Investing and Financial Markets — Unit test

Question 1

Which statement best describes how an investor makes money off debt?

Revolt · Accepted Answer

An investor makes money by earning interest.

Question 2

Which factors can affect a stock’s price? Check all that apply.

Question 3

best

Revolt · Accepted Answer

They both receive capital to use for growth.

Question 4

Capital appreciation refers to

Revolt · Accepted Answer

the increased value of an asset.

Question 5

How do bonds generate income for investors?

Revolt · Accepted Answer

Bonds pay a specified amount to the investor at maturity.

Question 6

best

Revolt · Accepted Answer

by selling the asset for a profit

Question 7

Which best describes what a market index does?

Revolt · Accepted Answer

An index measures market performance.

Question 8

Which types of investments are securities?

Revolt · Accepted Answer

both debt and equity

Question 9

What can be traded in a commodities market?

Revolt · Accepted Answer

oil

Question 10

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Investing and Financial Markets — Unit test Answers