Investment Basics

Section Quiz

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  1. Which of the following factors affect the risk level of an investment?
  2. What is the fundamental difference between saving and investing?
  3. Which option would best diversify an investment portfolio?
  4. What factors should you consider when allocating money to an investment portfolio?
  5. Why is risk tolerance important in making investment decisions?
  6. Which of the following statements about stocks is false?
  7. Which statement best describes dividends?
  8. Which statement best describes mutual funds?
  9. Why do investors buy bonds?
  10. What is the fundamental difference between a Roth IRA and Traditional IRA?