BFIN SECOND QUARTER EXAM
Q1. Statements on coordinating long-term and short-term goals:
Answer: Both Statements are True
Q2. Not a basic principle of personal finance:
Answer: Expend everything you have because you have lots of money
Q3. Not a basic principle of personal finance:
Answer: Low returns means high risks
Q4. Not a principle of personal finance:
Answer: Start saving an old age
Q5. Not a principle of personal finance:
Answer: Borrow what you can't repay
Q6. Not a principle of personal finance:
Answer: Be an irresponsible borrower who repays as promised, showing you are worthy of getting credit in the future.
Q7. Statements on estimating income before spending and factors influencing financial goals:
Answer: Both Statements are True
Q8. Management of money for a person/family including budgeting, investments, and retirement planning:
Answer: Personal Finance
Q9. Jenny buys a lot for a future business. This is an investment in:
Answer: Real estate
Q10. Fruit trees attached to a farm are considered:
Answer: Real estate
Q11. John pays monthly premiums for remuneration in case of an accident. This is an investment in:
Answer: Insurance
Q12. Scam where investors are misled about the involvement of large financial institutions:
Answer: Prime bank
Q13. A security signifying ownership in a corporation:
Answer: Stock
Q14. Statement I defines investment. Statement II defines a bond as signifying ownership:
Answer: Both Statements are True
Q15. Fraudulent investment paying returns to earlier investors with capital from new investors:
Answer: Ponzi scheme
Q16. A security signifying ownership in a corporation and a claim on assets:
Answer: Bond
Q17. Jennie uses money to build a new cottage for her resort. This is an investment in:
Answer: Real estate
Q18. Kelly has Php 100,000 in her savings account. This is an investment in:
Answer: Bank deposits
Q19. A collection of investments from one or more categories:
Answer: Mutual fund
Q20. Marrie pays monthly premiums to be indemnified for house damage. This is a type of:
Answer: Insurance
Q21. Investment consisting of money placed into a banking institution:
Answer: Bank deposit
Q22. Fund value: Armi deposits Php 4,500/month (annuity due) for 3 yrs at 24% compounded monthly:
Answer: Php 283,654.15
Q23. Future value: Jen deposits Php 15,000 for 5 years with 9% simple annual interest:
Answer: Php 21,750
Q24. Present value of an annuity due of Php 2,500/year for 4 years at 10%:
Answer: Php 8,717.13
Q25. Deposit today to have Php 51,000 in 3 years at 5% annual interest:
Answer: Php 44,348
Q26. Value of Php 4,500 in 6 years at 10% compounded semiannually:
Answer: Php 8,081.55
Q27. Annual interest rate needed for an ordinary annuity of Php 7,500/year to accumulate to Php 279,600 in 15 years:
Answer: 12%
Q28. Deposit today to have Php 100,000 in 4 years at 10% annual interest:
Answer: Php 71,428.57
Q29. At 9% annual return, you would prefer Php 15,000 in five years over an ordinary annuity of Php 1,000/year for 15 years:
Answer: True
Q30. Value of an ordinary annuity of Php 650/year in 8 years at 6% annual interest:
Answer: Php 6,433.38
Q31. Value of an ordinary annuity of Php 650/year in 8 years at 8% annual interest:
Answer: Php 6,913.79
Q32. Value of a Php 4,500 deposit in 10 years at 12% compounded monthly:
Answer: Php 14,851.80
Q33. Future value: Jen deposits Php 15,000 for 5 years with 20% simple annual interest:
Answer: Php 30,000
Q34. Future value: John deposits Php 10,000 for 4 years with 0.1% simple annual interest:
Answer: Php 10,040
Q35. Value of Php 4,500 in 9 years at 7% compounded annually:
Answer: Php 8,273.25
Q36. Not needed when solving for an annuity:
Answer: Principal
Q37. Statements on ordinary annuity/annuity due and fixed capital:
Answer: Statement I is true; Statement II is false
Q38. Example of a SMART goal:
Answer: 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.
Q39. A realistic goal for Ben, a senior high school student:
Answer: To top the final exam
Q40. A senior high school student saves part of his salary for the future. This depicts:
Answer: Start saving at young age
Q41. Not included in SMART goal-setting guidelines:
Answer: Reaction-Oriented
Q42. Marry wants to buy 10 pcs of bond paper for her art class. This is a:
Answer: Consumable-product goals
Q43. A realistic goal for Jen, a senior high school student:
Answer: To graduate with the distinction - cum laude
Q44. An action-oriented goal:
Answer: To buy a television set by saving a part of my salary.
Q45. Garry plans to buy a calculator for his math class. This is a:
Answer: Durable-product goals
Q46. Statements on SMART goals being action-oriented and timely:
Answer: Statement I is False; Statement II is True
Q47. Statements defining time frames for short-term and intermediate goals:
Answer: Both Statements are False
Q48. Statements defining return and the time value of money:
Answer: Both Statements are False
Q49. Goal type involving infrequently purchased, expensive items like cars and appliances:
Answer: Durable-product goals
Q50. Statements on the risk-return tradeoff and the time value of money:
Answer: Both Statements are True
