Investing Basics (High School)

Question 1

How does inflation impact investments?

Accepted Answer

Inflation makes the real rate of return lower

Question 2

Which of the following does NOT represent a capital gain?

Accepted Answer

Buying $20,000 in a stock that later sells for $20,000

Question 3

Bonds are money you loan to a business or government, to be paid back with interest.

Accepted Answer

True

Question 4

Like the name might suggest, ETFs are ...

Accepted Answer

Traded on the stock exchange like stocks

Question 5

If you own a share of stock, you ...

Accepted Answer

Own a part of a company

Question 6

Sometimes companies share their profits with shareholders, and we call those ________.

Accepted Answer

Dividends

Question 7

Which of the following is NOT a good scenario for considering more risk?

Accepted Answer

You are investing for a specific goal in 5 years

Question 8

You can "diversify" investments by buying ...

Accepted Answer

Several different types of investments

Question 9

If an investment has a very high expected return, what kind of risk is there for losing investment money?

Accepted Answer

High risk

Question 10

If you purchase $1,000 of a company’s shares and sell them for $1,500 5 years later, that's a rate of return of ____%.

Accepted Answer

50%

Question 11

If there are more buyers than sellers, the stock price would likely ...

Accepted Answer

Increase

Question 12

The price of a stock always matches its actual value.

Accepted Answer

False

Question 13

Which investment decision may have a better chance of a larger profit?

Accepted Answer

Diversify the money in several investments

Questions 13