FAS Investment Terms Quiz

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* 1. What is the main difference between investing and gambling?

Investing is done online, whilst gambling happens in a casino.

Gambling involves cash, whilst investing does not.

Investing commits capital towards long-term goals; gambling plays the odds.

Investing involves a lot of money, whilst gambling normally uses smaller amounts.

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* 2. What is a "diversified" investment portfolio?

A set of bond investments.

A collection of different assets which seeks to lower overall investment risk.

A set of investments which looks different from what most people's portfolios look like.

A portfolio with a very small, focused set of investments.

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* 3. What is a "bond"?

An investment which involves a very long term commitment.

A loan made by an investor to a borrower (typically a government or business).

A strategy where you team up with other investors, to pool your money.

A close relationship between an investor and a fund manager.

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* 4. What is the commonly-understood relationship between investment "risk" and "return"?

The higher the investment risk, the lower the potential return

The lower the investment risk, the higher the potential return.

The higher the investment risk, the higher the potential return.

There is no relationship between investment risk and return.

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* 5. What does "inflation" mean?

The rise in overall prices in an economy over time.

The number of times something happens to a currency.

How much your investment will be worth at the end of a defined time frame.

The amount of volatility that an investment is expected to experience.

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* 6. What does "ETF" stand for?

Equivalent Transfer Finance

Easy Trading Foundation

Equivalent Transfer Funds

Exchange Traded Fund

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* 7. What does "ESG" refer to, as an investment approach?

Environmental, Social & Governance

Extra Sustainable and Green

Entry-Level, Simple & Growth-Focused

Ethics, Sustainability and Governance

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* 8. What's the difference between a "restricted" and an "independent" financial adviser, in the UK?

The former is part of a big company; the latter is part of a small one.

The former can only recommend certain financial products to you; the latter can survey the whole market for you.

The former has fewer qualifications than the latter, to provide financial advice.

The former can only advise on pensions; the latter can also advise on investments.

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* 9. In general, "stocks" provide...

A higher investment return compared to bonds, but also carry a higher risk.

A lower investment return compared to bonds, and a lower investment risk.

About the same level of investment risk and return as bonds.

A higher investment return compared to bonds, as well as a lower investment risk.

FAS Investment Terms Quiz

Question Title

* 1. What is the main difference between investing and gambling?

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* 2. What is a "diversified" investment portfolio?

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* 3. What is a "bond"?

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* 4. What is the commonly-understood relationship between investment "risk" and "return"?

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* 5. What does "inflation" mean?

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* 6. What does "ETF" stand for?

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* 7. What does "ESG" refer to, as an investment approach?

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* 8. What's the difference between a "restricted" and an "independent" financial adviser, in the UK?

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* 9. In general, "stocks" provide...

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* 10. Feel free to leave your feedback!