How can investors receive compounding returns?
Investing

Quiz
•
Other
•
11th Grade
•
Medium
Brooke Martinez
Used 359+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
By selecting a savings account that has a higher interest rate
By investing their earnings back into their original investment
By transferring their earnings into a high-risk investment
By diversifying their investment portfolio
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Diversification is important in investing because…
It helps you to balance your risk across different types of investments.
It increases your overall risk, which guarantees that you will make more money.
It ensures that you only make low-risk investments.
It helps you gain the highest rate of return despite any risks.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Stock − Diversified mutual fund
Stock − Treasury bond − Diversified mutual fund
Treasury bond − Diversified mutual fund – Stock
Diversified mutual fund − Treasury bond − Stock
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is generally true about 401(k) and 403(b) retirement plans?
They are plans offered through employers.
They offer some tax benefits.
They restrict when you can withdraw your money.
All of the above
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary reason to issue stock?
To help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase investor awareness of the company
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a possible reason a company would sell stock?
To hire more people
To expand its business
To develop new technology
All of the above
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which is the largest stock exchange?
New York Stock Exchange
NASDAQ
Dow Jones
S & P 500
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