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Finance Gdocs
a. Conservative
b. Tax minimizing
c. Moderate
d. Aggressive
● Maria decides to invest some of her money. She doesn’t like to take big risks, and she wants to be able to access all of her money at all
times. She also doesn’t mind not earning much interest. Maria should invest her money in a
a. Savings account
b. Mutual fund
c. Stocks
d. Money market account
● is/are determined by the income that the investment generates and the capital gain of the investment over the investment
horizon.
a. Safety and risk
b. Risk-return trade-off
c. Risk-free rate of return
d. Return on investment - not sure
● Which of the following investments gives the investor part ownership of a corporation:
a. Real estate
b. Money market account
c. Stock - google
d. collectibles
● This type of risk affects the entire market, it is not possible to eliminate the risk through diversification. Factors such as an economic
crisis, increasing interest rates, changes in consumer purchasing power, political activity, and wars all represent sources of this risk.
a. Business failure risk
b. Inflation risk
c. Systematic risk
d. Interest rate risk
● is the process of placing money in a medium such as stocks or bonds in the expectation of receiving a future benefit.
a. Saving
b. Investing
c. Speculating
d. borrowing
● The lowest interest rate is usually earned on a
a. Money-market account
b. Passbook account
c. Time deposit
d. Mutual fund
● This universal rule of investing means that if you want a higher level of return, you should expect greater risk exposure.
a. Safety and risk
b. Risk-return trade-off
c. Risk-free rate of return
d. Return on investment
● is a high-risk investment made in the hope of earning a relatively large profit in a short time. Such investments offer the
possibility of larger dollar returns, but if they are unsuccessful, you may lose most or all of your initial investment
a. Stock
b. Bond
c. Collectibles
d. Speculative investment
● is a type of investment vehicle wherein the issuer agrees to pay investors a fixed interest rate for a fixed period of time.
a. Stock
b. Mutual fund
c. Bond
d. Real estate
● Juan invested P30,000 in the stock market. With the stock market’s average yearly gain of 10 percent, his original P30,000 grew to
P33,000 after one year. In two year’s time, his P30,000 became P 36,300. The year after that, his original investment had become
P39,900. Juan’s investment grew as a result of
a. Globalization
b. Opportunity cost
c. Banking services
d. Compounding
● is the process of placing money in a medium such as stocks or bonds in the expectation of receiving a future benefit
a. Saving
b. Investing
c. Speculating
d. Brokering
● Which of the following are examples of ownership investments:
a. Certificates of deposit and bonds
b. Savings account and stocks
c. Stocks and bonds
d. Collectibles and real estate