Investing and Financial Markets Quiz (W!se 7:1)

Investing and Financial Markets Quiz (W!se 7:1)

12th Grade

20 Qs

quiz-placeholder

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Investing and Financial Markets Quiz (W!se 7:1)

Investing and Financial Markets Quiz (W!se 7:1)

Assessment

Quiz

Business

12th Grade

Easy

Created by

Rachel Loughlin

Used 6+ times

FREE Resource

20 questions

Show all answers

1.

DRAG AND DROP QUESTION

1 min • 5 pts

Media Image

EASILY being able to access - checking account or savings account - your money has...​ ​​ (a)  

HIGH liquidity
LOW liquidity
Initial Investment + Interest
interest

Answer explanation

Media Image

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

Media Image

NOT being able to access - stocks or bonds - your money easily is...​ ​​ (a)  

LOW liquidity
HIGH liquidity
Initial Investment + Interest
interest

Answer explanation

Media Image

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

Media Image

What is the long term value of investing?

Short term gains

Buying luxury items

Building wealth and achieving goals

Answer explanation

Media Image

The purpose of investing is increase assets and wealth over time.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

To buy an investment fund (like a mutual fund), you must buy it through...

Brokerage Account

Credit Union Account

Answer explanation

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  • 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

Media Image

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

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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

Media Image

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

Media Image

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

Media Image

What is the purpose of a stock exchange?

To sell collectables

To buy and sell real estate

To trade stocks and bonds

Answer explanation

Media Image
  • 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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