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 long-term investing? Using only leverage Buying and selling every minute Buying and holding assets for years with the goal of growth over time Trying to get rich overnight 2. What is a cold wallet? A bank app A crypto wallet stored offline A stock account A wallet connected to the internet 3. What is a rug pull? A scam where project creators take funds and abandon the project A safe investment method A dividend payment A stock split 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 dollar-cost averaging? Investing a fixed amount regularly over time Investing everything at once only Borrowing money to invest Selling after every dip 6. What is an index fund? A stock password A company loan A crypto exchange A fund designed to track a market index 7. What is cryptocurrency? A company stock A bank loan A physical coin only Digital money or digital assets built on blockchain technology 8. What is the best description of long-term investing? A daily gambling strategy A risk-free method A disciplined strategy based on time, research, diversification, and patience A way to get rich overnight 9. What is phishing in crypto? A scam that tricks users into revealing passwords or private keys A market index A dividend plan A staking reward 10. Why is developer activity important in crypto investing? It guarantees profits It replaces security It shows whether a project is being improved and built It removes volatility 11. Why should investors compare companies within the same industry? It helps evaluate relative strength and valuation It guarantees profit It avoids research It removes volatility 12. What is market capitalization? A crypto password A company’s rent Share price multiplied by shares outstanding A dividend date 13. Why should long-term investors avoid panic selling? It always increases returns It can lock in losses during temporary downturns It guarantees a better entry It removes taxes 14. What is network activity in crypto? A stock dividend A company payroll list A bank policy Usage of a blockchain such as transactions and wallet activity 15. What is the P/E ratio? Public equity rule Premium earnings rate Profit exchange return Price-to-earnings ratio 16. What is earnings? A crypto wallet A broker fee Profit after expenses Total sales before expenses 17. What is price appreciation? When a stock stops trading When an investment increases in value When a broker charges a fee When a company changes its name 18. What is a growth stock? A stock with no risk A stock that never drops A stock from a company expected to grow faster than average A stock that always pays high dividends 19. Why do long-term investors study earnings growth? It replaces diversification It guarantees the stock will rise It can show whether a company is becoming more profitable It removes market risk 20. Why is long-term investing important? It removes all risk It allows time for compounding and market growth It guarantees daily profit It avoids all market downturns 21. What is Ethereum known for? Only tracking the S&P 500 Smart contracts and decentralized applications Only being a bank account Only paying dividends 22. What is rebalancing? Selling everything daily Buying only one asset Avoiding all investing Adjusting a portfolio back to target allocations 23. What is risk tolerance? The amount of profit guaranteed A company’s revenue A broker’s fee How much volatility or loss an investor can handle 24. What is a stock? A bank loan A share of ownership in a company A tax form A crypto wallet 25. What is diversification? Avoiding all investing Putting everything into one crypto Spreading investments across different assets Buying only one stock Submit Test