Types Of Investments: Trivia Quiz!

20 Questions | Total Attempts: 114

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Types Of Investments: Trivia Quiz!

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Questions and Answers
  • 1. 
    The word bond is used to refer to the kind of securities that are founded by the use of debts.
    • A. 

      True

    • B. 

      False

  • 2. 
    The bond pays dividends while it's active and expires on a specific date, at which point the total face value of the bond is paid to the investor.
    • A. 

      True

    • B. 

      False

  • 3. 
    When a person buys bonds, he or she becomes part-owner of the business as a shareholder or stockholder.
    • A. 

      True

    • B. 

      False

  • 4. 
    The (capital) gain is the difference between a higher selling price and a lower purchase price.
    • A. 

      True

    • B. 

      False

  • 5. 
    A bond offering invites investors to buy an ownership position in the company while a stock offering invites them to make a loan in exchange for the promise of repayment in full plus a certain rate of interest for the use of the money.
    • A. 

      True

    • B. 

      False

  • 6. 
    A ______________is a professionally managed investment fund that pools money from many investors to purchase securities.
  • 7. 
    When you buy __________ of a fund you become a part-owner of the fund.
  • 8. 
    _____________ is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.
  • 9. 
    _____________ in business means starting a business without external help or capital. 
  • 10. 
    The selling of accounts receivables to a third party is termed _______________.
  • 11. 
    In a factoring transaction, which of the following purchases the receivables?
    • A. 

      Factor

    • B. 

      Debtor

    • C. 

      Seller

    • D. 

      Borrower

  • 12. 
    Which risk management technique mixes a wide variety of investments to potentially minimize your investment risk?
    • A. 

      Diversification

    • B. 

      Asset allocation

    • C. 

      Disinvestment

    • D. 

      Reinvestment

  • 13. 
    The income return on investment is called:
    • A. 

      Yield

    • B. 

      Money

    • C. 

      Capital

    • D. 

      Fund

  • 14. 
    It refers to a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
    • A. 

      Dividends

    • B. 

      Premium

    • C. 

      Fund

    • D. 

      Coupon

  • 15. 
    An individual who buys bonds is called:
    • A. 

      Bondholder

    • B. 

      Stockholder

    • C. 

      Shareholder

    • D. 

      Policyholder

  • 16. 
    Stocks that pay a higher than average dividend are sometimes referred to as: 
    • A. 

      Income funds

    • B. 

      Capital gains

    • C. 

      Stock funds

    • D. 

      Premiums

  • 17. 
    ____________  is when a private company or corporation raises investment capital by offering its stock to the public for the first time.
  • 18. 
    An index is usually a group of some stocks which represent an industry, a sector of the economy, or a certain part of the world.
    • A. 

      True

    • B. 

      False

  • 19. 
    It pertains to a savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date.
    • A. 

      Certificate of deposit

    • B. 

      Prospectus

    • C. 

      Structured Deposit

    • D. 

      Mutual Funds

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