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Finance & Investment Quiz

Finance & Investment · Expert

20 questions · Unlimited attempts · Free online practice

Money affects almost every part of our lives, from buying a home and starting a business to saving for retirement or planning a vacation. Understanding finance and investment helps...

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All 20 questions in this Finance & Investment quiz

What is 'Bonds'?
- A. Debt instruments/loans to gov or firms
- B. Shares in a company
- C. Cash
- D. Gold
High-yield, high-risk debt securities issued by companies with very poor credit ratings are colloquially known as:
- A. Treasury bills
- B. Municipal bonds
- C. Junk bonds
- D. Premium bonds
What is 'Venture Capital'?
- A. Personal savings
- B. Funding for startups/new firms
- C. Government debt
- D. Money for old firms
In finance, how quickly and easily an asset can be converted into ready cash without heavily affecting its market price is formally known as its:
- A. Volatility
- B. Solvency
- C. Elasticity
- D. Liquidity
What is 'Fixed Cost'?
- A. Cost that changes with output
- B. Price of a product
- C. Cost of labor
- D. Cost that remains constant regardless of output
What is 'Blue Chip' stock?
- A. Penny stock
- B. New company
- C. High risk
- D. Reliable/Established company
A financial ratio that explicitly shows how much a company pays out in dividends each year relative to its current stock price is the:
- A. Dividend yield
- B. Earnings per share
- C. Payout ratio
- D. Return on equity
What is 'Stock Market'?
- A. Place where shares of companies are traded
- B. A farmers market
- C. Place to buy groceries
- D. A bank
What is 'Profit'?
- A. A tax
- B. Financial gain
- C. Money lost
- D. Total revenue
How is a company's market capitalization (market cap) calculated?
- A. By subtracting its total liabilities from its total assets
- B. By multiplying its annual revenue by its profit margin
- C. By multiplying its current share price by its total number of outstanding shares
- D. By dividing its net income by the number of outstanding shares
A massive, nationally recognized, well-established, and highly financially sound company that has a long record of stable earnings and reliable dividend payments is known as a:
- A. Growth stock
- B. Blue-chip stock
- C. Penny stock
- D. Meme stock
What is compound interest?
- A. Interest calculated only on the initial principal
- B. Interest calculated on the initial principal and all accumulated interest
- C. A fixed fee charged for borrowing money
- D. The rate central banks charge commercial banks
A company that owns, operates, or finances income-generating real estate and allows retail investors to buy shares in its portfolio is called a:
- A. Mortgage Backed Security (MBS)
- B. Collateralized Debt Obligation (CDO)
- C. Special Purpose Acquisition Company (SPAC)
- D. Real Estate Investment Trust (REIT)
What is a 'Bear Market' characterized by?
- A. Rising prices
- B. Stable prices
- C. Falling prices
- D. No trading
What is an investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks and bonds?
- A. A real estate investment trust (REIT)
- B. A certificate of deposit (CD)
- C. A mutual fund
- D. A collateralized debt obligation (CDO)
Financing provided by investors to startup companies and small businesses that are believed to have massive long-term growth potential is called:
- A. Factoring
- B. Venture capital
- C. Reverse factoring
- D. Mezzanine debt
What are financial derivatives?
- A. Stocks issued by newly formed startup companies
- B. Financial contracts whose value is derived from the performance of an underlying asset
- C. Bonds issued directly by local municipalities for infrastructure
- D. Dividends paid out in the form of additional shares rather than cash
A graphical representation showing the mathematical relationship between interest rates and the maturities of different government bonds is called the:
- A. Yield curve
- B. Phillips curve
- C. Lorenz curve
- D. Laffer curve
What is 'Liability'?
- A. Something a person or company owes
- B. A profit
- C. An investment
- D. An asset
The fundamental risk management strategy of mixing a wide variety of investments within a portfolio to completely minimize exposure to any single asset is known as:
- A. Hedging
- B. Arbitrage
- C. Leveraging
- D. Diversification

Finance & Investment Quiz

Finance & Investment · Expert

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What is 'Bonds'?

High-yield, high-risk debt securities issued by companies with very poor credit ratings are colloquially known as:

What is 'Venture Capital'?

In finance, how quickly and easily an asset can be converted into ready cash without heavily affecting its market price is formally known as its:

What is 'Fixed Cost'?

What is 'Blue Chip' stock?

A financial ratio that explicitly shows how much a company pays out in dividends each year relative to its current stock price is the:

What is 'Stock Market'?

What is 'Profit'?

How is a company's market capitalization (market cap) calculated?

A massive, nationally recognized, well-established, and highly financially sound company that has a long record of stable earnings and reliable dividend payments is known as a:

What is compound interest?

A company that owns, operates, or finances income-generating real estate and allows retail investors to buy shares in its portfolio is called a:

What is a 'Bear Market' characterized by?

What is an investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks and bonds?

Financing provided by investors to startup companies and small businesses that are believed to have massive long-term growth potential is called:

What are financial derivatives?

A graphical representation showing the mathematical relationship between interest rates and the maturities of different government bonds is called the:

What is 'Liability'?

The fundamental risk management strategy of mixing a wide variety of investments within a portfolio to completely minimize exposure to any single asset is known as: