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.
If you might need to borrow against your principal, you need _______.
Choose wisely. There is only one correct answer.
A collateral investment. A collateral investment can be used to secure a loan.
2.
If you might need to use your principal soon, which aspect(s) of trading would especially concern you?
Choose wisely. There is only one correct answer.
Maturity date and minimum investment. Minimum investment determines how much of your principal will be tied up, and the maturity date how long.
3.
In investment strategies, risk in traditional terms is _______.
Choose wisely. There is only one correct answer.
Good and bad. Risk in traditional terms can mean you fail to make money, or even lose it; but possible returns usually increase with the amount of risk.
4.
Investments in which earnings are allowed to build tax-free are called ______.
Choose wisely. There is only one correct answer.
Tax-deferred. Tax-deferred investments are those in which earnings are allowed to build tax-free until you receive them as income.
5.
Investors diversify to reduce the risks of different business trends.
Choose wisely. There is only one correct answer.
True. Diversifying helps them avoid any particular trend affecting their investments too much.