🏠 Real Estate
Which investment involves buying a physical asset?
A. Stocks
B. Real Estate
C. Bonds
D. CDs
Answer: B. Real Estate
What do you own when you buy a stock?
A. A loan from a business
B. Property that appreciates in value
C. Ownership in a company
D. A high-yielding savings account
C. Ownership in a company
What is a bond?
A. Shareholder ownership in a company
B. Lending money to a government or company
C. Buying property as an investor
D. A high-yielding savings account
B. Lending money to a government or company
What does CD stand for?
A. Credit of Deposit
B. Certificate of Deposit
C. Cash Dividend
D. Capital Debt
B. Certificate of Deposit
What is the coupon rate?
A. The price of a stock
B. The interest rate paid on a bond
C. A bank fee
D. The total investment amount
B. The interest rate paid on a bond
How do most real estate investors make money?
A. Interest payments on homes
B. Rental income and property appreciation
C. Selling shares of homes
D. Fixed bank interest
Answer: B) Rental income and property appreciation
Stocks are best known for having:
A. Guaranteed returns
B. Low risk only
C. High risk and high reward
D. No growth
C. High risk and high reward
How do bond investors earn money?
A. Collecting Rent
B. Dividends only
C. Interest payments
D. Selling products
C. Interest payments
What must you do with money in a CD?
A. Spend it quickly
B. Invest in stocks
C. Keep it for a fixed term
D. Trade it on the stock market
C. Keep it for a fixed term
What is the maturity date?
A. When you first invest
B. When interest starts
C. When the investment ends and is paid back
D. When stocks are sold
C. When the investment ends and is paid back
What is a major disadvantage of real estate?
A. Low income potential
B. High liquidity in sales
C. High upfront cost and maintenance
D. No risk
C. High upfront cost and maintenance
What makes stocks highly liquid?
A. They are physical assets
B. They can be quickly bought and sold
C. They are locked for years
D. They pay fixed interest
B. They can be quickly bought and sold
Which bond type is generally the safest?
A. Corporate bonds
B. Junk bonds
C. Government bonds
D. Startup bonds
C. Government bonds
What happens if you withdraw money early from a CD?
A. Bonus interest
B. No change
C. Penalty fee
D. Stock conversion
C. Penalty fee
What is the principal?
A. The interest earned
B. The original amount invested
C. The total profit
D. The risk level
B. The original amount invested
Real estate is considered what type of investment in terms of liquidity?
A. Highly liquid
B. Moderately liquid
C. Low liquidity
D. Instant access
C. Low liquidity
What is a dividend?
A. A loan repayment that you make
B. A bank fee applied to your account
C. A payment to shareholders
D. A penalty for early withdrawal
C. A payment to shareholders
Why might investors choose to buy bonds?
A. For guaranteed high growth
B. For steady income with lower risk
C. To gain ownership in a company
D. For quick buying and selling
B. For steady income with lower risk
Why are CDs considered low risk?
A. High payment returns
B. Government insurance (FDIC)
C. Stock backing
D. Real estate ownership
B. Government insurance (FDIC)
What is diversification?
A. Selling investments quickly to liquidize funds
B. Avoiding all risk when investing
C. Spreading investments across different assets
D. Investing in one asset
C. Spreading investments across different assets
Which factor most strongly affects real estate value?
A. Social media trends
B. Location
C. Bank interest rates only
D. Stock prices
B. Location
Which investor is most likely to choose stocks?
A. Someone avoiding all risk
B. Someone seeking long-term growth
C. Someone needing an immediate guaranteed income
D. Someone avoiding market changes
B. Someone seeking long-term growth
Which best describes bond risk?
A. No risk at all
B. Only market risk
C. Payout risk depending on the issuer
D. Only inflation risk
C. Payout risk depending on the issuer
What is the biggest disadvantage of CDs?
A. High risk
B. No returns
C. Lack of liquidity
D. High volatility
C. Lack of liquidity
The Dow Jones, NASDAQ, New York Stock Exchange, and S&P 500 are all examples of:
A. Purchaseable Stocks
B. Different Investment Banks
C. Stock market indicators
D. Real estate companies
C. Stock market indicators