Introduction To Investing Quiz

13 Questions | By Dwall1 | Updated: Mar 22, 2022 | Attempts: 1676

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Have you or are you studying finance, economics, investing or banking on a regular basis and how much information do you recall from the study? Take this quiz if you want to refresh your memory on investing.

Questions and Answers

1.

Why do you look at the long-term track record with a mutual fund?
2.

How do you go about finding the right person to help you invest?
3.

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
4.

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
5.

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
6.

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
7.

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
8.

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
9.

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
10.

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
11.

Which of the following investment tools is considered to be a speculative investment?
- A.
  
  Real Estate
- B.
  
  Mutual Fund
- C.
  
  Savings Bond
- D.
  
  Futures
12.

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.