EASILY being able to access - checking account or savings account - your money has... (a)
Investing and Financial Markets Quiz (W!se 7:1)

Quiz
•
Business
•
12th Grade
•
Easy
Rachel Loughlin
Used 6+ times
FREE Resource
20 questions
Show all answers
1.
DRAG AND DROP QUESTION
1 min • 5 pts
Answer explanation
An asset that can be sold rapidly for its full value is said to be highly liquid.
vs.
An asset that takes significant time to sell, or one that can only be sold at a discounted value, is considered less liquid or illiquid.
2.
DRAG AND DROP QUESTION
1 min • 5 pts
NOT being able to access - stocks or bonds - your money easily is... (a)
Answer explanation
An asset that takes significant time to sell, or one that can only be sold at a discounted value, is considered less liquid or illiquid.
vs.
An asset that can be sold rapidly for its full value is said to be highly liquid.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the long term value of investing?
Short term gains
Buying luxury items
Building wealth and achieving goals
Answer explanation
The purpose of investing is increase assets and wealth over time.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To buy an investment fund (like a mutual fund), you must buy it through...
Brokerage Account
Credit Union Account
Answer explanation
A brokerage account is an investment account used to trade assets such as stocks, bonds, mutual funds and ETFs.
There are two brokerage account options that meet the needs of most investors: online brokers and robo-advisors.
Brokerage accounts are good for saving for short-term goals, while tax-advantaged accounts are better for retirement savings.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the historical results of stocks compared to other investments? In other words, how has the stock market performed overall in comparison to say investing in real estate or coins?
Outperformed other investments
Performed the same as other investments
Underperformed other investments
Answer explanation
Historically, the stock market has gone up more years than it has gone down.
The S&P 500 gained value in 40 of the past 50 years, generating an average annualized return of 9.4%.
In general, when people say "the stock market," they mean the S&P 500 index. The S&P 500 is a collection -- referred to as a stock market index -- of just over 500 of the largest publicly traded U.S. companies.
SOURCE: https://www.fool.com/investing/how-to-invest/stocks/average-stock-market-return/
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the difference between a broker and a financial planner?
They are the same
Brokers focus on insurance, financial planners focus on stocks
Brokers execute trades, financial planners provide overall financial advice
Answer explanation
A stockbrokers' primary duty is to execute trades, achieving best execution, on behalf of clients.
Financial advisors give out general and specific financial advice for a fee and may manage client assets and portfolio construction.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of a stock exchange?
To sell collectables
To buy and sell real estate
To trade stocks and bonds
Answer explanation
A stock exchange is a centralized location that brings corporations and governments so that investors can buy and sell equities.
Auction-based exchanges such as the New York Stock Exchange allow traders and brokers to physically and verbally communicate buy and sell orders.
Electronic exchanges take place on electronic platforms, so they don't require a centralized physical location for trades.
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