaining only a small portion of profits

  • 4. 
    An income stock could also be called a:
    • A. 

      Treasury bond

    • B. 

      Value Stock

    • C. 

      Countercyclical Stock

    • D. 

      Cyclical Stock

  • 5. 
    An investor can assess the health of the economy by researching the:
    • A. 

      Dow Jones Industrial Average

    • B. 

      Standard and Poor's 500 Composite Index

    • C. 

      National Association of Security Dealers Automated Quotations (NASDAQ)

    • D. 

      All of the above

  • 6. 
    Brian is 56 years old.  He is anticipating retirement in the next ten years.  He would like to invest in the stock market.  What price/earnings ratio would satisfy Brian's needs?
    • A. 

      7-10

    • B. 

      15-25

    • C. 

      40-50

    • D. 

      The P/E ratio of a company should not affect Brian's choice

  • 7. 
    Conner wants to purchase stocks with the money he received from his tax return.  Who would he contact to make the transactions?
    • A. 

      A brokerage firm

    • B. 

      A depository institution

    • C. 

      The New York Stock Exchange

    • D. 

      Any of the above

  • 8. 
    Cyclical stock are greatly influenced by:
    • A. 

      Changes in the market that make it a bull market

    • B. 

      Changes in the economic business cycles

    • C. 

      The highest and lowest prices the stock was sold at per share during the last 52 weeks

    • D. 

      The ratio of stock to bonds that are sold on a daily basis

  • 9. 
    Stock analysts use this term for a market which is doing poorly and does not have investor confidence:
    • A. 

      Rooster market

    • B. 

      Bear market

    • C. 

      Bull market

    • D. 

      Sheep market

  • 10. 
    The numerical measure an investor looks at when determining how well a company's stock is doing is the:
    • A. 

      P/E ration

    • B. 

      Beta

    • C. 

      Book value

    • D. 

      All of the above

  • 11. 
    The relatiioshipp between risk and return in investing can be stated as:
    • A. 

      Higher risk indicates lower return

    • B. 

      Higher risk indicates higher return

    • C. 

      Lower risk indicates higher return

    • D. 

      No relationship exists between risk and return

  • 12. 
    The value of a stock can change when:
    • A. 

      Dollar value of a stock increases or decreases

    • B. 

      A stock split occurs

    • C. 

      A merger happens between two companies

    • D. 

      All of the above

  • 13. 
    What is a bond?
    • A. 

      A type of debt that a company issues to investors for a specified amount of time

    • B. 

      A share of ownership in a company

    • C. 

      A type of investment that is only offered by depository institutions

    • D. 

      A type of Certificate of Deposit with a higher than average interest rate

  • 14. 
    What is inflation?
    • A. 

      The rise in the general level of prices.

    • B. 

      The uncertainty the return on an investment will deviate from what is expected.

    • C. 

      The number of times something happens to money.

    • D. 

      The projected value of an investment at the end of a specified time frame.

  • 15. 
    What should be remembered when applying the Rule of 72?
    • A. 

      Tax deductins are included within the equation

    • B. 

      Interest earned is reinvested

    • C. 

      The rule is only an approximation

    • D. 

      Both b and c

  • 16. 
    When comparing and contrasting a mutual fund and an index fund, which of the following is true?
    • A. 

      The stocks and bonds that create a mutual fund are chosen by the investor, where as the stocks and bonds that crete an index fund are chosen by a group of experts

    • B. 

      The stocks and bonds that crete a mutual fund are chosen by a group of experts, where as the stocks and bonds that crete an index fund and pre-determined by an index

    • C. 

      There is no difference between a mutual fund and an index fund

    • D. 

      None of the above

  • 17. 
    Which of the following investment tools is considered to be a speculative investment?
    • A. 

      Real Estate

    • B. 

      Mutual Fund

    • C. 

      Savings Bond

    • D. 

      Futures

  • 18. 
    Which of the following is true in regards to investing in stock?
    • A. 

      A stock investor may or may not receive a profit

    • B. 

      A stock investor may receive a dividend

    • C. 

      A stock investor owns a part of a company

    • D. 

      All of the above

  • 19. 
    Which of the following statements is true in regards to paying taxes on investments?
    • A. 

      Since investments are considered unearned income, taxes do not have to be paid on earnings.

    • B. 

      Taxes have to be paid on every type of investment in the year in whcih the unearned income is received.

    • C. 

      Taxes only have to be paid on employer-sponsored investment accounts.

    • D. 

      None of the above

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