#1
Which of the following is considered a low-risk investment?
Stocks
Government bonds
Cryptocurrency
Commodities
#2
What does ROI stand for in finance?
Return on Investment
Rate of Interest
Risk of Inflation
Revenue of Income
#3
What is the primary purpose of a 401(k) retirement account?
To provide health insurance benefits
To invest in real estate properties
To save for retirement with tax advantages
To trade stocks actively
#4
What is a dividend yield?
The rate at which dividends are paid out to shareholders
The percentage return on investment from dividends
The price-to-earnings ratio of a dividend-paying stock
The annual growth rate of dividends
#5
What is the primary purpose of an exchange-traded fund (ETF)?
To invest in a diversified portfolio of assets
To provide loans to corporations
To issue new shares of stock to the public
To manage risk through derivative contracts
#6
What is diversification in investment?
Putting all your money into one type of investment
Spreading investments across different assets
Investing only in high-risk options
Investing without any plan
#7
What does P/E ratio indicate about a company's stock?
Profitability
Growth potential
Valuation
Liquidity
#8
What is the 'Rule of 72' used for in finance?
Calculating compound interest
Determining stock prices
Predicting market crashes
Estimating investment risk
#9
What is the primary goal of asset allocation?
Maximizing returns
Minimizing taxes
Diversifying risk
Increasing liquidity
#10
Which of the following is a characteristic of a growth stock?
High dividend yield
Stable earnings
Low price-to-earnings ratio
Potential for rapid price appreciation
#11
What is the primary objective of fundamental analysis?
Identifying undervalued stocks
Timing the market
Predicting short-term price movements
Analyzing historical trading patterns
#12
Which investment type typically provides a hedge against inflation?
Savings account
Real estate
Gold
Corporate bonds
#13
What does the term 'alpha' refer to in investment analysis?
Market return
Excess return above a benchmark
Risk-free rate
Beta coefficient
#14
What is the main purpose of a hedge fund?
To generate high returns for investors
To provide low-risk investment options
To diversify risk through various assets
To minimize taxes for investors
#15
What is the Sharpe ratio used for in investment analysis?
Assessing a company's debt levels
Evaluating a portfolio's risk-adjusted returns
Predicting market trends
Measuring a stock's volatility
#16
What is the 'efficient market hypothesis' in finance?
The belief that markets always reflect all available information
The theory that markets are inherently unpredictable
The idea that markets can be manipulated by large investors
The concept that market trends can be predicted using technical analysis
#17
What is the primary purpose of a trailing stop order?
To automatically sell a security when it reaches a certain price
To protect gains by adjusting the stop price as the stock price rises
To set a limit on the maximum loss that can be incurred
To track the performance of a benchmark index