Finance Quiz

1. What is the term for a type of investment that involves purchasing ownership in a company?
Stock
Bond
Certificate of deposit
2. What is the term for the amount of money that a borrower pays a lender for the use of borrowed funds?
Yield
Interest
Principal
3. What is the term for the process of creating a budget and managing one's money to achieve financial goals?
Finance
Personal finance
Accounting
4. What is the term for the percentage of an investment that is paid out in the form of interest or dividends?
Yield
Coupon rate
Capital gain
5. What is the term for the measure of how much an asset's price changes in response to changes in interest rates?
Convexity
Yield to maturity
Duration
6. What is the term for the price at which an investor can sell an underlying asset in a financial derivative contract?
Strike price
Spot price
Market price
7. What is the term for a type of investment that pools money from multiple investors and uses it to purchase a diversified portfolio of assets?
Exchange-traded fund
Mutual fund
Real estate investment trust
8. What is the term for the total amount of money that a borrower owes on a loan, including both the principal amount and interest?
Principal
Loan balance
Interest rate
9. What is the term for the practice of spreading investments across different asset classes to reduce risk?
Concentration
Speculation
Diversification
10. What is the term for the measure of how much an asset's price changes in response to changes in the overall market?
Beta
Alpha
Standard deviation
11. We should keep our savings with banks because
Can be withdrawn anytime
It is safe
Both
12. What is the term for a type of investment that provides a fixed rate of return for a fixed period of time?
Stock
Bond
Mutual fund
13. What is the term for the amount of money that an investor puts into an investment?
Principal
Return on investment
Interest
14. What is the term for the amount of money that a borrower must pay back to a lender over time, usually in equal installments?
Interest
Principal
Amortization
15. What is the term for the measure of how quickly an asset can be converted into cash without affecting its market price?
Solvency
Liquidity
Profitability