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- 1. Multiple Choice
Which best describes the role that government and business play in investments?
They both receive capital to use for growth.
They DO NOT receive capital to use for growth.
- 2. Multiple Choice
Which best describes an investor’s primary goal?
to earn a profit
to lose a profit
- 3. Multiple Choice
Which term refers to the possibility of an investor losing some or all of an investment?
risk
probability
- 4. Multiple Choice
Which is true about investments and risk?
Every investment carries some degree of risk.
NOT Every investment carries some degree of risk.
- 5. Multiple Choice
Which statement best describes how an investor makes money off debt?
An investor makes money by earning interest.
An investor DO NOT make money by earning interest.
- 6. Multiple Choice
Capital appreciation refers to
the increased value of an asset.
The decreased value of an asset.
- 7. Multiple Choice
Which can be traded in a commodities market?
oil
cars
- 8. Multiple Choice
Are the buying and selling of stocks centralized activities? Why or why not?
No, there are many stock markets around the world, and they are independent of one another.
Yes, the New York Stock Exchange is the principal exchange for the nations of the world.
- 9. Multiple Choice
Once stocks are on the market, which best explains how their prices are set?
Prices fluctuate on the basis of demand.
Prices DO NOT fluctuate on the basis of demand.
- 10. Multiple Choice
Which best describes what generally occurs in financial markets?
Assets are traded.
I have no idea
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