Basic Finance and Investing Quiz
From compound interest and inflation to stocks and bonds, diversification and risk — 25 basic finance questions on concepts you should know first, no matter which country you invest in. It covers principles that apply anywhere, not systems or products specific to any one country.
Sample questions
22 more questions in this quiz.1. What is the method of calculating interest in which the interest added to the principal earns interest again in the next period, so the growth rate speeds up over time?
- A. Compound interest
- B. Simple interest
- C. Discount
- D. Repayment
2. What do you call the phenomenon in which prices keep rising and the amount of goods you can buy with the same money decreases?
- A. Deflation
- B. Inflation
- C. Recession
- D. Appreciation
3. What security divides a company's ownership into small pieces, giving the holder a share in the company's profits and decision-making?
- A. Bond
- B. Insurance certificate
- C. Stock
- D. Deposit certificate