Longterm Investment Test Long-Term Investing Knowledge Test Instructions: Answer all 25 questions. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. What is FOMO? Financial option market only Fast open money offer Fear of missing out Fixed ownership market order 2. Why do long-term investors study earnings growth? It replaces diversification It removes market risk It can show whether a company is becoming more profitable It guarantees the stock will rise 3. What is a stock? A tax form A bank loan A share of ownership in a company A crypto wallet 4. What should investors do before buying a stock or crypto asset? Buy immediately based on hype Research the asset, risks, fundamentals, and long-term potential Ignore all risk Ask strangers only 5. What is crypto market capitalization? Token price multiplied by circulating supply The founder’s salary Daily exchange fee Total number of wallets only 6. What is a growth stock? A stock that never drops A stock that always pays high dividends A stock with no risk A stock from a company expected to grow faster than average 7. Why should long-term investors avoid panic selling? It removes taxes It can lock in losses during temporary downturns It always increases returns It guarantees a better entry 8. What is a blue-chip stock? A stock from a large, established, financially strong company A crypto token A stock from a brand-new company only A penny stock only 9. What is a rug pull? A scam where project creators take funds and abandon the project A stock split A safe investment method A dividend payment 10. Why is crypto usually more volatile than large-cap stocks? Stocks never move Crypto always has guaranteed value Crypto has no buyers Crypto markets are newer, less regulated, and often sentiment-driven 11. Why should younger investors often think long-term? They usually have more time to recover from downturns and benefit from compounding They cannot lose money They should avoid all investing They only need cash 12. What is a long-term investment thesis? A tax refund A short-term rumor A broker password The reason an investor believes an asset can grow over time 13. Why should investors diversify between stocks and crypto? To balance growth potential and risk exposure To guarantee profit To avoid learning To eliminate volatility 14. Do all stocks pay dividends? Yes, every stock pays dividends Only losing companies pay dividends No, some companies reinvest profits instead Only crypto companies pay dividends 15. What is asset allocation? A crypto wallet address The price of one stock How money is divided among different investment types A dividend payment 16. Why are ETFs and index funds useful for long-term investors? They provide diversification and simplicity They never decline They avoid all risk They guarantee profits 17. What is dollar-cost averaging? Selling after every dip Investing a fixed amount regularly over time Borrowing money to invest Investing everything at once only 18. What is a stablecoin? A crypto designed to track another asset like the U.S. dollar A guaranteed profit coin A stock index A cold wallet 19. Why should investors compare companies within the same industry? It avoids research It helps evaluate relative strength and valuation It removes volatility It guarantees profit 20. What is diversification? Putting everything into one crypto Buying only one stock Spreading investments across different assets Avoiding all investing 21. What is long-term investing? Buying and selling every minute Trying to get rich overnight Using only leverage Buying and holding assets for years with the goal of growth over time 22. Why does token supply matter? Supply controls private keys Supply affects scarcity, inflation, and potential long-term value Supply removes risk Supply guarantees profit 23. What is the best description of long-term investing? A way to get rich overnight A disciplined strategy based on time, research, diversification, and patience A risk-free method A daily gambling strategy 24. What is network activity in crypto? Usage of a blockchain such as transactions and wallet activity A bank policy A company payroll list A stock dividend 25. How can stock investors make money long-term? Price appreciation and dividends Only tax refunds Only broker bonuses Only bank interest Submit Test