Investing Knowledge Quiz

1. What does investing mean?

   Putting money into a bank savings account
   Buying assets like stocks or bonds to grow your money over time
   Spending money on everyday expenses

2. What is a stock?

   A loan you give to a company
   Ownership in a company
   A government bond

3. Which of the following is NOT a stock exchange?

   New York Stock Exchange (NYSE)
   Nasdaq
   Federal Reserve Bank

4. What does diversification mean?

   Investing all your money in one stock
   Spreading your investments across different asset types to reduce risk
   Avoiding investing altogether

5. Which investment option generally offers the highest long-term growth potential?

   Stocks
   Bonds
   Cash equivalents

6. What is inflation risk?

   The risk that your investments lose value because of rising prices
   The risk of losing money by selling too early
   The risk of investing in the wrong company

7. Which investment type may have liquidity risk?

   Real estate
   Stocks
   Money market funds

8. Why is investing for the long term recommended?

   Because markets tend to recover and grow over time
   Because it avoids all investment risks
   Because short-term trading always loses money

9. What should you do before investing in a product you don’t understand?

   Invest a small amount and see what happens
   Ask questions and do research to understand it better
   Avoid investing altogether

10. What is one key benefit of mutual funds and ETFs for beginners?

    They allow investing in many assets at once, spreading risk
    They guarantee high returns with no risk
    They are only for professional investors

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