Are you a finance whiz or a novice? Or do you not know where you stand? Take this short, 5-question personal finance and investing quiz to find out!
After every question, you’ll have 5 seconds to note down your response – make sure to have a pencil and paper handy. The correct answer for each question will be revealed at the end of this video. So let’s begin!
Questions: Personal Finance & Investing Quiz
1. You are about to research what stocks to buy. How can you find the best stocks for your needs? Through:
- Complex analysis
- Fundamental analysis
- Basic analysis
- Foundational analysis
2. You want to buy stock in a large cap company. What could you look at to make sure the company is large cap?
- Its market capitalization
- Its bottom line
- Its 52 day moving average
- Its market share
3. You want to make investments every month, but take the emotion out of it. What strategy should you use?
- Dollar cost middling
- Dollar cost investing
- Dollar cost averaging
- Dollar cost half-waying
4. You decide you need to have an investment that is not very risky, and you’ll need to take your money out in 2-3 years. Which of the following investments should you choose?
- Savings account
- Corporate Bonds
- Oil exchange traded funds
- Broker recommended penny stocks
5. You are a new investor. Which one of these would you invest in first?
- Stock of a large-cap company
- US Government bonds
- That new business across the street
- S&P 500 index fund
Results for the Personal Finance & Investing Quiz
Now for the results. But before that: Please share this quiz with your family and friends, so you can compare their money smarts to yours. Tell us how you did in the comments.
Okay. Now to the results.
The correct answer for question 1 is B, fundamental analysis.
Fundamental analysis helps you select the best stocks for your investment needs. To learn more, check out our video on Fundamental Analysis.
For question 2, the correct answer is A, market capitalization, a.k.a. market cap.
All the other options measure different aspects of the company, but will not tell you whether or not it’s a large cap. To find out more, please watch our market cap video.
The correct answer to question 3 is C, dollar cost averaging.
The answer to question 4 is B, corporate bonds.
Corporate bonds are your best choice if you have a 2-3 year time frame, and want a not-so-risky investment. Savings account would give you a lower return, whereas oil ETFs and penny stocks are much riskier investments. To find out more, check out our videos on bonds, and stocks vs. bonds.
What’s your result?
How did you do on this personal finance and investing quiz? Be sure to let us know in the comments below.