Finance Unbox-ED (INR) - Grade 6-8 - Session 21 - Assessment 7

Student Name

Power of compounding can be understood using simple interest

• True
• False

Compound interest means we reinvest our interest and earn interest on interest

• True
• False

Compound interest can create significant wealth for us in a short period of time

• True
• False

Compound interest is an example of instant gratification

• True
• False

Select the famous scientist who said "Compound interest is the most powerful force in the universe"

• Thomas Edison
• Isaac Newton
• Albert Einstein
• Stephen Hawking

Risk in the context of investments refers to the volatility in returns

• True
• False

Select the statement that is true about risk

• Risk is only a measure of how much the value of investments go up
• Risk is only a measure of how much the value of investments go down
• Risk is a measure of how much the value of investments go up or down
• None of the above

Risk cannot be measured for an investment that has only gone up in value

• True
• False

Risk for two investments with the same total return is always the same

• True
• False