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Finance & Investment Quiz

Finance & Investment Quiz

20 questions · Unlimited attempts · Free online practice

Finance is the study and management of money, assets, and liabilities over time, incorporating concepts of risk, return, and valuation. Investment involves allocating capital with...

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All 20 questions in this Finance & Investment quiz
  1. The investment strategy of buying a fixed dollar amount of a particular investment on a regular schedule, entirely regardless of the share price, is known as:

    • A. Dollar-cost averaging
    • B. Momentum investing
    • C. Value investing
    • D. Market timing
  2. 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
  3. What does the acronym IPO stand for in the stock market?

    • A. Initial Public Offering
    • B. Internal Portfolio Optimization
    • C. International Pricing Option
    • D. Index Performance Output
  4. 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)
  5. 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
  6. 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 epeer share
    • C. Payout ratio
    • D. Return on equity
  7. What is 'Variable Cost'?

    • A. Cost that doesn't change
    • B. Cost that changes with output
    • C. Salary
    • D. Rent
  8. 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
  9. What is 'Credit'?

    • A. Paying now
    • B. A fine
    • C. Ability to obtain goods before payment
    • D. Cash only
  10. What is a 'Bear Market'?

    • A. High volume
    • B. Falling prices
    • C. Stable prices
    • D. Rising prices
  11. What is 'Bear Market'?

    • A. No trade
    • B. Rising prices
    • C. Falling prices
    • D. Stable prices
  12. What is a 'Bear Market' characterized by?

    • A. Rising prices
    • B. Stable prices
    • C. Falling prices
    • D. No trading
  13. What is 'Net Profit'?

    • A. Oepeening balance
    • B. Total sales
    • C. Total revenue
    • D. Revenue minus all exepeenses
  14. What is 'Mortgage'?

    • A. Savings account
    • B. A tax
    • C. Credit card
    • D. Loan for proepeerty
  15. 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
  16. The highly illegal practice of buying or selling a public company's stock based on material information that is not yet available to the general public is called:

    • A. Front running
    • B. Wash trading
    • C. Insider trading
    • D. Market manipulation
  17. 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
  18. What is 'Stock Market'?

    • A. Place where shares of companies are traded
    • B. A farmers market
    • C. Place to buy groceries
    • D. A bank
  19. What is 'Profit'?

    • A. A tax
    • B. Financial gain
    • C. Money lost
    • D. Total revenue
  20. What is a 'Bull Market'?

    • A. Rising prices
    • B. Falling prices
    • C. Low volume
    • D. No movement