- 1. What is a key characteristic of investing in real estate?
A) Potential for rental income
B) Guaranteed returns
C) Immediate liquidity
D) High volatility
- 2. Which type of insurance is primarily used as an investment vehicle?
A) Whole life insurance
B) Health insurance
C) Auto 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) Market volatility
C) Low storage costs
D) Guaranteed appreciation
- 4. Which of the following is a disadvantage of investing in real estate?
A) Potential for rental income
B) High liquidity
C) Tax benefits
D) High transaction costs
- 5. What is a benefit of investing in bank deposits compared to other investment types?
A) High returns
B) Tax-free growth
C) High risk
D) Government insurance
- 6. Which of the following is a reason why someone might choose to invest in hard assets?
A) High liquidity
B) Guaranteed returns
C) Diversification
D) Low initial investment
- 7. What is a potential benefit of using insurance as an investment?
A) Immediate liquidity
B) No premiums
C) Tax-deferred growth
D) High returns
- 8. Which of the following is a potential drawback of investing in real estate?
A) Market volatility
B) Low transaction costs
C) Guaranteed rental income
D) High liquidity
- 9. What is a common reason for investing in bank deposits?
A) Capital appreciation
B) High returns
C) Safety and security
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) mutual funds
C) stocks
D) bank deposits
- 11. Land and any improvements on it is considered as _______.
A) bank deposits
B) stocks
C) mutual funds
D) real estate
- 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) real estate
B) stocks
C) bank deposits
D) mutual funds
- 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) bank deposits
B) mutual funds
C) real estate
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) Compounding period
C) Nominal rate
D) Compound Interest
- 16. It is the accumulated value of the principal or present
value (PV) and all interest amounts of prior periods.
A) Compounding period
B) Future value (FV)
C) Compound interesr
D) Nominal rate
- 17. It is the rate of investment or borrowings
A) Future Value
B) Compounding period
C) Compound interest
D) Nominal rate
- 18. Compounding period refers to the period of conversion made during the
year.
A) Compound interest
B) Nominal rate
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) Annuity
B) Total compounding period
C) Present Value (PV)
- 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) Total compounding period
B) Present Value
C) Present value of annuity
D) Annuity
- 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) 800
B) 840.24
C) 400
D) 480.24
- 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) 400
B) 480.24
C) 800
D) 840.24
- 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) 1,705,494.77
B) 1,590, 794.99
C) 1,508,153.45
D) 1,507,494.77
- 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) 1,590, 794.99
B) 1,508,153.45
C) 1,507,494.77
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) P69,00
B) P96,000
C) P9,00
D) P6,00
- 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) 311,600
B) 603,100
C) 113,600
D) 600, 311
- 29. Angel invested P5,000 every end of the year at 10% interest compounded
annually for four years.
A) 23,205
B) 20, 305
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) 16,510
B) 16, 105
C) 15, 106
D) 10,165
- 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) a only
B) identification of risk
C) both a and b
D) solution implementation
A) choice of capital structure
B) none of them
C) political and economic uncertainty
D) b only
A) a and b
B) Theft
C) b only
D) Tsunami
A) Trade mark
B) none of them
C) a and b
D) Franchise
A) none of them
B) Buying of insurance policy
C) Selling of equipment with salvage value of 50,000.
D) a and b
A) Installation of Biometric machine
B) a and b
C) a only
D) Installation of CCTV to the whole working area
A) non-systematic investment
B) none of them
C) systematic investment
D) a and b
- 39. A risk management technique that combines a wide variety of investments within
a portfolio to reduce risk.
A) diversification
B) a and b
C) c only
D) standard deviation
- 40. A risk management step which determine changes and updates are required
A) b and c
B) none of them
C) measure risk
D) identify risk
- 41. Leonilyn wants to invest her P100,000 at 6% simple interest for a period of
three years. Compute the simple interest.
A) P18,000
B) P12,000
C) P24,000
D) P30,000
- 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) Basic Protection is Knowledge
B) Waste Not, Want Not
C) Insure your needs
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) Insure your needs
B) Basic Protection is Knowledge
C) Waste Not, Want Not
D) Nothing Happens without a Plan
- 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) Basic Protection is Knowledge
B) Nothing Happens without a Plan
C) Waste Not, Want Not
D) Insure your needs
- 45. One must identify which
goals should be prioritized to avoid unnecessary expenses.
A) Waste Not, Want Not
B) Basic Protection is Knowledge
C) Insure your needs
D) Nothing Happens without a Plan
- 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) Country risk
B) Financial risk
C) Liquidity risk
D) Business 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) Financial risk
B) Country risk
C) Business risk
D) Liquidity 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) Financial risk
B) Business risk
C) Country risk
D) Liquidity 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) Country risk
B) Financial 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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