Investment Knowledge Quiz

Building wealth starts with understanding the basics of investing. This quiz will help you test your knowledge of stocks, bonds, diversification, and smart long-term strategies.

Before you begin, here’s a quick refresher on essential investment concepts:

Stocks: Represent ownership in a company that may grow in value over time.
Bonds: Loans to companies or governments that pay interest periodically.
Diversification: Spreading investments across assets to reduce risk.
Risk vs. Reward: Greater potential returns often come with higher risks.
Long-Term Investing: Time in the market helps smooth out short-term volatility.

Ready? Let’s see how much you know — and learn along the way.

1. What is a stock?

Choose the statement that best describes it:

A loan to a company that pays fixed interest Ownership in a company that can grow in value Cash in a savings account

2. What is diversification in investing?

Investing all money in a single stock Spreading investments across different assets to reduce risk Avoiding any investment risk

3. Bonds are best described as:

Ownership in a company Loans to companies or governments that pay interest Real estate properties

4. What does “risk vs. reward” mean?

Higher potential returns usually come with higher risk Low-risk investments always earn more than high-risk ones Investing is always risky

5. Why is long-term investing important?

It allows investments to grow and smooth out market fluctuations It guarantees no risk It avoids taxes entirely

⬅️ Back to Quizzes

Investing is a journey — not a race. Understanding how money grows helps you make smarter, more confident financial decisions for the future.

1. What is a stock?

2. What is diversification in investing?

3. Bonds are best described as:

4. What does “risk vs. reward” mean?

5. Why is long-term investing important?

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