OSU Extension Let's Talk Money - Welcome to the Investing Quiz

Let's Talk Money Website Logo

Home

About This Site

Contact Info

Link to OSU Extension

Welcome to the Investing Quiz

This is an opportunity for you to learn about investing including information about stocks, bonds mutual funds and Individual Retirement Accounts (IRA).

Directions: Mark your selection, choosing the best answer for each of the eight questions in this quiz. Then submit your quiz. You will receive back a graded copy of your answers with additional information about each topic in the quiz.

You should use your mouse or TAB key to move from field to field within the form. Some browsers may cause the form to be submitted prematurely if you use the ENTER key.

1. Savers and investors have different goals for their money.

	a. True
	b. False

2. Stock is generally owned for what reason?

	a. Fixed Income
	b. Short potential
	c. Growth Potential
	d. All of the Above

3. When an individual wishes to invest in a mutual fund it is most important to know which of the following?

	a. The stock/equity funds that are available
	b. What fees and commissions you are required to pay
	c. How to track the interest rate in the national newspapers
	d. How to invest using the computer

4. Mutual funds are a great investment and have advantages for some people at some times. However, identify which of the following is a disadvantage of mutual funds.

	a. A professional manages your account with ongoing fees
	b. There are multiple withdrawal options
	c. There is a potiential for reinvestment of income and capital gains
	d. There are options for switching investments within the same fund family

5. Bonds are generally a less risky investment than stocks. Which of the following type of bonds is the least risky?

	a. U.S. Government Bonds
	b. Speciality Bonds
	c. Municipal Bonds
	d. Corporate Bonds

6. All of the following are advantages of bonds, except:

	a. Offer a hedge against inflation
	b. Offer regular income
	c. Needs less careful attention in management than other alternative investments
	d. Pay higher interest than savings Accounts

7. The maximum amount an individual under 50 years of age may contribute to an Individual Retirement Account (IRA) per year is:

	a. $1,000
	b. $2,000
	c. $3,000
	d. $4,000

8. What are the advantages of the Roth IRA over the Traditional IRA:

	a. Roth IRA does not have to be withdrawn starting at any age
	b. With the Roth, the beneficiary may be able to continue income tax free status
	c. Calculations prepared as examples for case studies determined that the Roth IRA provides more income during retirement than other alternatives
	d. The Roth eliminates federal income tax on earnings and growth
	e. All of the Above

About This Website | Accessibility | Contact Information
Non-Discrimination Statement