TAKE YOUR TIME !!
BFIN
LAS 9
The risk-return tradeoff is the principle that potential return rises with an increase in risk. True
Risk is the income received on an investment plus any change in market price. False
A return is the variability of returns from those that are expected. False
Time value of money deals with future value and present value. True
The time value of money is the idea that money available at the present time has the same worth in the
future due to its potential earning capacity. False
SQ10
This is the current worth of a future sum of money or stream of cash flows given a specified rate of return.
Present value
Which of the following is not needed in solving for annuity. Principal
Which of the following is not needed in solving for simple interest. Number of times the interest is
compounded per year
Which of the following is not needed in solving for compound interest. Periodic payment at the end of
every period
On the part of the borrower, this is the interest paid on the original amount, or principal, borrowed. Simple
interest
This is a series of equal payments made at the end of consecutive periods over a fixed length of
time. Annuity
This is the value of a current asset at a specified date in the future based on an assumed rate of growth over
time. Future value
Which is not a component of return? Principal
This is a fee paid for using another party's money. Interest
This is the interest paid (earned) on any previous interest, as well as on the principal borrowed (lent).
Compound interest
LAS10
Glen is depositing Php 5,000 every
every year for about 4 years. The simple interest rate
rate is 10%. What Answer
is the total value of the money at the end of the 4th year?
A
Shella made a bank deposit worth Php 20,000. With 5% annual interest, how much is the total
interest after 3 years?
Answer
S
Hannah made a bank loan worth Php 200,000 with 5% interest compounded semi-annually (2
times in a year). If she will pay the whole amount at the end of the term,
term, how much will be the
the
value of the loan after 2 years?
Answer
A
John made a bank deposit worth Php 10,000. With 2% interest compounded annually, how much Answer
is the total interest after 2 years?
S
What is the present value of a grant worth Php 5,000 payable at the end of every month for 4
years, if money is worth 2% compounded monthly (12 times a year)?
Answer
C
SQ10
What is the present value of annuity of Php 1,500 payable at the end of every year for 2 years, if money is
worth 12%? Php 3,265.50
Shella made a bank deposit worth Php 21,550. With 5% annual interest, how much is the total interest after
3 years? Php 3,232.50
Ben needs to have Php 20,000 after two years. Assuming that he will only deposit once, with a 5% interest
compounded annually, how much will you deposit today? Php 35,434.43
Glen is depositing Php 5,500 at the end of every period for about 4 years. It has 10% interest rate
compounded annually. What is the total value of the money at the end of the 4th year? Php 25,525.50
Jenny made a bank deposit worth Php 20,550 which will earn 5% annual interest. What is the value of this
money after 3 years? Php 23,632.50
Hannah made a bank loan worth Php 200,550 with 5% interest compounded semi-annually (2 times in a
year). If she is to pay at the end of the period only, how much will be the value of the loan after 2 years?
Php 221,369.68
John made a bank deposit worth Php 30,555. With 5% interest compounded semi-annually(2 times a year),
how much will be the value of your money after 3 years? Php 35,434.43
John made a bank deposit worth Php 10,500. With 2% interest compounded annually, how much is the
total interest after 2 years? Php 424.20
Ken wants to have Php 100,000 after 5 years. If the bank pays 5% interest on deposits, how much must he
deposit today in order to have that amount in the future? Php 78,352.62
What is the amount of annuity of Php 1,555 payable at the end of every year for 2 years if interest rate is
10%? Php 3,265.50
LAS11
Generally, the higher the risk the higher the return can be. True
Investing also makes your money work for you and is considered as a valuable financial resource. True
Bonds are means of protection from financial loss. False
Common stockholders are usually paid first and common stockholders are paid if there is remaining
distributable income. False
Properties bought is not considered as investments. . False
SQ11
This is a term usually used to describe properties such as lands and buildings. Real eastate
These term describes the people who receive allocated profits in form of dividends. Stockholders
These are investment securities that enable investors to pool their money together into one professionally
managed investment. Mutual funds
This is a mutual fund term commonly used to describe the combined holdings in one form. Portfolio
These are securities that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings. Stocks
It is a contract in which an individual or entity receives financial protection or reimbursement against
losses from the insurer or the insurance company. Insurance
These are also known as a fixed-income security. These are debt instruments created for the purpose of
raising capital. Bonds
The value of equipement decreases as time passes by because it is being used. With this statement we can
say that the equipment ________ in value. Depreciate
This is an asset or item that is acquired with the expectation that it will generate interest, income or
appreciate its value in the future. Investment
Payments on insurances are called insurance _________.Premiums
LAS12
Ponzi scheme is a type of pyramid scheme, this is where money from new investors is used to provide a
return to previous investors. True
Real estate schemes are sold as short-term loans to buyers, construction loans to companies, or even as
shares in a building that will earn income and pay it out to investors. Scam artists offer high, guaranteed
rates of return to investors seeking steady income from a tangible asset like real estate. True
Boiler rooms cold call potential investors and pressure them to buy shares. Boiler room operators often set
up in a different jurisdiction or country than the people they target in order to avoid detection by
b y securities
regulators and enforcement agencies. True
Forex scams offer investors the opportunity to invest in foreign exchange, but in the end, the money is lost
to those running the scheme. True
Setting up a High-Yield Investment Program scheme is relatively cheap. Operators buy a domain name,
design a webpage, and publish it on the Internet. Once it's live on the Internet, the promoters are in
business. Their next step is to attract
attract investors from all over the world. True
SQ12
This is a form of microcap stock fraud that involves artificially inflating the price of an owned stock
through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher
price. Offshore investing scheme
This is a fraudulent investment scheme from illegitimate or non-existent
non -existent organizations outside your
country. Offshore investing scheme
This type of scheme is extremely difficult for your local law
l aw enforcement agencies to investigate because
the individuals involved are foreign criminals. Offshore investing scheme
This is a type of pyramid scheme, this is where money from new investors is used to provide a return to
previous investors. Boiler room scheme
Scammers mislead investors by suggesting that big financially sound institutions participate in their
programs, when in fact
fact such connections do not exist.
exist. Prime bank
A person earns by recruiting people who would pay a registration fee without getting any goods to in
exchange of their payments. The recruited person also earns in the same manner. Pyramid scam
This scheme can survive simply by persuading most existing participants to reinvest their money, with a
relatively small number of new participants Ponzi scheme
This scheme cold call potential investors and pressure them to buy
bu y shares. Boiler room operators often set
up in a different jurisdiction or country than the people they target in order to avoid detection by
b y securities
regulators and enforcement agencies. Boiler room scheme
This is a scheme that attempts to boost the price of owned stock through false recommendations,
misleading or greatly exaggerated statements in order to sell the cheaply purchased stock at a higher price.
Pump and dump
This offer investors the opportunity to invest in foreign exchange, but in the end, the money is lost to those
running the scheme. Forex scams
SQ13
Ken plans to buy a cell phone
phone worth Php 2,000. He plans to buy it after two month by
saving a part of his daily allowance.
Answer
N
Answer
S
Answer
S
Within 2 years, Jenny-a senior high school student will buy the Malacañang Palace.
Palace.
Answer
Within 2 years, Jenny-a senior high school student will buy the Malacañang Palace.
Palace.
Within 3 years, Anna plans to buy a lot worth Php 1,000,000 by loaning in PgIBIG.
N
After 200 years,
years, Jenny plans to build a house worth
worth Php 1,000,000
1,000,000 by loaning
loaning saving a Answer
part of her salary.
S
SQ13
Cherry paid the electricity and water bills. This statement best describes. Spending
Kiela went to the sarisari store and she bought food on account. This is to be paid when she gets her salary
net week. Borrowing
Garry gave Php100 for the BantayBata fund. Donating
This defines all financial decisions and activities of an individual or household, including budgeting,
insurance, mortgage planning, savings and retirement planning. Personal finance
Mr. Pan is working as a corporate accountant,
accountant, he earns Php50,000 in a month. This statement best
describes. Earning
Mr. Chen bought a land. Investing
John contributes every month to the SSS for his retirement benefits. Saving
Anna bought food and drinks. Spending
Ms Kelly had an emergency situation, she made a cash advance from her workplace worth Php10,000.
This statement best describes Borrowing
John earns Php 2,000 in a week. He always see to it that he deposits Php500 every week in his cooperative
personal account. This
This amount is reserved for
for future economic
economic activities.This statement best describes
Saving
LAS14
It is good to plan ahead on how to allocate your income for savings and expenses. True
Don't expect that you will be earning interest if you did not deposit an amount in your bank account. True
It is good to have negative credit record.False
Savings is only possible if income is lower than expenses. False
Don't take time to think about your financial goals, along with a realistic plan for achieving them. It's just a
waste of time. False
SQ14
Jen decided to deposit her money in a cooperative savings acccount because it yield higher interest than
bank savings account. Which
Which statement best depicts
depicts the situation? Compare interest rates
Which statement is correct? It is important know exactl
exactly
y what your goals are so you can create a plan
designed to achieve those objectives.
Jenny engages in time deposits in the bank. Which statement best depicts the situation? Start saving at
young age
Mr. Ken disburses an extra amount for his SSS and Pag-IBIG contributions. Which statement best depicts
the situation? Pay yourself first
Which is not a principle of personal finance? Start saving an old age
John, a government employee, plans retire at the age on 55. Which statement best depicts the situation?
Map your financial future
Which is not a principle of personal finance? Stay assured
Mr. John determines his monthly salary, overtime pays, taxes, SSS, Pag-IBIG and PhilHealth
contributions. Which statement best depicts the situation? Know your take home pay
Which statement is correct? Insurances can help you recover
recover in case of losses
Which is not a principle of personal finance? Sell insurance to avoid being wiped out by a financial loss,
such as an illness or accident.
BFIN SECOND QUARTER EXAM 50/50
"Statement I. Long-term goals should be planned in coordination with short-term and intermediate ones
Statement II. Setting and achieving short-term goals is the basis for achieving long-term goals. "
Select one:
a. Both Statements are False
b. Statement I is true;
true; Statement II is false
c. Statement I is False; Statement II is True
d. Both Statements are True Correct
Feedback
The correct answer is: Both Statements are True
Armi deposits Php 4,500 at the beginning of each month (12 times a year) in a fund that serves at 24%
compounded monthly. How much is the fund at the end of 3 years?
Select one:
a. Php 48,571
b. None of these
c. Php 283,654.15 Correct
d. Php 384,654.15
Feedback
The correct answer is: Php 283,654.15
Jenny decided to buy a lot to be used in the future for her planned business. She invested in
Select one:
a. Bonds
b. Bank deposit
c. Insurance
d. Real estate Correct
Feedback
The correct answer is: Real estate
Jen made a bank deposit worth Php 15,000. With 9% annual interest, how much is the future value of his
deposit after 5 years?
Select one:
a. Php 21,750 Correct
b. Php 28,500
c. Php 15,675
d. Php 13,500
Feedback
The correct answer is: Php 21,750
Which is not a basic principle of personal finance
Select one:
a. Start saving at young age
b. Know your take home
home pay
c. Don't borrow what you can't repay
d. Expend everything you have because you have lots of money Correct
Feedback
The correct answer is: Expend everything you have because you have lots of money
Which is not a basic principle of personal finance
Select one:
a. Map your financial future
b. Low returns means
means high risks Correct
c. Don't borrow what you can't repay
d. Budget your money
Feedback
The correct answer is: Low returns means high risks
The fruit trees attached on a farm is considered as
Select one:
a. Insurance
b. Real estate Correct
c. Product
d. Stocks
Feedback
The correct answer is: Real estate
John has a highly dangerous job. He pays premiums every month by depositing the money to the bank
account of the engaged company. He does this so that he will have remuneration in case he will be
suffering from an accident. John is investing on
Select one:
a. Bonds
b. Insurance Correct
c. Mutual funds
d. Bank deposits
Feedback
The correct answer is: Insurance
Which is a SMART goal?
Select one:
a. To graduate with the distinction - cum laude
b. Marry wants to buy 10 pcs of bond papers for her art class.
c. Chen
plans to buy
a new bag worth Php2,000. He plans to buy iitt after two month by ssaving
aving a part of his
daily
allowance.
Correct
d. Franz aims to go to Disneyland.
Feedback
The correct answer is: Chen plans to buy a new bag worth Php2,000. He plans to buy it after two month by
saving a part of his daily allowance.
What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if
interest rate is 10%?
Select one:
a. None of these
b. Php 8,717.13 Correct
c. Php 9,909.25
d. Php 14,304.80
Feedback
The correct answer is: Php 8,717.13
Scammers mislead investors by suggesting that big financially sound institutions participate in their
programs, when in fact
fact such connections do not exist.
exist.
Select one:
a. Offshore Investing Scheme
b. Ponzi scheme
c. Prime bank Correct
C orrect
d. Pump and dump
Feedback
The correct answer is: Prime bank
This is a type of security that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings.
Select one:
a. Mutual funds
b. Insurance
c. Real estate
d. Stock Correct
Feedback
The correct answer is: Stock
You need to have Php 51,000 after 3 years. Assuming that you will only deposit once with a 5% annual
interest, how much will you deposit today?
Select one:
a. Php 48,571
b. Php 44,348 Correct
c. Php 44,056
d. Php 16,190
Feedback
The correct answer is: Php 44,348
"Statement I. According to our lesson, before committing to significant expenditures, estimate how much
income is likely to be available for you.
Statement II. Two factors commonly influence your financial aspirations for the future. The first is the
time frame in which you would like to achieve your goals. The second is the type of financial need that
drives your goals. "
Select one:
a. Both Statements are False
b. Both Statements are True Correct
c. Statement I is true; Statement II is false
d. Statement I is False; Statement II is True
Feedback
The correct answer is: Both Statements are True
"Statement I. An investment is an asset or item that is acquired with the expectation that it will generate
interest, income or appreciate its value in the future.
Statement II. A bond is a type of security that signifies ownership in a corporation and represents a claim
on part of the corporation's assets and earnings. "
Select one:
a. Statement I is False; Statement II is True
b. Both Statements are False
False
c. Statement I is true; Statement II is false
d. Both Statements are True Correct
Feedback
The correct answer is: Both Statements are True
What will a deposit of Php 4,500 at 10% compounded semiannually be worth if left in the bank for six
years?
Select one:
a. Php 7,959.55
b. None of these
c. Php 8,181.55
d. Php 8,081.55 Correct
Feedback
The correct answer is: Php 8,081.55
This is a form of fraudulent investment operation where the individual or organization operator pays
returns to its investors from new capital paid to the operators by new investors recruited.
Select one:
a. Offshore Investing Scheme
b. Pump and dump
c. Ponzi scheme Correct
d. Prime bank
Feedback
The correct answer is: Ponzi scheme
What annual interest rate would you need in order to have an ordinary annuity of Php7,500 per year
accumulate to Php 279,600 in 15 years?
Select one:
a. 14%
b. None of these
c. 16%
d. 12% Correct
Feedback
The correct answer is: 12%
Ben is a senior high school student. Which of his goals is realistic?
Select one:
a. To buy all the candies in the world
b. To top the final exam Correct
Correct
c. To be the president of Africa after a year
d. To travel throughout space and live in Mars
Feedback
The correct answer is: To top the final exam
A senior high school student deposits a part of his salary to his bank account so that he will have funds for
future use. Which statement best depicts the situation?
Select one:
a. Pay yourself first
b. Know your take home
home pay
c. Start saving at young age Correct
d. Budget your money
Feedback
The correct answer is: Start saving at young age
You need to have Php 100,000 after 4 years. Assuming that you will only deposit once with a 10% annual
interest, how much will you deposit today?
Select one:
a. Php 22.727
b. Php 71,428.57 Correct
c. Php 68,301
d. Php 90,909
Feedback
The correct answer is: Php 71,428.57
Which is not included in SMART goal-setting guidelines
Select one:
a. Specific
b. Reaction-Oriented
Reaction-Oriented Correct
c. Measurable
d. Timely
Feedback
The correct answer is: Reaction-Oriented
Reaction-Oriented
If you require a 9 percent annual return on your investments, you would prefer Php15,000 five years from
today rather than an ordinary annuity of Php 1,000 per year for 15 years.
Select one:
a. True Correct
b. Cannot be determined
determined
c. May be true and may be false
d. False
Feedback
The correct answer is: True
This is a type of security that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings.
Select one:
a. Bank deposit
b. Insurance
c. Bonds Correct
d. Real estate
Feedback
The correct answer is: Bond
Marry wants to buy 10 pcs of bond papers for her art class. The statement best describes
Select one:
a. Consumable-product goals Correct
b. Intermediate goal
c. Durable-product goals
d. Long-term goal
Feedback
The correct answer is: Consumable-product goals
Jennie, the owner of Hawaii Resort used her money to put up an additional cottage. Jennie invested in
Select one:
a. Stocks
b. Product
c. Insurance
d. Real estate Correct
Feedback
The correct answer is: Real estate
Which is not a principle of personal finance?
Select one:
a. Pay yourself first
b. Start saving an old age Correct
c. Know your take home pay
d. Budget your money
Feedback
The correct answer is: Start saving an old age
Comments
Make comment or override mark
Response history
Step Time Action State Marks
1 16/10/17, 18:53 Started Not yet answered
2 16/10/17, 19:03 Saved: Start saving an old age Answer saved
3 16/10/17, 19:04 Attempt finished Correct 1.00
Question 28
Correct
Mark 1.00 out of 1.00
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Question text
Kelly has Php 100,000 in her savings account. Kelly invests in
Select one:
a. Insurance
b. Bank deposits Correct
c. Bonds
d. Mutual funds
Feedback
The correct answer is: Bank deposits
This is a collection of investments from one or more categories.
Select one:
a. Bank deposit
b. Bonds
c. Real estate
d. Mutual fund Correct
Feedback
The correct answer is: Mutual fun
Jen is a senior high school student. Which of her goals is realistic?
Select one:
a. To travel around the world without riding any vehicle
b. To save money for
for 200 years
c. To graduate with the distinction - cum laude Correct
d. To buy all the dress in the Philippines
Feedback
The correct answer is: To graduate with the distinction - cum laude
Which goal is action oriented?
Select one:
a. To buy a television set
b. To buy a television set
set by saving a part of my salary.
salary. Correct
c. To buy a car within 10 months
d. To buy a Php 1,000,000 worth car
Feedback
The correct answer is: To buy a television set by saving a part of my ssalary.
alary.
How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of
6 percent?
Select one:
a. Php 8,975.38
b. Php 6,897.76
c. Php 6,433.38 Correct
d. Php 7,021.80
Feedback
The correct answer is: Php 6,433.38
"Statement I. A SMART financial goal need not be action-oriented
Statement II. A SMART financial goal must be timely"
Select one:
a. Statement I is False; Statement II is True Correct
b. Both Statements are True
c. Statement I is true; Statement II is false
d. Both Statements are False
Feedback
The correct answer is: Statement I is False; Statement II is True
"Statement I. Ordinary annuity means that periodic payments are made at the end of each payment interval
while nnuity due means that periodic payments are made at the beginning of each payment interval.
Statement II. Fixed capital are funds used for its day-to-day operations"
Select one:
a. Both Statements are True
b. Statement I is true;
true; Statement II is false
false Correct
c. Both Statements are False
d. Statement I is False; Statement II is True
Feedback
The correct answer is: Statement I is true; Statement II is false
Jen made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his
deposit after 5 years?
Select one:
a. Php 30,000 Correct
b. Php 25,000
c. Php 16,500
d. Php 15,500
Feedback
The correct answer is: Php 30,000
"Statement I. A return is the variability of returns from those that are expected.
Statement II. The time value of money is the idea that money available at the present time has the same
worth in the future due to its potential earning capacity"
Select one:
a. Statement I is true; Statement II is false
b. Both Statements are False
False Correct
c. Both Statements are True
d. Statement I is False; Statement II is True
Feedback
The correct answer is: Both Statements are False
These product goals usually involve infrequently purchased, expensive items such as appliances, cars, and
sporting equipment; these consist of tangible items.
Select one:
a. None of these
b. Consumable-product goals
goals
c. Durable-product goals Correct
d. Specific Product Goald
Feedback
The correct answer is: Durable-product goals
Which is not a principle of personal finance?
Select one:
a. Stay insured
b. Borrow what you can't
can't repay Correct
c. Budget your money
d. Map your financial future
Feedback
The correct answer is: Borrow what you can't repayComments
Marrie pays monthly premiums to a company with the agreement that Marrie will be imdemnified in case
her house gets damaged because of a natural disaster or it gets burned due to an unwanted accident. This is
a type of
Select one:
a. Insurance Correct
b. Real estate
c. Bank deposit
d. Bonds
Feedback
The correct answer is: Insurance
"Statement I. The risk-return tradeoff is the principle that potential return rises with an increase in risk.
Statement II. Time value of money deals with future value and present value."
Select one:
a. Both Statements are False
b. Statement I is true;
true; Statement II is false
false
c. Statement I is False; Statement II is True
d. Both Statements are True Correct
Feedback
The correct answer is: Both Statements are True
Garry plans to buy a calculator to aid him in his math class. The statement best describes
Select one:
a. Intermediate goal
b. Durable-product goals
goals Correct
c. Consumable-product goals
d. Long-term goal
Feedback
The correct answer is: Durable-product goals
"Statement I. Short-term goals have a time frame from one to five years.
Statement II. intermediate goals involve financial plans that are more than five years off, such as
retirement, money for children's college education, or the purchase of a vacation home"
Select one:
a. Both Statements are True
b. Statement I is true;
true; Statement II is false
c. Statement I is False; Statement II is True
d. Both Statements are False Correct
Feedback
The correct answer is: Both Statements are False
Question text
How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of
8 percent?
Select one:
a. Php 6,433.38
b. Php 6,913.79 Correct
c. Php 6,366.10
d. Php 4,800.27
Feedback
The correct answer is: Php 6,913.79
What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10
years?
Select one:
a. Php 14,851.80 Correct
b. None of these
c. Php 14,304.80
d. Php 13,997.40
Feedback
The correct answer is: Php 14,851.80
This is a type of investment which consists of money placed into a banking institution.
Select one:
a. Bonds
b. Real estate
c. Insurance
d.
Bank deposit Correct
Feedback
The correct answer is: Bank deposit
Which is not a principle of personal finance?
Select one:
a. Purchase insurance to avoid being wiped out by a financial loss, such as an illness or accident.
b. Obtain rate information
information from multiple financial services firms to get the best value for your money
money
c. Be an irresponsible borrower who repays as promised, showing you are worthy of getting credit in the
future. Correct
d. An annual budget to identify expected income and expenses, including savings, will help you live within
your income.
Feedback
The correct answer is: Be an irresponsible borrower who repays as promised, showing you are worthy of
getting credit in the future.
John made a bank deposit worth Php 10,000. With 0.1% annual interest, how much is the future value of
his deposit after 4 years?
Select one:
a. Php 14,000
b. Php 10,400
c. Php 10,040 Correct
d. Php 11,000
Feedback
The correct answer is: Php 10,040
Which of the following is not needed in solving for annuity
Select one:
a. Number of times the interest is compounded per year
b. Periodic payment
payment at the end of every period
c. Interest rate
d. Principal Correct
Feedback
The correct answer is: Principal
What will a deposit of Php 4,500 at 7% compounded annual interest be worth if left in the bank for nine
years?
Select one:
a. Php 8,385.78
b. Php 8,273.25 Correct
c. None of these
d. Php 8,279.23
Feedback
The correct answer is: Php 8,273.25
This is the management of money and financial decisions for a person or family including budgeting,
investments, retirement planning and investments
Select one:
a. None of these
b. Personal Finance
Finance Correct
c. Corporate Finance
d. Business finance
Feedback
The correct answer is: Personal Finance
~JRB