- 1. What is a key characteristic of investing in real estate?
A) Guaranteed returns
B) High volatility
C) Immediate liquidity
D) Potential for rental income
- 2. Which type of insurance is primarily used as an investment vehicle?
A) Auto insurance
B) Whole life insurance
C) Term life insurance
D) Health insurance
- 3. What is a common risk associated with investing in hard assets like gold or art?
A) Market volatility
B) Guaranteed appreciation
C) Low storage costs
D) High liquidity
- 4. Which of the following is a disadvantage of investing in real estate?
A) High transaction costs
B) Tax benefits
C) High liquidity
D) Potential for rental income
- 5. What is a benefit of investing in bank deposits compared to other investment types?
A) Government insurance
B) High risk
C) High returns
D) Tax-free growth
- 6. Which of the following is a reason why someone might choose to invest in hard assets?
A) High liquidity
B) Low initial investment
C) Guaranteed returns
D) Diversification
- 7. What is a potential benefit of using insurance as an investment?
A) Tax-deferred growth
B) No premiums
C) Immediate liquidity
D) High returns
- 8. Which of the following is a potential drawback of investing in real estate?
A) Guaranteed rental income
B) High liquidity
C) Market volatility
D) Low transaction costs
- 9. What is a common reason for investing in bank deposits?
A) Capital appreciation
B) High risk
C) Safety and security
D) High returns
- 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) stocks
B) real estate
C) mutual funds
D) bank deposits
- 11. Land and any improvements on it is considered as _______.
A) stocks
B) real estate
C) mutual funds
D) bank deposits
- 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) real estate
C) bank deposits
D) stocks
- 13. A contract in which an individual or entity receives financial protection or reimbursement againts losses from an insurance company.
A) insurance
B) stocks
C) mutual funds
D) real estate
- 14. Money placed into a banking institution for safekeeping is called ____.
A) mutual funds
B) stocks
C) bank deposits
D) real estate
- 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) Future value (FV)
C) Nominal rate
D) Compound interesr
- 17. It is the rate of investment or borrowings
A) Compounding period
B) Compound interest
C) Future Value
D) Nominal rate
- 18. Compounding period refers to the period of conversion made during the
year.
A) Future value
B) Compounding period
C) Compound interest
D) Nominal rate
- 19. It refers to the number of times an interest
is computed during the term of investment.
A) Total compounding period
B) Annuity
C) Present Value
- 20. refers to a series of consecutive equal investments or payments
made at an equal interval of time
A) Total compounding period
B) Present Value (PV)
C) Annuity
- 21. It refers to the value of the money at present.
A) Annuity
B) Present Value (
C) Total compounding period
- 22. It refers to the present value of all individual
investments or deposits made
A) Total compounding period
B) Annuity
C) Present value of annuity
D) Present Value
- 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) 400
B) 840.24
C) 800
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) 840.24
B) 800
C) 480.24
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) 1,705,494.77
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) 1,705,894.70
B) 1,508,153.45
C) 1,590, 794.99
D) 1,507,494.77
- 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) 600, 311
B) 113,600
C) 311,600
D) 603,100
- 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) 16,510
B) 15, 106
C) 10,165
D) 16, 105
- 31. It is used to measure risk on investment.
A) diversification
B) risk
C) both a and b
D) volatility
- 32. Risk management process
A) identification of risk
B) a only
C) both a and b
D) solution implementation
A) none of them
B) b only
C) political and economic uncertainty
D) choice of capital structure
A) Tsunami
B) b only
C) Theft
D) a and b
A) a and b
B) Trade mark
C) none of them
D) Franchise
A) Buying of insurance policy
B) none of them
C) a and b
D) Selling of equipment with salvage value of 50,000.
A) a only
B) Installation of CCTV to the whole working area
C) a and b
D) Installation of Biometric machine
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) a and b
B) c only
C) standard deviation
D) diversification
- 40. A risk management step which determine changes and updates are required
A) identify risk
B) b and c
C) measure risk
D) none of them
- 41. Leonilyn wants to invest her P100,000 at 6% simple interest for a period of
three years. Compute the simple interest.
A) P24,000
B) P12,000
C) P30,000
D) P18,000
- 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) Nothing Happens without a Plan
B) Waste Not, Want Not
C) Basic Protection is Knowledge
D) Insure your needs
- 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) Basic Protection is Knowledge
B) Insure your needs
C) Nothing Happens without a Plan
D) Waste Not, Want Not
- 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) Nothing Happens without a Plan
B) Waste Not, Want Not
C) Basic Protection is Knowledge
D) Insure your needs
- 45. One must identify which
goals should be prioritized to avoid unnecessary expenses.
A) Waste Not, Want Not
B) Nothing Happens without a Plan
C) Insure your needs
D) Basic Protection is Knowledge
- 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) Country risk
C) Financial risk
D) Liquidity 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) Business risk
C) Liquidity risk
D) Financial 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) Liquidity risk
B) Financial risk
C) Business risk
D) Country 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) Business risk
B) Financial risk
C) Liquidity risk
D) Country risk
- 50. It exists if the investment is denominated in another currency
different from that of the local currency of the investor.
A) Business risk
B) Exchange rate risk
C) Liquidity risk
D) Business risk
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