Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Personal Finance Investing
Test Description: Perfi
Instructions: Answer all questions to get your test result.
1) How can investors receive compounding returns?
A
By diversifying their investment portfolio
B
By investing their earnings back into their original investment
C
By selecting a savings account that has a higher interest rate
D
By transferring their earnings into a high-risk investment
2) What are dividends?
A
A small part, or share, of a company.
B
A distribution of a small percentage of profits to shareholders.
C
None of the above.
D
A type of savings account that grows over time.
3) When you buy a ____ , you are loaning money to an organization.
A
Bond
B
Stock
C
Mutual fund
D
Index fund
4) What happens when a bond becomes due?
A
The issuer will pay you back, plus interest
B
The issuer will pay you back, minus interest
C
You pay it back to the issuer, plus interest
D
You pay it back to the issuer, minus interest
5) Which best describes the difference between stocks and bonds?
A
Stocks allow investors to share in profits; bonds make investors responsible for company debts.
B
Stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year
C
Stocks are a more reliable investment; bonds tend to be more volatile.
D
Stocks allow investors to own a portion of the company; bonds are loans to the company
6) What is the primary reason to issue stock?
A
To help investors earn a higher rate of return
B
To distribute the risk of bankruptcy across more investors
C
To increase investor awareness of the company
D
To raise money to grow the company
7) When it comes to investing, what is the typical relationship between risk and return?
A
It depends on the investment mix in your portfolio
B
The greater the potential risk, the greater the potential return
C
There is no relationship between risk and return
D
The greater the potential risk, the smaller the potential return.
8) If an employer does not offer a retirement plan, what might be another way to save for retirement?
A
Roth IRA
B
Traditional IRA
C
401k Plan
D
Both A and B
9) ________ are typically comprised of a mix of ________ and ________
A
Bonds; index funds; mutual funds
B
Mutual funds; stocks; bonds
C
Stocks; index funds; bonds
D
Stocks; bonds; index funds
10) Why might a town decide to issue bonds?
A
To build new roads or bridges.
B
Neither A nor B
C
To help save money for their residents.
D
Both A and B
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?