Investing and Finance Quiz - FamilyEducation

Investing and Finance Quiz

It takes money to make money! How much do you know about investing and finance?

Quiz

It takes money to make money! How much do you know about investing and finance?

1. The strategy of investing in different kinds of assets to reduce risk is called:

  • Bi-polar investing
  • Dollar cost averaging
  • Diversification

2. The interest rate the Federal Reserve charges banks for short-term loans is the:

  • Discount rate
  • Prime rate
  • Periodic rate

3. In addition to setting interest rates, the Federal Reserve affects monetary policy through open market operations, which are the:

  • Buying or selling of U.S. government securities
  • Cash reserves each bank must keep on hand to satisfy consumer demand
  • Annual review of all stock market regulations, required by Congress

4. Beta measures the:

  • Volatility of a particular stock
  • Stability of a nation's monetary system
  • Financial worthiness of a company

5. Many financial advisers recommend DRIPs, which are:

  • Depreciating real income portfolios
  • Debt reduction incentive programs
  • Dividend reinvestment plans

6. When purchasing corporate bonds, investors:

  • Receive stock paying a fixed dividend
  • Earn tax-free interest income
  • Are making a loan to the company

7. A zero coupon bond would:

  • Not require a sales charge
  • Pay no interest until it matured
  • Be sold by the U.S. Treasury Department

8. The primary purpose of the International Monetary Fund is to:

  • Promote international monetary cooperation
  • Serve as a bank for the United Nations
  • Ensure that interest rates are the same in member nations

9. Offshore banks are:

  • Located in Caribbean nations
  • Exempt from International Monetary Fund regulation
  • Licensed by countries with minimal taxation and financial regulations

10. A brass plate bank is:

  • An established, blue chip institution
  • A bank authorized to sell insurance
  • A bank with no offices

1. The strategy of investing in different kinds of assets to reduce risk is called:
Diversification

2. The interest rate the Federal Reserve charges banks for short-term loans is the:
Discount rate

3. In addition to setting interest rates, the Federal Reserve affects monetary policy through open market operations, which are the:
Buying or selling of U.S. government securities

4. Beta measures the:
Volatility of a particular stock

5. Many financial advisers recommend DRIPs, which are:
Dividend reinvestment plans

6. When purchasing corporate bonds, investors:
Are making a loan to the company

7. A zero coupon bond would:
Pay no interest until it matured

8. The primary purpose of the International Monetary Fund is to:
Promote international monetary cooperation

9. Offshore banks are:
Licensed by countries with minimal taxation and financial regulations

10. A brass plate bank is:
A bank with no offices

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