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Wk 5 Exit Ticket 3.1 and 3.2
By Tang Xiong
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Last updated about 3 hours ago
5 questions
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Question 1
1.
Which of the following statements BEST describes investing?
Investing involves saving money in a bank account with no risk of loss.
Investing means buying products and services to fulfill immediate needs and wants.
Investing is the process of using money to purchase assets with the expectation of generating income or capital gains over time.
Investing refers to the act of spending money on luxury items to enhance your lifestyle.
Question 2
2.
An investor can best harness the power of compounding by doing all of the following, EXCEPT…
Frequently withdrawing funds to use for short-term expenses
Starting to invest as early as possible
Reinvesting dividends and interest earned
Making regular contributions to their investment
Question 3
3.
Which of the following statements BEST describes the stock market?
The stock market is a network of banks that provide loans to businesses and consumers.
The stock market is a place where people can only buy bonds and real estate.
The stock market is a financial marketplace where shares of publicly traded companies are bought and sold.
The stock market is a system where individuals lend money to the government at a fixed interest rate.
Question 4
4.
During a BULL market…
Interest rates are at their highest, and businesses are cutting back on investments.
Stock prices generally rise, and investor confidence is high.
The economy is in a recession, and unemployment rates are rising.
Stock prices generally decline, and investor confidence is low.
Question 5
5.
Over time, the stock market has:
Remained stagnant with no significant growth or loss.
Generally increased in value, providing positive returns to long-term investors.
Shown unpredictable and random movements with no overall trend.
Consistently provided negative returns to investors.