Investing 101: Chapter 1

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Intro to Investment basics.

Nur Ain Ahmad Yatim Mustafa

Malaysia

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Investing 101: Chapter 1


Investing 101: Chapter 1Version en ligne Intro to Investment basics. par Nur Ain Ahmad Yatim Mustafa 1 What is an investment? a Saving with no risk b Borrowing money for consumption c Spending on daily needs d Allocating funds to earn a return 2 Which asset typically involves ownership? a Commodities futures b Savings accounts c Stocks d Bonds 3 What does diversification reduce? a Liquidity b Return c Tax d Risk 4 What is a bond? a A real estate deed b Insurance policy c A loan to a company or government d Equity share in a company 5 What is liquidity? a Credit score b Profit earned c Market risk d Ease of converting to cash 6 Which factor is part of risk tolerance? a Age only b No time horizon c Willingness to lose money d Guaranteed returns 7 What is a primary goal of investing? a Short-term gambling b Spend all savings c Avoid all risk d Grow wealth over time 8 Which time horizon suits long-term investing? a 5+ years b 3 days c 1 week d Immediate 9 Which is a common investment risk? a Flavor risk b Color risk c Market risk d Weather risk 10 What is compound interest? a Interest earned on interest b Simple interest only c Penalty fees d Depreciation