Investment and Finance Terminology Quiz

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ExceedingLanthanum
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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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