Investing Unit Test

Quiz
•
Mathematics
•
12th Grade
•
Easy
+14
Standards-aligned
Joshua Rap
Used 1+ times
FREE Resource
31 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does investing in the stock market differ from putting money in a savings account at a bank?
Investing is always a less risky option than saving
Investing is best for short-term situations like emergency funds; saving is best for the long-term
Investing typically earns between 1-2% while saving generally earns between 5-7%
Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following statements is TRUE about compound interest?
Compound interest is difficult to calculate, so those who use it earn higher profits for their efforts
Compound interest means you have a fund manager who is compounding your returns without charging a fee
Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned
Compound interest directly impacts how much you will be charged in fees
Tags
CCSS.7.RP.A.3
3.
MULTIPLE SELECT QUESTION
30 sec • 1 pt
What kinds of behaviors can PREVENT people from making smart investing decisions?
Staying calm when the market is experiencing a downturn
Buying stocks when prices are low and selling them when they're high
Exiting the market because that's what everyone else is doing
Investing in a diversified portfolio instead of trying to beat the market
Tags
CCSS.RL.5.6
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Daniel has saved $2,000 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time?
His purchasing power will DECREASE because the interest rate is lower than the historical rate of inflation
His purchasing power will INCREASE because the interest rate is higher than the historical rate of inflation
His purchasing power will INCREASE because the interest will compound faster than the historical rate of inflation
His purchasing power will remain the SAME because the interest rate is the same as the historical rate of inflation
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following accurately describes a difference between an individual bond compared to a bond fund?
A bond pays you dividends while a bond fund pays you regular interest
A bond guarantees you a higher rate of return than a bond fund
A bond is issued by a company while bond funds only invest in government bonds
A bond is considered to be a less diversified investment than a bond fund
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following statements about Exchange Traded Funds (ETFs) is TRUE?
ETFs are traded once a day after the market closes
An ETF is a single stock that you can buy in the stock market
Actively managed ETFs have very low fees
ETF prices can change throughout the day as they are exchanged on the market
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
You bought 10 shares of stock in Streaming VideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on Streaming VideoCo stock? (Assume that Streaming VideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.)
Loss of $800
Profit of $350
Loss of $450
Profit of $800
Tags
CCSS.7.EE.B.3
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