Brokerage Cognitive Assessment Welcome to your Brokerage Cognitive Assessment - Please note that you will only have one chance to answer the questions within the 5-minute time limit, please take care when answering - as one wrong question is the difference between passing or failing. The timer will start as soon as you click next. Good Luck! Name & Surname Email 1. What is the difference between a bull market and a bear market? A bull market is when the stock market is stable and a bear market is when the stock market is volatile A bull market is when the stock market is rising and a bear market is when the stock market is falling A bull market is when the stock market is falling and a bear market is when the stock market is rising A bull market is when the stock market is stable and a bear market is when the stock market is rising None 2. What is the purpose of a stop-loss order? To increase the amount of money that can be lost To limit the amount of money that can be lost To limit the amount of money that can be invested To increase the amount of money that can be invested None 3. What is the purpose of a stock option? To buy or sell a real estate at a specific price at a specific time To buy or sell a commodity at a specific price at a specific time To buy or sell a bond at a specific price at a specific time To buy or sell a stock at a specific price at a specific time None 4. What is a bond? A stock that pays dividends to the stockholder A real estate that pays rent to the landlord A debt security that pays interest to the bondholder A commodity that pays profits to the investor None 5. What type of investment carries the greatest risk? Bonds Real estate Stocks Cryptocurrency None 6. What is the purpose of a stock market index? To track the performance of a specific sector To track the performance of a group of companies To track the performance of a specific commodity To track the performance of a specific company None 7. In the context of investing, what is diversification? Investing your money into a variety of assets to reduce risk Investing all of your money into one sector Investing your money into a variety of sectors to increase returns Investing all of your money into one stock None 8. What is margin trading? Investing with government money Investing with borrowed money Investing with the money of others Investing with your own money None 9. How does the foreign exchange market, also known as Forex, function? It allows individuals to trade goods and services It allows individuals to trade commodities It allows individuals to trade stocks and bonds It allows individuals to trade one currency for another None 10. Which of the following is not a common cryptocurrency? Litecoin Simcoin Bitcoin Ethereum None 1 out of 4