Business Finance Long Quiz

Name: ________________________________ Score: ________

Test I. Multiple Choice. Read each item carefully and write the letter on the underlined space that corresponds to
the correct answer.
___1. Money placed into a banking institution for safekeeping.
a. Stocks b. Bank Deposits c. Mutual Funds d. Real Estate
___2. A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from
an insurance company. a. Insurance b. Bank Deposits c. Mutual Funds d. Real Estate
___3. An investment that made is up of a pool of funds collected from many inventors for the purpose of investing in stocks,
bonds, and similar assets.
a. Insurance b. Bank Deposits c. Mutual Funds d. Real Estate
___4. They refer to tangible, physical assets that have intrinsic value due to their physical properties.
a. Hard Assets b. Commodities c. Stocks d. UITF
___5. Refers to the land and any permanent improvements attached to it, such as buildings, homes, fences, or any other
structures. a. Stocks b. Bank Deposits c. Mutual Funds d. Real Estate
___6. Earns the highest interest rate but it is not always available for withdrawal.
a. Current Account b. Savings Account c. Time Deposit d. Offline Withdrawal
___7. These opportunities should be grabbed only when you have extra resources and should not be main source of income.
a. Investment b. Savings c. Business d. Finance
___8. This insurance covers medical expenses such as doctor visits, hospital stays, and surgeries.
a. Life Insurance b. Death Insurance c. Love Insurance d. Life Insurance
___9. It includes the way you think about money and what you do with it.
a. Business Finance Philosophies c. Applied Economics Philosophies
b. Money Management Philosophies d. Money Marketing Philosophies
___10. The following are the money management philosophies, except:
a. Live within your means b. Have enough savings c. Insure your needs d. Spend impulsively
___11.It includes all financial decisions and activities of an individual including budgeting, insurance, mortgage planning,
savings, and retirement planning. a. Business Finance b. Personal Finance c. Budgeting d. Financial Planning
___12. This refers to both our daily routine expenses & our major expenses as well as where we use our money.
a. Spending b. Saving c. Sharing d. Storing
___13. It is the process of sound money management that leads to personal and economic satisfaction.
a. Personal Planning Process b. Business Finance process c. Economic Process d. Business Process
___14. A portion of our money that we do not spend for future needs or mostly, for financial security in case of need.
a. Spending b. Saving c. Sharing d. Storing
___15. A percentage of our money that we decide to give to charities, churches or other institutions that need a financial
support. a. Spending b. Saving c. Sharing d. Storing
___16. Why some older people put their money in a savings account?
a. They earn a better rate if they will invest in long-term stocks b. They do not want a lot of investment risk
c. Because their parents did the same thing d. Because it helps them save money more easily
___17. What does a well-designed, successful financial plan include?
a. wants and needs b. unexpected income c. retirement planning d. bank statements
___18. Which one is a good example of a well-stated financial goal?
a. become financially independent. b. buy a 1 million car c. buy a house. d. pay off P10,000 in credit card debt
___19. What do you think is the first step in the Financial Planning Process?
a. Analyze the data b. Gather the data c. Implement the plan d. Establish the goal
___20. Today, Financial Planning helps individuals to ____________.
a. guarantee future income b. eliminate risk on investments
c. have strategies for saving and investing d. achieve all goals by set target date
Test II-A. Matching Type. Match the following examples in column B with the type of investment they belong in Column B.
Write the letter on the underlined space. Column A Column B
___ 21. Current Account a. Time Deposit
___ 22. USD/Peso b. Hard Assets
___ 23. Land c. Bonds
___ 24. Health d. Bank Deposits
___ 25. Gold/Silver e. UITF
___ 26. Fidelity Contra-fund f. Currencies
___ 27. Debt Investment g. Insurance
___ 28. BDO Peso Balanced Fund h. Stocks
___ 29. Shareholders i. Mutual Fund
___ 30. Certificate of Deposit j. Real Estate
Match the items in Column A with the terms in Column B. Write the CAPITAL LETTER of your answer on the space provided.

31.___ Planning on wealth accumulation for large purchases such as house, educational a. Adequate Protection
expenses, investments for retirement, etc.
32.___ Financial products will be proposed. At this point, the individual can comment on b. Data Analysis
the solutions proposed.
33.___ Periodic review of the financial plan to evaluate changing market conditions (i.e. c. Data Gathering
economic conditions, taxes, interest rates, etc.).
34.___ Analysis of protection needed for unforeseen risks. d. Financial Plan
Recommendation
35.___ Management of when and how much taxes will be paid. e. Financial Position
36.___ Understanding the cost of retirement. Analysis of cash flows to come up with f. Investment and
investment plans that will meet the costs of retirement in the future. Accumulation Goals
37.___ Analysis of the individual’s financial position and cash flows. Review of legal g. Objective Setting
papers. Evaluation of objectives vis-à-vis the client’s resources and economic
conditions.
38.___ Quantifying monetary objectives with definite time frames. Prioritizing objectives. h. Plan Monitoring
39.___ Using surveys, questionnaires and interviews to gather quantitative and qualitative i. Retirement Planning
information from the individual.
40.___ Understanding of personal resources by checking an individual’s net worth and j. Tax Planning
cash flow.
Test III. Identification
The following examples given are the advantages, disadvantages, and risks of the different types of investment. You need to
identify or classify them if they belong to advantages, disadvantages, or risks.
ADVANTAGES DISADVANTAGES RISKS
41. _______________________________ 46.________________________________ 51. ______________________
42. _______________________________ 47. ________________________________ 52. ______________________
43. _______________________________ 48.________________________________ 53. ______________________
44. _______________________________ 49. ________________________________ 54. ______________________
45. _______________________________ 50.________________________________ 55. ______________________
*Safe and easy to withdraw money *High potential to make money; can earn dividends.
* Can be expensive to pay premiums *If interest rates go up, bond prices go down.
*Might not get claims approved or takes time to process. *Earnings depend on the performance of investments.
*Can go up in value and you can earn from renting. *Expensive to buy; hard to sell fast.
* Prices can go up and down a lot, and it might be hard to sell quickly. *Protects you from financial problems
* There are fees; how much you earn depends on the fund’s performance. *Very low interest (small earnings)
*Keeps value over time, good for inflation. *A professional manages your money & less risky
*The stock value can drop.