Investing - Quiz Quiz

Question 1

A high-risk investment is characterized by

Revolt · Accepted Answer

C: a greater percentage chance of loss.

Question 2

What might convince an investor to buy stock or mutual funds?

Revolt · Accepted Answer

D: news that a company is about to release a promising product

Question 3

What is the definition of liquidity?

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B: how easily an investment can be exchanged for cash

Question 4

What is the relationship between risk and return?

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A: A higher risk often means a higher return.

Question 5

What is the definition of risk?

Revolt · Accepted Answer

C: possibility of losing money on an investment

Question 6

Someone who diversifies investments is more likely to

Revolt · Accepted Answer

B: offset their losses with gains.

Question 7

When investors purchase a commodity, they believe

Revolt · Accepted Answer

D: the commodity's price will go up after purchase.

Question 8

Which statements apply to a certificate of deposit (CD)? Choose two correct answers.

Revolt · Accepted Answer

B: It can be purchased for almost any amount.; E: It can be purchased from a banking institution.

Question 9

Which investment has the least liquidity?

Revolt · Accepted Answer

A: small business

Question 10

Which investment is best for someone who is likely to need cash soon?

Revolt · Accepted Answer

B: savings account

Investing - Quiz Quiz Answers