by Angelle Monroe
The world of investing is vast and dynamic, filled with opportunities for growth and wealth creation. This quiz is designed to test your knowledge of investing principles, strategies, and terminology. From stocks and bonds to mutual funds and ETFs, see how well you understand the intricacies of the financial markets. Good luck, and may your investments always yield positive returns!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Investing Quiz Questions Overview
1. What is a stock?
A type of bond
A share in the ownership of a company
A fixed income security
A derivative
2. What is the primary purpose of a mutual fund?
To invest in real estate
To pool money from many investors to purchase securities
To provide loans to businesses
To insure investments
3. What does ‘diversification’ mean in investing?
Investing in a single stock
Spreading investments across various assets to reduce risk
Investing only in bonds
Keeping all money in a savings account
4. What is an ETF?
Exchange-Traded Fund
Equity Trading Fund
Enhanced Trading Fund
Emerging Technology Fund
5. What does ‘ROI’ stand for?
Rate of Investment
Return on Investment
Risk of Investment
Revenue of Investment
6. What is a bond?
A share in a company
A loan made by an investor to a borrower
A type of mutual fund
An insurance policy
7. What is ‘market capitalization’?
The total value of a company’s outstanding shares
The amount of money a company has in its bank account
The total revenue of a company
The annual profit of a company
8. What is a ‘bull market’?
A market in which prices are falling
A market in which prices are rising
A market with no significant price changes
A market with high volatility
9. What is a ‘bear market’?
A market in which prices are falling
A market in which prices are rising
A market with no significant price changes
A market with high volatility
10. What is ‘liquidity’ in investing?
The ability to quickly convert an asset into cash
The ability to hold an asset for a long period
The risk associated with an investment
The return on an investment
11. What is the ‘S&P 500’?
A bond index
A stock market index that measures the performance of 500 large companies listed on stock exchanges in the United States
A mutual fund
An exchange-traded fund
12. What is ‘compound interest’?
Interest calculated on the initial principal only
Interest calculated on the initial principal and also on the accumulated interest of previous periods
Interest that decreases over time
Interest that remains constant over time
13. What is ‘dividend’?
The interest earned on a savings account
A payment made by a corporation to its shareholders, usually as a distribution of profits
The profit made from selling a stock
The fee paid for a mutual fund
14. What is ‘risk tolerance’?
The ability to avoid losses completely
The degree of variability in investment returns that an investor is willing to withstand
The ability to predict market movements
The willingness to invest in only safe assets
15. What is ‘asset allocation’?
The process of selecting individual stocks
The strategy of dividing investments among different asset categories to balance risk and reward
The act of buying and selling assets frequently
The method of calculating investment returns
16. What is a ‘portfolio’ in investing?
A single stock or bond
A collection of investments owned by an individual or institution
A type of mutual fund
A financial statement
17. What is ‘capital gain’?
The interest earned on a bond
The profit from the sale of an investment
The dividend paid by a company
The fee charged by a broker
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
