12 Questions
What does the term 'invest' mean?
To put money into something with the expectation of earning a profit
What are the main types of investments?
Stocks, bonds, cash equivalents, and real assets
What is a bond?
A type of investment that represents a loan
What is a rate of return?
The amount of money earned as interest
What is an opportunity cost?
The value of the next best alternative that is given up
What is the purpose of a savings account?
To build up an emergency fund
What is the main advantage of a Certificate of Deposit (COD) over a savings account?
The higher interest rate offered
Why is an Index Fund a good option for long-term investments?
Because it diversifies risk across the entire stock market
What happens to the value of your shares when the company performs well?
It increases
What is the main benefit of Government Bonds in a portfolio?
They reduce risk by being a stable investment
What happens if you withdraw your money from a COD before the term is up?
You are charged a penalty
What is the goal of buying and selling individual stocks?
To buy low and sell high to make a profit
Test your knowledge of investment basics! Answer questions about the meaning of 'invest', types of investments, stocks, bonds, pensions, and more. Use online resources to help you complete this scavenger hunt.
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