Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
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Investing Quiz<br />
1. Which of the following are popular investments?<br />
a. Stocks <strong>and</strong> bonds<br />
b. Mutual funds<br />
c. Money market accounts<br />
d. All of the above<br />
2. Two types of stock are:<br />
a. Roth <strong>and</strong> 401K<br />
b. Risk <strong>and</strong> Reward<br />
c. St<strong>and</strong>ard <strong>and</strong> Poor’s<br />
d. Common <strong>and</strong> Preferred<br />
3. Diversification is a common investment strategy. Which of the following is the best<br />
example of diversification?<br />
a. Buying stocks, bonds <strong>and</strong> certificates of deposits<br />
b. Buying stock in 3 technology companies<br />
c. Purchasing corporate, treasury <strong>and</strong> municipal bonds<br />
d. Purchasing stocks from different brokers<br />
4. A corporate bond that typically pays high interest because it is high risk is called:<br />
a. A municipal bond<br />
b. A treasury bond<br />
c. A junk bond<br />
d. A corporate bond<br />
5. All of the following are stock exchanges except:<br />
a. NYSE<br />
b. FDIC<br />
c. AMEX<br />
d. NASDAQ<br />
6. A mutual fund is:<br />
a. Managed by a professional<br />
b. A pool of money used to buy a variety of stocks<br />
c. A way an investor can buy shares in companies that they couldn’t afford to buy alone<br />
d. All of the above<br />
7. A fee paid to a broker is called:<br />
a. Interest<br />
b. Dividends<br />
c. Commission<br />
d. Return on investment<br />
75
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