Finance and Investment Quiz

Which famous Wall Street animal symbolizes a rising market?

• Lion

• Bull

• Bear

• Elephant

What does the term "short selling" mean in stock trading?

• Buying shares with the hope they will increase in value

• Selling shares you own at a high price

• Borrowing shares to sell them at a high price and repurchase at a lower price

• Selling shares at a discount

What is “leverage” in finance?

• Using borrowed money to increase the potential return of an investment

• The use of cash only to fund investments

• Selling stocks in bulk

• Dividing stocks into smaller units

In Shark Tank, entrepreneurs pitch their ideas to investors. What are these investors commonly called?

• Hedge fund managers

• Venture capitalists

• Angel investors

• Financial analysts

What is “forex trading”?

• Buying and selling of commodities

• Trading of foreign currencies

• Investing in real estate abroad

• Purchasing international stocks

What does a “credit score” represent?

• The amount of debt someone can incur

• A measure of creditworthiness, showing how likely a person is to repay debt

• A person’s bank balance

• The interest rate on a person’s loans

What does “GDP” stand for, and what does it measure?

• Gross Domestic Product; measures the total value of goods and services produced in a country

• Gross Dividend Percentage; measures stock dividends

• Government Debt Percentage; measures national debt

• Global Debt Projection; measures debt worldwide

What does the "50-30-20 rule" suggest in budgeting?

• Spend 50% on wants, 30% on needs, 20% on savings

• Spend 50% on needs, 30% on wants, 20% on savings

• Spend 50% on savings, 30% on debt, 20% on expenses

• Spend 50% on expenses, 30% on investments, 20% on luxuries

What is a “premium” in terms of insurance?

• The deductible amount on an insurance policy

• The amount you pay regularly to keep the insurance policy active

• The amount paid by insurance during a claim

• The total payout of the insurance policy

What is a "blue chip" stock?

• A stock that has low risk and low returns

• A highly valued, well-established company stock

• A startup company stock

• A stock you can only buy at night