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Fin 121 Answer Key
Fin 121 Answer Key
Fin 121 Answer Key
Transaction costs
A: include the financial and non-financial costs of completing a given economic
transaction
The following are physical features of Philippine money are present in a paper bill,
except?
A: Material coding
Characteristics of money
A: Money must be available but only in limited supply
A medium of exchange is
A: something that is generally acceptable in exchange for goods and services
Function of money which eliminates certain challenges that every barter transaction
presents.
A: medium of exchange
The fact that using money avoids the double coincidence of wants necessary in a
barter economy illustrates which function of money?
A: medium of exchange
Function of money which presents a very strong influence on the quality of goods
and services that are produced
A: medium of exchange
A money which originates from the use of high value crops or items as the means of
exchanging goods is called commodity money
A: true
It can be a shell, a metal coin, or a piece of paper with historic image on it, but the
value that people place on it has nothing to do with its physical value.
A: money
A unit of account
A: something that circulates and provides a standardized means of evaluating the
relative price of goods and services
Function of money in which it is used not only for present transactions but also for
future transactions.
A: Store of value
Which of the following affects the amount of money a person is willing to hold?
A: all of these
Money should be capable to physically stay long enough for circulation is what
attribute of money?
A: durability
The following are examples of credit money, choose the incorrect one
A: P1,000 bill
You deposit P40,000 in currency in your checking account. The bank holds 20
percent of all deposits as desired reserves. As a direct result of your deposit, your
bank will create
A: P32,000 of new money
Store of value
A: the ability of money to command purchasing power in the future
It is an attribute of money that it should have the capability of being carried anywhere
with ease.
A: portability
The superiority of one monetary standard over another is dictated as
A: public confidence
If you fall behind on your credit card payments, or you become delinquent the credit
card company is not allowed to report this to anyone. This is confidential
information.
A: false
If you keep poor records and write a check for more than you have in your checking
account, you need
A: overdraft protection
Service charge" includes interest, fees, service charges, discounts, and such other
charges incident to the extension of credit as the Board may be regulation prescribe.
A: false
Refers to short or intermediate term loans use to fund the acquisition of something
for personal use or consumption
A: consumer credit
MCLT refers to an organization’s money owned and controlled by its members who
can borrow at low interest rates from a fund that they saved as a group
A: sinking fund
It is not a good idea to pay your balance in full each month because this will upset
the credit card company.
A: false
Credit card companies can charge you a late fee even if you are only a couple of days
late
A: true
It is a loan by a bank to its own client/customer without the employ of a third party
like dealers and other middle handlers
A: direct credit
Credit card companies don't like to give credit cards to people in their late teens and
early twenties.
A: false
Also known as annual percentage rate or APR. It is the percentage of your balance
you pay as interest.
A: Interest rate
Asset/s that can back or act as security for the loan. It gives the lender the
assurance that if the borrower defaults on the loan, the lender can get something
back by repossessing it
A: Collateral
Three digit number that predicts how likely you are to pay back the credit you borrow.
A: Credit score
Perks cardholders receive when they sign up for a credit card, like points, frequent
flyer miles, and cash back.
A: Member rewards
A yearly charge some credit card companies charge a holder simply for owning a
card.
A: Annual Fee
one of the bases of credit, which can be seen by the applicant's debt-to-income ratio
A: capacity
The lowest amount of money you are required to pay on your credit card each month.
A: Minimum payment due
this can refer to how a borrower intends to use the money, when and how much, or in
what way will he pay back
A: conditions
the amount of money/ resources owned by the potential borrower
A: capital
The amount of money you need to pay to reimburse the charges you put on your
card. It is what you owe
A: Balance due
Insurance companies can determine what rates you will pay for car insurance based
on your credit score.
A: true
Given a lost or stolen card your potential losses with a debit card are
A: greater than with a credit card
Refers to credit intended for financing usually high capital outlay projects usually
involves financial outlay intended for capital expenditure (CAPEX)
A: industrial credit
Credit cards can only be used to buy things. They cannot be used to obtain cash
A: false
These are creditors who extend credit with high interest rates
A: loan sharks
If you have line of credit you are less likely to be tempted to make purchases that you
cannot afford
A: false
These are creditors who extend credit with high interest rates
A: confidence
A bank loses reserves whenever it pays out cash or transfers funds by wire for its
depositors
A: true
A central bank
A: is responsible for the conduct of a country's monetary policy
These banks focus on accumulating and investing depositors’ savings, while also
providing short-term working capital, and medium- and long-term financing. The
main clients of these banks are businesses engaged in agriculture, services, industry
and housing, and diversified financial and allied services, in addition to other markets
and constituencies, especially individuals and small- and medium-size
enterprises.This bank category is made up of savings and mortgage banks, private
development banks, stock savings and loan associations.
A: thrift banks
The BSP
A: controls and manages our country's money supply
If required reserves are Php175,000.00 and deposits are Php10M, what is the
required reserve ratio?
A: 1.75 percent
Bank managers lend the excess reserves created when new deposits come in
because they want to
A: earn a profit
While doing everything that a commercial bank can do, these banks are also allowed
to perform underwriting and other functions of investment houses. They can also
invest in non-allied undertakings, as well as own up to 100% of the equity in a thrift
bank, a rural bank, a financial allied enterprise, or a non-financial allied enterprise.
A: universal banks
A type of banks that can handle your regular financial needs. They accept deposits,
allow withdrawals, offer checking account and loan services, and have products like
savings accounts and certificates of deposit. Both individuals and organizations are
the usual customers of such banks.
A: commercial banks
When bank deposits increase from P1 million to P2 million, banks' required reserves
increase from P100,000 to P200,000. The required reserve ratio is ________
A: 0.10
Popular in rural communities, these banks are tasked with providing basic financial
services to residents. These are meant to help promote and expand the local
economy in an orderly and effective manner. These banks can help farmers through
the stages of production, from buying seedlings until marketing of their produce.
A: rural banks
Debtor means any person engaged in the business of extending credit (including any
person who as a regular business practice make loans or sells or rents property or
services on a time, credit, or installment basis, either as principal or as agent) who
requires as an incident to the extension of credit, the payment of a finance charge.
A: false
RA 3765 is hereby declared to be the policy of the State to protect its citizens from a
lack of awareness of the true cost of credit to the user by assuring a full disclosure
of such cost with a view of preventing the uninformed use of credit to the detriment
of the national economy.
A: true
Banks create monetary base money when they issue loans.
A: false
The minimum percentage of deposits that a depository institution must hold and
cannot use for lending is known as the
A: required reserve ratio
Is the primary function of a bank for those who can save money but cannot utilize in
profitable sectors.
A: Accepting Deposit
Banks are profit-oriented business organizations.So they have to offer this service to
the public and generate interest from them as profit. After keeping certain cash
reserves, banks provide short-term, medium-term and long-term loans to needy
borrowers.
A: Loan Services
Banks provide cheque pads to the account holders. Account holders can draw
cheque upon the bank to pay money. Banks pay for cheques of customers after
formal verification and official procedures.
A: Check Payment
Also known as M-Banking is a term used for performing balance checks, account
transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA)
A: Mobile Banking
When customers have to deposit certain fund in governmental offices or courts for a
specific purpose, a bank can present itself as the guarantee for the customer, instead
of depositing fund by customers. When customers have to deposit certain fund in
governmental offices or courts for a specific purpose, a bank can present itself as
the guarantee for the customer, instead of depositing fund by customers.
A: Bank Guarantee
Personalized financial and banking services that are traditionally offered to a bank’s
digital, high net worth individuals (HNWIs). For wealth management purposes,
HNWIs have accrued far more wealth than the average person, and therefore have
the means to access a larger variety of conventional and alternative investments.
A: Private banking
They are the banks front lines and are often the face of the company to clients and
potential employees alike
A: bank staff
Sometimes, the bank provides this facilities to its customers through which they are
allowed to withdraw more than their deposits. Interest is charged from the
customers on the overdrawn amount.
A: Overdraft
Through this method, a holder of a bill of exchange can get it discounted by the bank,
in a bill of exchange, the debtor accepts the bill drawn upon him by the creditor (i.e.,
holder of the bill) and agrees to pay the amount mentioned on maturity. After making
some marginal deductions (in the form of commission), the bank pays the value of
the bill to the holder. When it matures, the bank gets its payment from the party,
which had accepted the bill.
A: Discounting of Bills of Exchange
Coffey Bean shop sold the ff coffee beans ; ¼ kilo ; 1 ½ kilos, ¾ kilo, 2 kilos and 3 1/8
kilos of mint flavored variant coffee beans one afternoon. How many kilos does the
shop sold in that afternoon? Take note answers should be in lowest term fraction w/
complete label - ? kilos sold
A: 7 5/8 kilos sold
XYZ Property Ventures acquire 5 1/2 hectares of lot for housing subdivision. They
plan to use 1/5 hectares for a park, how much will be left for the housing site?
A: 5 3/10 hectares left for housing site
XYZ Property Ventures acquire 5 1/2 hectares of lot for housing subdivision. They
plan to use 1/5 hectares for a park. What will be the total area for housing site, if
XYZ will purchase the 3 1/3 hectare of the adjacent lot in which 1/8 of which is the
A: 8 61/120 hectares left for housing site
3/12 = ?/4
A: 1
3 cakes arrived as a birthday present for Arabella 1/2 of it was eaten by her friends
earlier. How many more persons can have cake if each is estimated to consume 1/4
cake.
A: 6 persons
This model represents 2/8. Which model represents a fraction equivalent to 2/8?
A: A
Coffey Bean shop sold the ff coffee beans ; ¼ kilo ; 1 ½ kilos, ¾ kilo, 2 kilos and 3 1/8
kilos of mint flavored variant coffee beans one afternoon. How much is left if the
shop have 25kilos upon opening that afternoon? Take note answers should be in
lowest term fraction w/ complete label - ? kilos left
A: 17 3/8 kilos left
Dan and David are on the track team. Dan runs 1/4 mile each day. David runs 3/4
mile each day. Which statement is correct?
A: David runs farther than Dan each day
How many kls of salt is needed for a pastry shop using 1/8 kl daily this whole month
of April 2021? note that they only use 1/2 of the daily requirement whenever it's a
holiday and a Sunday. Answer should be in lowest term fraction
A: 3 5/16kls
When using long division, what number goes inside your division box
A: top number
- 2.09 - 15.271
A: -17.361
Use the UC transmutation to compute tentative average grade of Bela, given the
following scores for class standing; 7/10, 21/25, 12/15 and 75/110 for Prelim
exam.
Pls take note that Class Standing is 2/3 of the grade and major exam is 1/3. What is
Bella's prelim grade then?
A: 2.5
Of the 728 HD LED TV seven were returned because its defective. What is the
percentage of the defective? Round off to nearest hundredth.
A: 9.62%
You saved Php15,000 a month to raise money for a 20% down payment of your
dream house. How much is the price of the dream house if you saved for 3 years to
pay for it down payment? Complete answer with Php and in hundredth place
A: Php 2,700,000.00
4.16 - 9.043
A: -4.883
Baking cupcakes takes around 35mins. per batch. maximum of 20 cupcakes can fit
per batch. How many hrs will it take to bake 2doz of cupcakes? Answer should be in
hrs & mins
A: 1 hr and 10 mins
How many inches are there in 355 millimeters? round off to nearest tenths (25.4 mm
in an inch)
A: 14.0 inches
If you weight 116 lbs then how much do you weight in kilogram? (Round off nearest
tenths)
A: 50.5 kg
Before I started the USANA reset program I weigh 166 lbs. After the program my
current weight is 63.10kgs .How many pounds did I shed off? round off to nearest
tenths
A: 27.2 lbs
Before I started the USANA reset program I weigh 166lbs. After the program my
current weight is 63.10kgs .What is the percentage decrease of my weight (nearest
tenths)
A: 16.4%
If your height is 5ft and 1 inch how tall are you in centimeters? (nearest tenths)
A: 154.9 cm
How many cups of water needed to make a 4pcs of 12-inch pizza crust if each crust
would need 1pint
A: 8 cups
Free on Board (FOB) is a shipment term used to indicate whether the seller or the
buyer is liable for goods that are damaged or destroyed during shipping.
A: true
Choose the better buy 1 litter milktea at 145 or 2 milktea at 160z. each @73 each?
A: buy the 1 liter Milktea
The list price for a coat is Php300.00. A series discount of 20/15/5 is being offered
for any orders worth above Php9,000.00 net. Find how many coats to buy to avail of
the series discounts
A: at least 47 coats
Which is more advantageous/economical to purchase, the 1 can 1kg Milo @ 350 per
can or the 4 doz. 24g/sachet @88/doz ?
A: The 4 doz. sachets
The term FOB shipping point is a contraction of the term "Free on Board Shipping
Point." The term means that the buyer takes delivery of goods being shipped to it by
a supplier once the goods leave the supplier's shipping dock. Since the buyer takes
ownership at the point of departure from the supplier's shipping dock, the supplier
will not record a sale at that point.
A: false
Find the mark-up on retail for an article with a wholesale price of P20 that sells for
P35, find the answer to the nearest tenth.
A: 75.0%
select the correct Final Discount date for term 3/10, n/30. Please take note that the
seller doesn't count days with LEGAL HOLIDAY.
A: Invoice date:June 11, 2020 → June 22, 2020,
Invoice date: Jul. 21, 2021 → July 31, 2021,
Invoice date: Apr. 28, 2016 → May 9, 2016,
Invoice date: Dec. 18, 2020 → Dec. 29, 2020,
Invoice date: Feb. 28, 2021 → Mar 10, 2021,
Invoice date: Feb. 26, 2020 → Mar 7, 2020,
Invoice date: Feb. 27, 2016 → Mar 8, 2016
A trader sold a television for $1500. The price should he sell to get a profit of 20% is
A: 1,800
The mark price of a doll is 950 and 5% discount is offered on cash payment. The
amount to be paid should be
A: 903
If the sales price of an item is less than its cost price, then the difference is said to
be
A: loss
Sara and Ali earned a profit of P500, 000 from a business and their ratio of
investment was 5:8 respectively. The profit of each should be
A: P192,308 and P307,692
It is the term for documents which help businesses keep track of sales and various
types of discounts which help them buy products at lower costs to increase profits
A: invoices
It indicates that the title and responsibility of goods transfer from the seller to the
buyer when the goods are placed on a delivery vehicle/shipping point ... Therefore,
the seller is not responsible for the goods after it left in transit to the buyer.
A: F.O.B shipping point
You are to buy rubber shoes for your P.E class your mom gave you Php 2000 for 1500
for the shoes and the 500 for your meals/snacks & taxi transport i but the list price of
the Nike shoes you want so much is Php 3,950 it so happen that payday sale it is
marked down at 35% for credit card purchased and additional 25% discount for Cash
purchase. How much is the net CASH price of the said shoes ? Can you buy it?
A: Php 1,925.60 and it's possible to buy it
If the Cost Price is 850 and the profit is 10%, then the sales price should be
A: 935
A deduction that is offered on the mark price or the list price of items by the seller to
the purchaser is called
A: discount
The selling price of 15 books is equal to the cost price of 12 books. The profit
percentage should be
A: 25%
During sale, a shop offers a discount of 8% on marked price. If the marked price is
$5500, then the purchase price of an oven should be
A: 5060
If the Sales Price is 672 and the profit is 5%, then the cost price should be
A: 640
When converting to mark-up on Cost from Mark-up on Selling Price. The answer is
always lower than the given mark-up on Selling Price
A: true
A face shield Priced at 1800 mark-down at 50% will have an absolute loss of 10 if the
a face shield is bought@90 and with OPEX charge @10each.
A: false
Is the point in which the reduced price just covers cost plus the overheads or
operating expenses(OPEX)
A: break-even point
A succulent costs 3 for 100 and the desired mark-up is 60% on cost, how much
would be the Price for 2 dozens of succulents? round off to nearest hundreds
A: P 1,300.00
Is the result of a reduced price that is below the cost of the merchandise alone
A: absolute loss
When converting to mark-up on Selling Price from mark-up on Cost, the answer is
always higher than the given mark-up on cost.
A: false
A snake plant cost P 103.60 and being sold at 35% mark-up on cost. What would be
the selling price round off to nearest tens
A: Php 140.00
How much would be the Price for a lobster dish, if its cost is Php 450 and the gross
profit target is 75% base on Price?
A: Php 1,800
When converting to mark-up on Cost from Mark-up on Selling Price. The answer is
always higher than the given mark-up on Selling Price
A: false
The incurrence of absolute loss is possible in business especially if the items are
very old model and occupies a lot of space in the warehouse
A: true
An old model Merchandise initial Cost is P 7,000 it is being mark up at 30% on Selling
Price. The said merchandise is now mark down at 40% off the Price. How much is
the mark down?
A: P 4,000
When converting to mark-up on Selling Price from Mark-up on Cost. The answer is
always lower than the given mark-up on Cost
A: true
It occurs when the reduced priced is less than the break-even point. It is the
difference between the Break-Even Point (BEP) and the Reduced Selling Price.
A: operating loss
Convert 45% mark-up on selling price to percent on cost. Round off to tenths place in
percentage
A: 81.8%
Violets R BLU flower shop purchased 12 dozens of long stemmed roses for
Php9,450. If the 25% of the roses cannot be sold and the company imposed a mark
– up of 100% on cost, find the regular selling price per dozen of Roses.
A: Php 2,100
It is used to stimulate sales volume especially when the merchandise does not sell at
its marked price. The difference between the Original Price less the Reduced Price
the term is called?
A: markdown
Selling in business means selling products at a price which is cost plus mark up
A: true
An old model Merchandise initial Cost is P 7,000 it is being mark up at 30% on Selling
Price. The said merchandise is now mark down at 40% off the Price. The Reduced
Price is? (answer in figure only no decimal & no Peso sign)
A: 6,000
Toby's Sports purchases mountain bikes at a cost of P38,000 each. If the co.'s OPEX
is 20% of cost and a net PROFIT of 25% of Total Cost is desired. Find the Selling
Price of each bike
A: Php 57,000
Mr. Garcia borrowed P1,000,000 for the expansion of his business. The rate of
interest is 7%. The loan is to be repaid in full after one year. How much is to be paid
after one year?
A: none of these
When you consolidate your credit card debt, you are taking out a new loan. You have
to repay the new loan just like any other loan. If you get a loan consolidation and
keep making more purchases with credit, it's more likely that you won’t succeed in
paying down your debt.
A: True
A couple wants to buy a house worth Php 1,270,00. They have saved 100k for the
equity downpayment and they can get a 7 1/2% , 30-yr mortgage. How much is their
monthly loan amortization? (answer in pure figures no peso sign or comma & round
off to nearest tens)
A: 8890
Right after marriage you decided to get a housing loan w/ term of 30yrs. The house
is worth 1M but you need to pay the 5% for the equity. How much will be the loan
amount and the monthly loan payment? (you can refer to the book table factor on
real estate loan)
A: 950,000 loan w/ 7305.50 monthly payment
Solve for the monthly amortization payment for a CONDO loan with a list price of Php
1.2M , the required equity is 6% of the Price. BDO offers to finance the remaining
balance for 8.5% interest rate. (answer should be in figure only NO peso sign and in
nearest tenths)
A: 11,110.80
Open-end loans, like credit cards, are the same as closed-end loans, like auto loans,
in terms of how the funds are distributed and whether a consumer that has started
to pay down the balance can withdraw the funds again.
A: false
(Chattel mortgage). A person borrowed P1,200,000 for the purchase of a car. If his
monthly payment is P31,000 on a 5-year mortgage, find the total amount of interest.
(answer should be in whole # figure no peso sign no comma)
A: 660000
A couple wants to buy a house worth Php 1,270,00. They have saved 100k for the
equity downpayment and they can get a 7 1/2% , 30-yr mortgage. Based on their
proof of income they will only qualify for a loan as long as the monthly amortization
does not exceed P12K. Are they qualified for the loan? (ans yes or no only)
A: yes