- 1. What is a key characteristic of investing in real estate?
A) Potential for rental income
B) High volatility
C) Guaranteed returns
D) Immediate liquidity
- 2. Which type of insurance is primarily used as an investment vehicle?
A) Auto insurance
B) Whole life insurance
C) Health insurance
D) Term life insurance
- 3. What is a common risk associated with investing in hard assets like gold or art?
A) High liquidity
B) Low storage costs
C) Guaranteed appreciation
D) Market volatility
- 4. Which of the following is a disadvantage of investing in real estate?
A) Potential for rental income
B) High transaction costs
C) High liquidity
D) Tax benefits
- 5. What is a benefit of investing in bank deposits compared to other investment types?
A) High returns
B) Government insurance
C) Tax-free growth
D) High risk
- 6. Which of the following is a reason why someone might choose to invest in hard assets?
A) Guaranteed returns
B) Low initial investment
C) Diversification
D) High liquidity
- 7. What is a potential benefit of using insurance as an investment?
A) High returns
B) No premiums
C) Tax-deferred growth
D) Immediate liquidity
- 8. Which of the following is a potential drawback of investing in real estate?
A) Guaranteed rental income
B) Market volatility
C) Low transaction costs
D) High liquidity
- 9. What is a common reason for investing in bank deposits?
A) Safety and security
B) High returns
C) Capital appreciation
D) High risk
- 10. An investment that is made up of a pool of funds collected for many investors for the purpose of investing in stocks, bonds and similar assets.
A) real estate
B) stocks
C) mutual funds
D) bank deposits
- 11. Land and any improvements on it is considered as _______.
A) real estate
B) mutual funds
C) bank deposits
D) stocks
- 12. It is a type of security that signifies ownership in a corporation and represents a claim on part of the corporations assets and earnings.
A) mutual funds
B) stocks
C) bank deposits
D) real estate
- 13. A contract in which an individual or entity receives financial protection or reimbursement againts losses from an insurance company.
A) real estate
B) mutual funds
C) insurance
D) stocks
- 14. Money placed into a banking institution for safekeeping is called ____.
A) real estate
B) bank deposits
C) mutual funds
D) stocks
- 15. It is the interest of one compounding period is added to
the principal of the period to form the new principal as basis for computing
the interest of succeeding periods.
A) Future value (FV)
B) Compound Interest
C) Compounding period
D) Nominal rate
- 16. It is the accumulated value of the principal or present
value (PV) and all interest amounts of prior periods.
A) Compounding period
B) Nominal rate
C) Compound interesr
D) Future value (FV)
- 17. It is the rate of investment or borrowings
A) Compounding period
B) Compound interest
C) Nominal rate
D) Future Value
- 18. Compounding period refers to the period of conversion made during the
year.
A) Nominal rate
B) Compound interest
C) Compounding period
D) Future value
- 19. It refers to the number of times an interest
is computed during the term of investment.
A) Annuity
B) Present Value
C) Total compounding period
- 20. refers to a series of consecutive equal investments or payments
made at an equal interval of time
A) Present Value (PV)
B) Annuity
C) Total compounding period
- 21. It refers to the value of the money at present.
A) Present Value (
B) Annuity
C) Total compounding period
- 22. It refers to the present value of all individual
investments or deposits made
A) Present Value
B) Present value of annuity
C) Annuity
D) Total compounding period
- 23. You deposit PHP1,000 in your bank account. If the bank pays 4% simple
interest, how much interest will you accumulate in your account after 10
years?
A) 480.24
B) 840.24
C) 800
D) 400
- 24. You deposit PHP1,000 in your bank account. If the bank pays 4% simple
interest, how much interest will you accumulate in your account after 10
years?What if the bank pays compound interest?
A) 480.24
B) 840.24
C) 800
D) 400
- 25. Mario will be making a lump sum payment of PHP1.6 million on the
condominium he is buying two years from now. If he wants to set aside funds
POST TEST
from now and invest it that will earn interest of 3%, net of taxes every year
and this amount is compounded annually, how much does he need to invest
today?
A) 1,508,153.45
B) 1,705,494.77
C) 1,507,494.77
D) 1,590, 794.99
- 26. Mario will be making a lump sum payment of PHP1.6 million on the
condominium he is buying two years from now. If he wants to set aside funds
POST TEST
from now and invest it that will earn interest of 3%, net of taxes every year
and this amount is compounded annually, how much does he need to invest
today?What if the interest is compounded semi-annually, how much does he
need to invest today?
A) 1,507,494.77
B) 1,508,153.45
C) 1,590, 794.99
D) 1,705,894.70
- 27. Izzy plans to invest P3,000 at the end of every quarter for 8 years at the
interest rate of 10% compounded quarterly.
A) P6,00
B) P96,000
C) P9,00
D) P69,00
- 28. Princess’s goal is to have an investment of P500,000 after four years. The
amount to be invested will earn interest of 12% compounded quarterly.
A) 113,600
B) 311,600
C) 603,100
D) 600, 311
- 29. Angel invested P5,000 every end of the year at 10% interest compounded
annually for four years.
A) 20, 305
B) 23,205
C) 25,203
D) 30,503
- 30. Jenny has invested P10,000 on January 1, 2018 at 10% interest compounded
annually for five years.
A) 10,165
B) 16,510
C) 16, 105
D) 15, 106
- 31. It is used to measure risk on investment.
A) both a and b
B) risk
C) volatility
D) diversification
- 32. Risk management process
A) identification of risk
B) a only
C) both a and b
D) solution implementation
A) b only
B) choice of capital structure
C) political and economic uncertainty
D) none of them
A) b only
B) Tsunami
C) a and b
D) Theft
A) Franchise
B) none of them
C) a and b
D) Trade mark
A) a and b
B) Selling of equipment with salvage value of 50,000.
C) none of them
D) Buying of insurance policy
A) a and b
B) a only
C) Installation of CCTV to the whole working area
D) Installation of Biometric machine
A) non-systematic investment
B) none of them
C) a and b
D) systematic investment
- 39. A risk management technique that combines a wide variety of investments within
a portfolio to reduce risk.
A) standard deviation
B) diversification
C) c only
D) a and b
- 40. A risk management step which determine changes and updates are required
A) identify risk
B) b and c
C) none of them
D) measure risk
- 41. Leonilyn wants to invest her P100,000 at 6% simple interest for a period of
three years. Compute the simple interest.
A) P30,000
B) P18,000
C) P24,000
D) P12,000
- 42. The first step to getting your personal finances under control is to have a clear
understanding of where you are now. Determine and list your assets, liabilities and
expenses
A) Insure your needs
B) Waste Not, Want Not
C) Basic Protection is Knowledge
D) Nothing Happens without a Plan
- 43. Financial planning is not limited to companies alone. Individuals should also practice
financial planning to achieve the set goals and objectives. One must learn to practice
budgeting to properly account one’s resources.
A) Waste Not, Want Not
B) Insure your needs
C) Nothing Happens without a Plan
D) Basic Protection is Knowledge
- 44. It provides another margin of safety. Most importantly, insurance is not a primarily
vehicle for creating wealth, merely protecting it. One must protect his resources from
event risks including natural calamities by securing insurance.
A) Waste Not, Want Not
B) Insure your needs
C) Basic Protection is Knowledge
D) Nothing Happens without a Plan
- 45. One must identify which
goals should be prioritized to avoid unnecessary expenses.
A) Nothing Happens without a Plan
B) Waste Not, Want Not
C) Basic Protection is Knowledge
D) Insure your needs
- 46. It is related to the nature of the company’s products and operating strategy.
Companies with stable sources of sales and earnings have relatively low business risk.
A) Business risk
B) Liquidity risk
C) Financial risk
D) Country risk
- 47. It is associated with political and economic uncertainty of a particular
business environment. You can only entice investors to invest in countries with political
stability if a higher rate of return is expected.
A) Country risk
B) Liquidity risk
C) Financial risk
D) Business risk
- 48. It refers to the risk created by the choice of capital structure—the
financing mix of the issuing company. A company usually funds its operation through debt
and equity financing. As the debt portion increases, financial risk increases.
A) Country risk
B) Financial risk
C) Liquidity risk
D) Business risk
- 49. It is the uncertainty that an investment can be converted to cash at a
known price. The existence of exchange facilities eases in liquidating an investment.
A) Financial risk
B) Country risk
C) Business risk
D) Liquidity risk
- 50. It exists if the investment is denominated in another currency
different from that of the local currency of the investor.
A) Exchange rate risk
B) Business risk
C) Liquidity risk
D) Business risk
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