#1
Which of the following is considered a low-risk investment?
Stocks
Bonds
Cryptocurrency
Commodities
#2
What does the term 'ETF' stand for in finance?
Estimated Trade Fraction
Electronic Trading Fund
Exchange-Traded Fund
Equity Trust Fund
#3
What does the term 'ROI' stand for in finance?
Rate of Interest
Return on Investment
Risk of Inflation
Revenue over Inflation
#4
Which of the following is NOT a type of bond?
Treasury bond
Municipal bond
Corporate bond
Stock bond
#5
What is the primary function of a stock exchange?
To provide financial advice to investors
To facilitate the buying and selling of securities
To issue government bonds
To offer mortgage loans to homebuyers
#6
What is the main purpose of diversification in investment portfolios?
To minimize taxes
To maximize returns
To reduce risk
To increase volatility
#7
What financial instrument represents ownership in a corporation?
Derivatives
Bonds
Stocks
Mutual Funds
#8
What is the purpose of a call option in options trading?
To sell an asset at a specified price before a specified date
To buy an asset at a specified price before a specified date
To buy an asset at the market price
To sell an asset at the market price
#9
Which of the following is a characteristic of a mutual fund?
High liquidity
Limited diversification
Passive management
Pooled investment
#10
In finance, what is the purpose of a stop-loss order?
To limit the maximum loss on an investment
To maximize profits on an investment
To buy securities at the current market price
To sell securities at the current market price
#11
What is the term for the price at which an investor can sell an asset in the financial market?
Bid price
Ask price
Strike price
Market price
#12
Which investment strategy involves buying and holding securities for the long term, regardless of market fluctuations?
Day trading
Swing trading
Value investing
Arbitrage
#13
What is the primary function of an investment bank?
Accepting deposits from the public
Providing loans to individuals
Facilitating mergers and acquisitions
Issuing credit cards
#14
What is the purpose of the Sharpe ratio in finance?
To measure the risk-adjusted return of an investment
To calculate the total return of an investment
To determine the market capitalization of a company
To assess the liquidity of an investment
#15
Which of the following is NOT a factor that affects the price of options?
Underlying asset price
Time to expiration
Interest rates
Market volatility
#16
What is the main purpose of a hedge fund?
To provide loans to small businesses
To invest exclusively in real estate
To generate high returns for investors using various strategies
To offer low-risk investments for retirees
#17
Which of the following is a characteristic of a hedge fund?
High liquidity
Limited diversification
Passive management
Highly active management