BUSINESS

FINANCE
I. Multiple choice: Please
choose the letter of the correct
answer and write it on your
paper.
1.It happens with the general rise in
the prices of goods and
commodities.

a. Inflation
b. Fluctuation
b. Economy
c. Derivation
2. The act of committing money or
capital to an endeavor with the
expectation of obtaining an
additional income or profit.

a. Bank c. Debt
b. Investing d. Saving
3. It happens when the business pays
out a portion of its earnings to its
stockholder
a. Cash dividend payment
b. Future Value of Money
c. Good Money Management
d. Opportunity Cost 
4. It happens when the current market price of
the investment in stock is higher than its
purchase price, making the investor money in
the process if he chooses to sell these stocks.

a. Capital Appreciation
b. Future Value of Money
c. Good Money Management
d. Opportunity Cost 
5. An important part of financial
planning

a.  Financial management

b. Financial Planning
c. Money management
d. managing
6. What is the process of budgeting, saving,
investing, spending or otherwise
overseeing the capital usage of an
individual or group.
a.  Financial management
b. Money management
c. Opportunity money
d. Saving money
7. What is the Portion of current income
not spent in consumption.

a. Savings
b. Purchasing Power
c. Inflation
d. Investing
8. You can map out where you want to
go, you must know where you stand.

a. Net vs. Gross

b. Net worth
c. Worth
d. Insurance
9. It is the change in price on an asset,
investment, or project over time, which may
be represented in terms of price change or
percentage change.

a. Accounts Receivables
b. Marketable Securities
c. Net Working Capital
d. Return
10. An investment principle that
indicates that the higher the risk, the
higher the potential reward.

a. Return
b. Risk
c. Risk-Return Tradeoff
d. Tradeoff
II. Identification: Choose
the correct answer inside
the box.
A. Choose the correct •
•
TRANSACTION MOTIVE
SPECULATIVE MOTIVE
answer inside the box. • PRECAUTIONARY MOTIVE
• SPENDING
• SAVING

11. It is your ability to produce a surplus and to make that surplus

grow.
12. People hold cash to deal with contingencies like
unemployment, health issues etc.
13. It is your ability to live frugally and spend wisely.
14. Is when people also hold cash to use it in the financial
market.
15. People save cash to bridge the interval between receiving the
income and expenditure.
B. Identify the following

16-23: What are the 8 steps to keep your

financial affairs in order.

24-30: What are the 7 steps to take to

manage your money properly.