InvestSmart FSM 2018
InvestSmart FSM 2018 Quiz
Test your knowledge of investment products and principles with our engaging quiz! This quiz is designed to assess your understanding of essential investment topics such as ETFs, risk versus return, and portfolio diversification.
- 12 thought-provoking multiple-choice questions
- Gain insights on investments and finance
- Perfect for beginners and experienced investors alike
Which of the following is not true of ETFs?
It is a marketable security that tracks an index, a commodity, bond, or a basket of assets like an index fund
Unlike mutual funds, ETF trades like a common stocks on a stock exchange
The supply of ETF shares are regulated through a mechanism known as creation and redemption
There are minimum deposit requirements for purchasing ETFs
Which of the following is not true of ETFs?
It is a marketable security that tracks an index, a commodity, bond, or a basket of assets like an index fund
Unlike mutual funds, ETF trades like a common stocks on a stock exchange
The supply of ETF shares are regulated through a mechanism known as creation and redemption
There are minimum deposit requirements for purchasing ETFs
The relationship between price and yield is that...
If price goes up, yield goes down
If price goes up, yield remains the same
If price goes up, yield goes up
There is no correlation between price and yield
Which of the following financial products could be compared to a form of “reverse life insurance”?
Futures
Options
Annuities
Fixed Income
Malcolm received an unexpected phone call from Tokyo offering a once in a lifetime opportunity to invest in offshore options trading, promising returns of more than 30%. He needs to act quickly as there are only limited opportunities available. What should he do?
Invest his money before he misses out
Hang up the phone immediately
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 relatioship exists between risk and return
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
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
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
Which of the following investment tools is considered to be a speculative investment?
Real Estate
Mutual Fund
Savings Bond
Futures
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.
Which is the better example of a diversified portfolio?
Owning shares, keeping cash in a term deposit and owning an investment property
Owning shares in three different mining companies
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