
Test Review
Quiz by Melia tyson
Feel free to use or edit a copy
includes Teacher and Student dashboards
Measure skillsfrom any curriculum
Measure skills
from any curriculum
Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.
With a free account, teachers can
- edit the questions
- save a copy for later
- start a class game
- automatically assign follow-up activities based on students’ scores
- assign as homework
- share a link with colleagues
- print as a bubble sheet
19 questions
Show answers
- Q1What is a key difference between saving and investing?Saving earns compound interest while investing earns simple interestSaving guarantees you the money you put away while investing has no guaranteesSaving earns a much higher rate of return than investing your moneySaving is for long-term goals; investing is for short-term goals30s
- Q2Select the best definition of compound interest.Compound interest is earning a fixed dollar amount on your bank account each month.Compound interest is earning interest on the original amount you deposited plus any interest earned.Compound interest is earning interest on the original amount you deposited.Compound interest is the amount of interest you are charged on your bank account each month.30s
- Q3What is a stock?A stock is a type of investment that uses money from investors to purchase many different investment types.A stock is a lending investment to the government or a company.A stock is a share of ownership in a company.A stock is an insured bank account with high risk.30s
- Q4What type of market is described by a receding economy and a decline in the stock market?Bear MarketBull MarketSheep MarketPig Market30s
- Q5What is the current Trading Price? What was the price of this stock 5 years ago? Overall, is the market doing well today? (Make sure you are able to explain your answer for your test!!)232.90, 140.06, Yes233.08,140.06, Yes233.08, 122.06, Yes.232.90, 122.06, Yes30s
- Q6Duncan plans to invest all of his money in individual stocks. Why is this likely a bad investment strategy?Purchasing individual stocks has a very low amount of risk and a low return.He will need a large amount of money to invest in individual stocks.He will need to open multiple brokerage accounts for each stock he purchases.Purchasing individual stocks has a high amount of risk and little diversification.30s
- Q7Which statement best describes the risk level of bonds?Bonds have a moderate amount of risk, but are a riskier investment when compared to stocks.Bonds have no risk.Bonds have a low to moderate amount of risk and are less risky than stocks.Bonds are one of the riskiest investment types, but have the potential for a high return.30s
- Q8What is one way you can earn money by investing in bonds?By selling your shares in the bond.Through dividends.Through interest collected on your original investment.By purchasing a diversified bond type.30s
- Q9Lizzy is 24 years old. She makes $85,000 per year, has a fully funded Emergency Fund, and extra income each month. What should be her investor risk level?AverageModerateAggressiveConservative30s
- Q10Which of the following is a characteristic of an index fund?High feesInsuredDiversifiedProfessionally managed30s
- Q11Your friend Jamal is 14 and wants to begin investing. He has taxable income from working at his uncle's sporting goods store. What type of account would you advise him to open?A custodial brokerage accountA custodial Roth IRAA 401kA traditional savings account30s
- Q12Mariam is young, willing to take a moderate amount of risk, but most importantly, wants an investment that is low-cost and diversified. Which is the best investment type for Mariam?A bondA savings accountAn index fundAn individual stock30s
- Q13Which statement best describes how diversification impacts risk when you are investing?Diversification means spreading your money across multiple investments, which increases risk.Diversification means putting all of your money into one investment, which decreases risk.Diversification means putting all of your money into one investment, which increases risk.Diversification means spreading your money across multiple investments, which decreases risk.30s
- Q14What is one requirement to open a Custodial IRA account?You must have a valid driver's licenseYou must have taxable income or wages.You must be 18 years old.You must also open a savings & checking account.30s
- Q15Why is it important for you to understand YOUR risk tolerance before you start investing?it is recommended that people with a low risk tolerance shouldn't invest at all.You should create an investment portfolio that includes an amount of risk you are comfortable with.If you have a high risk tolerance, you will likely pay less in investment fees.You must be willing to take a high amount of risk to begin investing.30s