Introduction To Investing Quiz

13 Questions | Total Attempts: 1121

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Introduction To Investing Quiz

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. 
    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

  • 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. 
    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

  • 4. 
    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

  • 5. 
    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

  • 6. 
    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

  • 7. 
    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

  • 8. 
    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

  • 9. 
    • A. 

      Real Estate

    • B. 

      Mutual Fund

    • C. 

      Savings Bond

    • D. 

      Futures

  • 10. 
    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.

  • 11. 
    Why do you look at the long-term track record with a mutual fund?
  • 12.