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Investments
Fund quiz 3, 10 questions about investing your Permanent Fund
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These sites can help you with the quiz:
Alaska Permanent Fund State of Alaska Banking and investment for kids
1. What is an asset class?
A A university course about assets
B A category of investment
C A very large sum of money
2. A fiduciary is
A A person or company holding assets in trust for a beneficiary
B A company engaged in making loans to businesses and/or individuals
C A high-speed, computerized communications network used for investing
3. What is a stock?
A Ownership in a corporation, represented by one or more shares
B A loan to a government or business
C A piece of property and all the physical property related to it
4. What is a bond?
A A certificate that proves ownership of commercial or retail property
B An "IOU" that states how and when a borrower will pay back a lender
C An official document stating number of shares owned
5. What is real estate?
A A palatial manor inhabited by a very wealthy individual or individuals
B Any piece of property and the physical property related to it
C Only property that is owned by a business or government
6. What is a security?
A Evidence of debt or ownership
B A general term referring to conventional stock, bond and real estate investments
C Documentation signifying ownership in a corporation or a creditor relationship with a corporation or government, or rights to ownership
D All of the above
7. What investment strategy helps to protect an investor from volatility?
A Hedging
B Diversification
C A bull market
8. What investment guideline does the Permanent Board of Trustees follow?
A Keep "all your eggs in one basket"
B 100% high risk, high returns
C The Prudent Investor Rule
9. What does the Prudent Investor Rule state?
A Fiduciaries may invest only in a restricted list of securities, called the "legal list"
B Stocks are the superior investment over the long run
C A fiduciary must act with discretion and intelligence, seek reasonable income, preserve principal and avoid speculative investments
10. What is the profit from an investment, expressed as a percentage of the amount invested called?
A Dividend
B Interest rate
C Rate of return
