Home > Strategy > Beginner
Strategy Beginner: Introduction to Investment Strategy

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
When interest rates go up, the value of your current bonds on the market _______.
Choose wisely. There is only one correct answer.
Goes down. Market prices of bonds tend to have an inverse relationship to interest rates.
2.
It is never smart to invest through a full-service broker.
Choose wisely. There is only one correct answer.
False. Investors who do not want to put in the time or effort to research and manage their investments may find a full-service broker essential.
3.
The greater potential return that investments offer in return for accepting greater risk is called ________.
Choose wisely. There is only one correct answer.
Risk premium. This is the "reward" for taking on risk.
4.
_______ are taxed at a relatively low rate if you hold your investments long enough.
Choose wisely. There is only one correct answer.
Capital gains. Long-term capital gains are taxed at a lower rate to encourage investment.
5.
The more liquid an investment is, _______.
Choose wisely. There is only one correct answer.
The easier it is to turn into cash. Liquid investments are easy to turn into cash, either by withdrawing from them or selling them.