Investing Quiz - Basics of Investing for Beginners Module

This is a quiz for your investment and financial planning. Take investing quiz questions with answers to test your knowledge on “Basics of Investing for Beginners module”. In today’s world finance and investment knowledge is very important for well-being, and lack of financial and investment knowledge is not acceptable at personal and organization level. Let us check are you ready to control of your investments?

Let us check how much do you understand about what is investment, investment objectives along with types of investing risks. In this course we have also learned about important thumb rules for investing, how to invest in stocks, how to calculate returns and how can you become smart and successful investor. We have also seen how to calculate simple and compounding interest and also rules for compounding interest. Most important is that, now we know the difference between trading, investment and Speculation? Take a quiz at the end of “Investing for Beginners tutorial course” and test your knowledge on investment related matters and scenarios.

Table of Contents

Investing Quiz – Investing for Beginners

Q1. Why people look forward for an investment opportunites. What is the basic motive behind that?

1: Generating and preserving capital wealth.

2: Investing for retirement plans.

3: Investing to give bright future to children.

4: All of the Above.

Q1. Answer

All of the Above.

Q2. Why is investment important for individual growth?

1: To beat growing inflation rate.

2: Building capital for next generation.

3: To achieve financial goals quickly.

4: All of the Above.

Q2. Answer

All of the Above.

Q3. What are the different ways to invest money?

1: Debts / Bonds / Fixed income deposits].

2: Stock Market / Mutual funds.

3: Assets or Real Estate.

4: Commodities (Gold / Silver / Other Precious Metals).

5: All of the Above.

Q3. Answer

All of the Above.

Q4. Which investments will help you to reach your financial retirement goals?

1: Investing in purchasing vehicle.

2: Investing in purchasing gold or other precious metals.

3: Investing in purchasing assets (For eg: House).

4: Investing in shopping fashion style.

Q4. Answer

Investing in purchasing gold or other precious metals.

Q5. When you are new to investment, what are the legal verification checks need to conduct?

1: Check company details.

2: Check company website.

3: Check license of the company.

4: All of the Above.

Q5. Answer

All of the Above.

Q6. What are the common risks involved when you choose any investment options?

1: Risk of reputation.

2: Risk of capital investment.

3: Risk of returns with growing inflation rate.

4: Risk of taxation.

Q6. Answer

Risk of capital investment.

Q7. What is the ideal age of investment for early retirement?

1: 30-40 years.

2: 20-30 years.

3: 40-50 years.

4: 50-60 years.

Q7. Answer

20-30 years.

Q8. What is the right attitude required to improve your investment and investing skills?

1: Positive Attitude.

2: Negative Attitude.

3: Pridefulness Attitude.

4: Affective Attitude.

Q8. Answer

Positive Attitude.

Q9. In what circumtances you should borrow the money for investment?

1: When you are beginner or amateur investor.

2: When you are expert in investment.

Q9. Answer

When you are expert in investment.

Q10. What are the thumb rules of investment one should consider?

1: Diversify your investment.

2: Identifying investment options.

3: Take an investment tips.

4: Review your portfolio periodically.

Q10. Answer

Diversify your investment, Identifying investment options and Review your portfolio periodically.

Q11. What are the basic types of interest used for calculating future returns?

1: Compound Interest.

2: Affective Interest.

3: Simple Interest.

4: Scalable Interest.

Q11. Answer

Simple Interest and Compound Interest.

Q12. What are the steps required to be smart investor?

1: Be aware of investment process.

2: Stick to your drafted investment plan.

3: Review and monitor your invesment returns.

4: All of the Above.

Q12. Answer

All of the Above.

Q13. Rule of 114: If the inflation rate is growing every year with the average rate of 7% then how many years are required for inflation rate to get tripled?

1: 12.

2: 22.

3: 16.

4: 9.

Q13. Answer

16.

Q14. Rule of 72: If you borrow money for investment at the rate of 18% then your re-payement amount will get doubled in how many years?

1: 4.

2: 2.

3: 6.

4: 8.

5: 10.