Finance Questions On Investment: Trivia Quiz

10 Questions | By Wlacfinance2 | Last updated: Mar 19, 2022 | Total Attempts: 62

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Finance Questions On Investment: Trivia Quiz - Quiz

Finance questions on investment: trivia quiz. Investments are driven by comparing risks and ensuring that the returns generated were worth the cash inflow. When one uses debt capital financing there is a given interest they are charged with a portion of the premium and income varies with the type of securities one chooses. Do take up the quiz and get to see how informed you are on investments available to an investor.

Questions and Answers

1.

What is a Mutual Fund?
- A.
  
  A savings account for mutual friends.
- B.
  
  A fund operated by an investment company that invests other peoples’' money.
- C.
  
  An account to pay your taxes early.
- D.
  
  A savings fund for gifts. A savings fund for gifts. A savings fund for gifts. A savings fund for gifts.
2.

What is compound interest?
- A.
  
  The level of public interest in following economic news.
- B.
  
  The amount of times a check bounces
- C.
  
  Interest paid on the original amount deposited, plus the interest that the original amount has previously earned and that was left in the account.
- D.
  
  The annual fees that some credit card companies charge consumers for their credit cards.
3.

Which of the following pays the highest returns in terms of interest?
- A.
  
  U.S. Savings Bond
- B.
  
  Savings Account
- C.
  
  Cerificate of Deposit (CD)
- D.
  
  Stocks
4.

What is Credit?
- A.
  
  The ability to purchase goods or services now in exchange for a promise to pay later.
- B.
  
  The loan application form.
- C.
  
  A plastic card.
- D.
  
  The ability that one has to buy goods or services later because he/she paid for them earlier.
5.

An annuity is?
- A.
  
  A payment made monthly for multiple years
- B.
  
  A payment made to someone or an account or received from someone or an account on a yearly basis
- C.
  
  A specified numbers of yearly payments in a mortgage
- D.
  
  An anniversary
6.

A person contemplating a purchase weighs the cost of the item against the benefits associated with it. The person is considering the of the decision.
- A.
  
  Limited resources
- B.
  
  Cost vs. benefit
- C.
  
  Choice
- D.
  
  Opportunity cost
7.

Many savings programs are protected by the Federal government against loss. Which of the following is not?
- A.
  
  A bond issued by one of the 50 States
- B.
  
  A U. S. Treasury Bond
- C.
  
  A U. S. Savings Bond
- D.
  
  A certificate of deposit at the bank
8.

The Dow Jones Industrial Average is a stock market Index that is typically used as a benchmark for the health of the overall US stock market. How many Companies are held in this index?
- A.
  
  20
- B.
  
  100
- C.
  
  30
- D.
  
  50
9.

What is the P/E Ratio?
- A.
  
  Profit to Expense ratio
- B.
  
  Price to Earnings ratio
- C.
  
  Pension to Equity ratio
- D.
  
  Nothing, you just made it up
10.

The time value of money is the concept that drives the idea of investing. The concept states that
- A.
  
  As long as there is an opportunity to earn interest, the present and future value of money is affected
- B.
  
  Money will always decreases in value over time
- C.
  
  If you don't manage your money, someone else will
- D.
  
  Investors always earn profits over time