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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

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 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 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 organizations outside your country. Offshore investing scheme

This type of scheme is extremely difficult for your local law 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 such connections do not 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 shares. Boiler room operators often set up in a different jurisdiction or country than the people they target in order to avoid detection by 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

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, 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 amount is reserved for future 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 statement best depicts the situation? Compare interest rates

Which statement is correct?  It is important know exactly 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 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; 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 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 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 it after two month by saving 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 such connections do not exist.
Select one:
a. Offshore Investing Scheme
b. Ponzi scheme
c. Prime bank Correct
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
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
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 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 Correct
c. Measurable
d. Timely
Feedback
The correct answer is: 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
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
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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
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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 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 by saving a part of my 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 salary.

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; Statement II is 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 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
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 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; 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

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 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; 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 from multiple financial services firms to get the best value for your 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 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 Correct
c. Corporate Finance
d. Business finance
Feedback
The correct answer is: Personal Finance

~JRB