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Investing Basics
Investing Basics
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Everfi - Marketplaces Investing basics
Flashcards
20 cards
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Practice quiz
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Host live
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Questions
20
Answers
1
All of the transactions that occur in connected markets across different countries create...
Your country's economy
The stock market
The global economy
A goods and service market
2
Which of the following is NOT an example of investing in yourself?
Reading books about topics you want to learn more about.
Signing up for an online class.
Attending a school club in a subject that interests you.
Investing your money in the stock market.
3
Which of the following is NOT a consideration when determining your asset allocation?
Time horizon
Portfolio diversification
Risk tolerance
Personal financial health
4
A well-diversified portfolio needs about 20-25 stocks from different categories.
True
False
5
In finance, the acronym IPO stands for:
Interest Producing Obligation
Initial Public Offering
Investment Portfolio Option
Income Profit Opportunity
6
A ____ is a fixed income investment that represents a loan from an investor to a borrower.
Mutual Fund
Stock
Cash Equivalent
Bond
7
A(n) ___ fund is a mutual fund that is primarily invested in stocks.
Balanced
Capital
Equity
Money Market
8
The capital market is the market for...
Short-term money market investments.
Futures and forwards
Stocks and bonds
Currencies
9
A ____ account is an account you use to buy investments like stocks, bonds, and mutual funds.
full-service
checking
brokerage
savings
10
If an entrepreneur says they are using "bootstrap financing," what are they referring to?
They are looking for private investors for their company.
They took a bank loan to help pay for their startup costs.
They used their own money to start their business.
They are looking to go public on the stock market.
11
When a natural disaster happens, what usually happens to stock prices?
Stock prices in all industries go down
Stock prices in all industries go up
Stock prices go up in some industries and down in others
Not enough information
12
An investor with a short time horizon and low risk tolerance. Which mutual funds would be best?
Fixed income funds
Money market funds
All of these
Balanced funds with a high bond allocation
13
Which of the following is a disadvantage of going public?
Gaining public exposure for your company
Ability to attract many investors
Losing some control over company decisions
Ability to raise a lot of money
14
What is expansionary policy used for?
To discourage individuals from spending.
To stimulate growth in the economy.
To fight rapid inflation in the economy.
All of these.
15
_____ is the total value of all the goods/services produced in a country over a period of time.
The unemployment rate (UR)
The inflation rate (IR)
Gross domestic product (GDP)
Producer Price Index (PPI)
16
What is a stock exchange?
None of these
An organization that owns shares of stock.
A place where investors can buy and sell investments.
A bank that buys and sells different types of investments.
17
When would it be a good idea to invest your money instead of putting it in a savings account?
None of the these.
Looking to maintain the value of your money w/ little growth
When you won't need the money for a long time.
When you want to put your money somewhere safe.
18
If the government and Central Bank don't use economic policy, what could happen?
Prices could skyrocket, making goods more difficult to buy
GDP could rapidly fall, creating a recession in the economy
All of these
Unemployment could rapidly rise making it hard to find a job
19
The ___ phase in the business cycle is a period when the level of business activity declines.
Peak
Contraction
Expansion
Trough
20
When a company is attempting to go public, they will hire an investment bank to...
Create a prospectus
none of these
Figure out how much money to raise
Both of these
