Basics
What is the main purpose of investing?
To grow your money over time
What type of investment is "digital money" like bitcoin?
Cryptocurrency
Higher reward usually means ___ risk.
Higher
A company like Apple grows financially, what logically happens to its stock prices?
It usually increases
Investing guarantees risk.
True or False?
False (as there is risk involved)
A mix of many stocks or bonds managed by professionals is called?
Mutual Funds
What is the balance between earning money and possibly losing money called?
Risk vs Reward
If you want a safe place to put money with predictable returns, where would you invest your money?
Bonds
If two people invest the same amount but one starts earlier, who likely ends with more and why?
The earlier investor - because money gets more time to grow
Why is real estate considered a long term investment?
Property values usually increase slowly over time
If someone wants high returns quickly, which type of investment will they likely choose?
If you do not have knowledge or time to select stocks, which investment is best?
Mutual funds (professionally managed)
What is the difference between saving and investing?
Saving is safe but grows slowly; Investing can grow more but has risk.
If you buy a stock of a company and the company performs badly, what eventually happens to your investment?
The value of the stock (investment) drops.
If you choose an investment that has minimal risk, what kind of returns should you logically expect?
Low Returns
If real estate needs a large amount of money to start, who might struggle to invest in it?
Beginners with limited savings.
If investing aims to make more money in the future, what is the one thing an investor must always accept?
Risk (that there is always some level of risk involved)
Are bonds the safest investment option? If yes, then why?
Yes, because you are lending money receiving fixed interest (coupon).
Why is putting all money in one investment considered risky?
Because if that one fails, you lose everything.
If an investor hopes for quick profit but cannot handle market fluctuations and sudden losses, which investment option should they avoid?
Cryptocurrency (because it is too volatile)