16 Questions
What is the purpose of a company issuing stock?
To raise money that can be used to grow the company
Which investment type has the lowest risk and lowest rate of return?
Savings in banks
What do you become by purchasing a company's stock?
Owner of the company
What is the income earned on a bond called?
Interest
What is the purpose of creating a budget?
To eliminate unnecessary expenses
What is the strategy to earn short-term income from stocks?
Buy low, sell high
What is the term that refers to how comfortable a person is with the ups and downs of investing?
Risk tolerance
Which of the following represents a source of cash inflow that an individual uses to support themselves and their family?
Income
What is the overall objective of a shareholder?
Wealth maximization
Which type of investment is considered the safest among the following options?
Treasury bond
What is the difference between shares and bonds?
Shares represent ownership whereas bonds do not
What is the main purpose of health insurance, life insurance, and estate planning?
To guard against unforeseen and adverse events
What is the phase that retired individuals belong to?
Spending
Why is financial planning important?
To reach financial goals and protect assets
What is the difference between a corporation and a cooperative?
A corporation represents ownership whereas a cooperative does not
What should one think of stocks?
One should think of stocks as pieces of businesses
Test your knowledge of investment and finance terminology with this quiz. From bonds to stocks, dividends to mutual funds, this quiz covers a range of terms related to financial investments and assets.
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