Quizzes

Quizzes

Investor Information

Test Your Investment Knowledge

Do you have enough knowledge to make informed investment decisions? This quiz can help you find out.

    1. When interest rates go up, what happens to bond prices?

        They go up

        They go down

       They stay the same

    2. A no-load mutual fund involves no sales charges or fees.

       True

       False

    3. When an investor diversifies his investments, does the risk of losing money     increase or decrease?

       It increases

       It decreases

       The risk of losing money does not change

    4. The Securities Investor Protection Corp. (SIPC) protects investments up to $500,000 if the stock market goes down.

       True

       False

    5. If you lose money in a mutual fund bought from a bank, the Federal Deposit Insurance Corp. will cover your losses.

       True

       False

    6. From 1965 to 1995, which investments provided the highest rate of return?

       stocks

       bonds

       savings accounts

       certificates of deposit

    7. What is a blue chip stock?

       It is a stock offered by a high-tech company

       It is a stock of a large, established company

       It is a stock of a security priced less than a dollar a share

    8. How are most full-service brokers and financial planners paid?

       Based on the quality of advice they offer and how much their clients earn

       Based on the amount and type of investments they sell to their clients

This information is based on a recent public opinion survey commissioned by the Investor Protection Trust, an investor education group based in Arlington, VA.

Answers:

1. They go down;  2. False; 3. It decreases;  4. False; 5. False; 6. Stocks;  7. Stock of a large, established company;  8. Based on the amount & type of investments they sell to their clients.

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