Unit 6 Test Investing

Unit 6 Test Investing

8th Grade

15 Qs

quiz-placeholder

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Unit 6 Test Investing

Unit 6 Test Investing

Assessment

Quiz

Other

8th Grade

Medium

Created by

Rocco Costanza

Used 89+ times

FREE Resource

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

What is a key difference between saving and investing?

Saving is for long-term goals; investing is for short-term goals

Saving earns a much higher rate of return than investing your money

Saving guarantees you the money you put away while investing has no guarantees.

Saving earns compound interest while investing earns simple interest

2.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Select the best definition of compound interest.

Compound interest is earning interest on the original amount you deposited.

Compound interest is earning interest on the original amount you deposited plus any interest earned.

Compound interest is the amount of interest you are charged on your bank account each month.

Compound interest is earning a fixed dollar amount on your bank account each month.

3.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

What is a stock?

A stock is a share of ownership in a company.

A stock is a lending investment to the government or a company.

A stock is an insured bank account with high risk.

A stock is a type of investment that uses money from investors to purchase many different investment types.

4.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

What type of market is described by a receding economy and a decline in the stock market?

Bear Market

Bull Market

Pig Market

Sheep Market

5.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Duncan plans to invest all of his money in individual stocks. Why is this likely a bad investment strategy?

He will need a large amount of money to invest in individual stocks.

Purchasing individual stocks has a very low amount of risk and a low return.

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.

6.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Which statement best describes the risk level of bonds?

Bonds are one of the riskiest investment types, but have the potential for a high return.

Bonds have a moderate amount of risk, but are a riskier investment when compared to stocks.

Bonds have a low to moderate amount of risk and are less risky than stocks.

Bonds have no risk.

7.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

What is one way you can earn money by investing in bonds?

Through interest collected on your original investment.

Through dividends.

By selling your shares in the bond.

By purchasing a diversified bond type.

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