Module 5.4.1: Investing quiz

This 7-item multiple choice quiz will assess your knowledge of key investing principles from Unit 5, giving you a window into your newfound level of investment expertise.

1. Which type of fund typically has lower fees?


2. Which of the following is a benefit of diversification?


3. When you are young, you should make some risky investments that have a high potential profit.


4. A benefit of home ownership is not having to pay rent.


5. What is compounding interest?


6. If an employer offers to match employee contributions to a 401(k) fund or other retirement plan, you are basically doubling your money by contributing up to the matched amount.


7. IRA and other retirement contributions are tax deferred. Tax deferment is of minimal benefit, however, because you still have to pay taxes on the income when the money is withdrawn in retirement.


By Richard Thripp