Quiz: How much information do you know about investing

Have you or are you studying finance, economics, investing or banking on a regular basis and how much information do you recall from the study?

Quiz on investing

Take this quiz if you want to refresh your memory on investing.

What is inflation?

The rise in the general level of prices.
The uncertainty the return on an investment will deviate from what is expected.
The number of times something happens to money.
The projected value of an investment at the end of a specified time frame.
The rise in the general level of prices. Next question
Correct! Nicely done

Which of the following investment tools is considered to be a speculative investment?

Real Estate
Mutual Fund
Savings Bond
Futures
Futures Next question
Correct! Wow

Dufie wants to purchase stocks with the money she received from her tax return. Who would she contact to make the transactions?

A brokerage firm
A depository institution
The Ghana Stock Exchange
Any of the above
A brokerage firm Next question
Correct! Good

A blue chip stock is associated with a company:

With a consistent record of relatively rapid growth and earnings
With a spotty earnings pattern but potential for substantial earnings in the future
Which dominates its respective industry and has a good company management reputation
With a steady stream of income paying high dividends and retaining only a small portion of profits
Which dominates its respective industry and has a good company management reputation Next question
Correct! Nicely done

A growth stock is associated with a company:

That is new with a consistent record of relatively rapid growth and earnings
With a spotty earnings pattern but potential for substantial earnings in the future
Which dominates its respective industry and has a good company management reputation
With a steady stream of income paying high dividends and retaining only a small portion of profits
That is new with a consistent record of relatively rapid growth and earnings Next question
correct!

The value of a stock can change when:

Cedi value of a stock increases or decreases
A stock split occurs
A merger happens between two companies
All of the above
All of the above Next question
Correct! Great

What is a bond?

A type of debt that a company issues to investors for a specified amount of time
A share of ownership in a company
A type of investment that is only offered by depository institutions
A type of Certificate of Deposit with a higher than average interest rate
A type of debt that a company issues to investors for a specified amount of time Next question
Correct!

Which of the following is true in regards to investing in stock?

A stock investor may or may not receive a profit
A stock investor may receive a dividend
A stock investor owns a part of a company
All of the above
All of the above Next question
Correct! Great

A diversified portfolio is desirable because it:

Increases the risk/return ratio
Limits investors choices to only one or two investment tools
Indicates an investor is a good predictor of the return an investment will have
Decreases risk by investing money in a variety of investment tools
Decreases risk by investing money in a variety of investment tools Next question
Correct! Super

The relationship between risk and return in investing can be stated as:

Higher risk indicates lower return
Higher risk indicates higher return
Lower risk indicates higher return
No relationship exists between risk and return
Higher risk indicates higher return Next question
Correct! Bravo
Your score: Fail
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Your score: Distinction
You are going to do well in life!
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