Longterm Investment Test

1. What is a growth stock?

A stock from a company expected to grow faster than average A stock that always pays high dividends A stock with no risk A stock that never drops

2. What is concentration risk?

Having too much money in one asset or sector Holding ETFs Using a savings account Being diversified

3. What is a blue-chip stock?

A stock from a brand-new company only A penny stock only A stock from a large, established, financially strong company A crypto token

4. What is a rug pull?

A scam where project creators take funds and abandon the project A safe investment method A stock split A dividend payment

5. What is the risk of keeping all crypto on an exchange?

The funds become automatically insured The exchange could be hacked, frozen, or fail Crypto becomes risk-free Private keys become stronger

6. Why should investors compare companies within the same industry?

It helps evaluate relative strength and valuation It removes volatility It avoids research It guarantees profit

7. What is the main benefit of a long time horizon?

No market risk More time to recover from downturns and benefit from growth No need to diversify Guaranteed profit every month

8. What is circulating supply?

The amount of coins or tokens currently available in the market The total number of exchanges The number of social media followers The number of miners only

9. What is a cold wallet?

A bank app A stock account A wallet connected to the internet A crypto wallet stored offline

10. Why is long-term investing important?

It avoids all market downturns It guarantees daily profit It removes all risk It allows time for compounding and market growth

11. Why does token supply matter?

Supply controls private keys Supply guarantees profit Supply affects scarcity, inflation, and potential long-term value Supply removes risk

12. What is an ETF?

A fund that holds a basket of assets and trades like a stock A single private company A crypto seed phrase A bank account

13. What is staking?

Printing money Locking crypto to help secure a network and possibly earn rewards Using leverage Buying a stock

14. What is volatility?

Guaranteed growth A tax benefit Large or frequent price movement A broker login

15. What is the P/E ratio?

Profit exchange return Public equity rule Premium earnings rate Price-to-earnings ratio

16. Do all stocks pay dividends?

No, some companies reinvest profits instead Yes, every stock pays dividends Only losing companies pay dividends Only crypto companies pay dividends

17. What is earnings?

Total sales before expenses A crypto wallet A broker fee Profit after expenses

18. Why are ETFs and index funds useful for long-term investors?

They never decline They provide diversification and simplicity They guarantee profits They avoid all risk

19. What is the best description of long-term investing?

A disciplined strategy based on time, research, diversification, and patience A way to get rich overnight A daily gambling strategy A risk-free method

20. Why should long-term investors avoid panic selling?

It can lock in losses during temporary downturns It removes taxes It guarantees a better entry It always increases returns

21. What is a crypto token?

A physical coin A digital asset built on an existing blockchain A bank card A company share

22. Why should younger investors often think long-term?

They usually have more time to recover from downturns and benefit from compounding They should avoid all investing They only need cash They cannot lose money

23. What is compounding?

Earning returns on previous returns over time A crypto password Losing money automatically A broker fee

24. Why should investors review their portfolio periodically?

To avoid learning To trade every hour To make sure it still matches goals and risk tolerance To chase every trend

25. What is revenue?

A crypto fee Profit after expenses only Total sales before expenses A dividend payment