Which of the following is a characteristic of a Certificate of Deposit (CD)?

It is a low-risk investment where money is deposited for a fixed period

What is the purpose of a stock split?

To reduce the stock price while maintaining a company's total market value

Which of the following is a difference between a HYSA and a money market account?

A HYSA limits the amount of withdrawals, while a money market doesn't

What does “dividend” mean?

A company’s profit shared with shareholders

What does it mean to short a stock?

Betting that a stock’s price will go down

What does "liquidity" in the stock market refer to?

How easy an asset is to convert to cash

What does a stock’s “P/E ratio” measure?

The share price compared to its earnings per share

Which of the following is an example of a "blue-chip" stock?

A stock from a well-established company with reliable performances

Which of the following describes microfinancing?

Money loaned to people in developing areas at zero interest

What is a "limit order" in trading?

An order to buy/sell at a specific price or better

Which of the following is a potential risk of investing in international stocks?

Political and economic instability in foreign market

What is the main difference between an ETF (Exchange-Traded Fund) and a mutual fund?

ETFs trade all day, while mutual funds trade once daily

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SMC Q2 Quiz

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Answers

1
Which of the following describes a benefit of a money market over a checking account?
The ability to use a debit card from the account
Higher interest rates
High minimum balances
FDIC insurance
2
Which of the following is a characteristic of a Certificate of Deposit (CD)?
It is a low-risk investment where money is deposited for a fixed period
It offers high liquidity and no penalties for early withdrawal
It is a type of stock investment with fluctuating returns
It allows access to the invested amount at any time without penalty
3
What is a bond?
A loan taken out by a company
A fund that tracks home mortgages
A special type of stock
A pool of money from many investors
4
What is the purpose of a stock split?
To increase the stock price to attract more investors
To reduce the stock price while maintaining a company's total market value
To issue new stocks to the public to raise additional capital
To eliminate low-value shares and consolidate the company's capital
5
Which of the following is a difference between a HYSA and a money market account?
A HYSA limits the amount of withdrawals, while a money market doesn't
A money market account has a high minimum balance, while a HYSA doesn't
Money market accounts often pay a higher interest rate than a HYSA
A HYSA is not insured by the FDIC, while money market accounts are
6
What does “dividend” mean?
A decrease in stock price
A company’s profit shared with shareholders
A type of bond
A stock’s price divided by its earnings symbol
7
What does it mean to short a stock?
Selling a stock at its highest price
Betting that a stock’s price will go down
Buying stocks in small quantities
Buying a stock and holding it
8
Which of the following is NOT one of the three main rating agencies for bonds?
Dun & Bradstreet
Fitch
Moody’s
Standard and Poor’s
9
Which of the following is not a member of the magnificent seven?
Nvidia
Tesla
Apple
Intel
10
What does "liquidity" in the stock market refer to?
The profitability of a company
How easy an asset is to convert to cash
A company's cash reserves
The volatility of a stock relative to the rest of the market
11
What animal represents the Lunar New Year in 2025?
Ox
Tiger
Dragon
Snake
12
Which player recently signed the largest contract in sports history?
Shohei Ohtani
Josh Allen
Juan Soto
Joe Burrow
13
Which of the following companies was most recently added to the Dow Jones?
Nvidia
Cisco Systems
American Express
Intel
14
What does the VIX index measure?
The strength of the U.S. dollar
The total volume of stock trades
Stock market volatility
The number of companies in the S&P 500
15
What measure did NYC implement to reduce the amount of traffic?
Increase the price of gas
Congestion tolls
Close off certain roads
Limiting the number of cars that can drive per day
16
What type of tax is President Trump implementing on countries like Colombia and China?
Tariffs
Sales tax
Embargo
Personal income taxes
17
What does a stock’s “P/E ratio” measure?
The number of dividends paid per year
How much profit a company makes
The total number of shares available
The share price compared to its earnings per share
18
What is an IPO?
International Portfolio Option
Initial Public Offering
Investment Portfolio Opportunity
Individual Profit Outlook
19
Which of the following is an example of a "blue-chip" stock?
A stock from a startup company with high potential growth
A stock from a new, high-risk IPO (Initial Public Offering)
A stock from a company in the technology sector experiencing rapid growth
A stock from a well-established company with reliable performances
20
Which company has a bond rating of AAA?
Netflix
Apple
Microsoft
US Treasury
21
If a company has a high P/E ratio compared to the industry average, what does it suggest?
The company is undervalued
It pays high dividends
The company has a lot of debt
The company may be overvalued
22
Which of the following describes microfinancing?
A small loan given to people buying a house
An investment made in small companies to generate growth
Money loaned to people in developing areas at zero interest
A large, low-interest loan given to low-income individuals
23
What is a "limit order" in trading?
An order to buy/sell at a specific price or better
A restriction on the number of shares you can buy
A question on Veer’s math test
An order that executes at the current market price
24
Which of the following is NOT a stock exchange?
S&P 500
BSE
NASDAQ
LSE
25
Which of the following is a potential risk of investing in international stocks?
Diversification of portfolio
Guaranteed higher return
Political and economic instability in foreign market
Avoidance of currency exchange fluctuations
26
What is the name of the Chinese AI that threatens US tech companies in 2025?
Gemini
Deepseek
Bard
Deepdot
27
What is the main difference between an ETF (Exchange-Traded Fund) and a mutual fund?
ETFs trade all day, while mutual funds trade once daily
Mutual funds are for institutions, ETFs are for individuals
Mutual funds have lower management fees than ETFs
ETFs are only for stocks, while mutual funds invest in stocks and bonds
28
What is dollar-cost averaging?
Only investing during market crashes
Buying stocks all at once
Investing regularly over time
Selling stocks daily
29
Which agency insures deposits held in credit unions?
FTC
SEC
NCUA
FDIC
30
If interest rates increase, what will happen to the price of a previously issued bond on the secondary market?
The price is not related to the interest rate
The price will increase
The price will decrease
The price will stay the same

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