BFIN SECOND QUARTER EXAM



"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. "

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?

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

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?

The correct answer is: Php 21,750

Which is not a basic principle of personal finance

The correct answer is: Expend everything you have because you have lots of money

Which is not a basic principle of personal finance

The correct answer is: Low returns means high risks

The fruit trees attached on a farm is considered as

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

The correct answer is: Insurance

Which is a SMART goal?

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%?

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.

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

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?

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. "

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. "

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?

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.

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?

The correct answer is: 12%

Ben is a senior high school student. Which of his goals is realistic?

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?

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?

The correct answer is: Php 71,428.57

Which is not included in SMART goal-setting guidelines

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.

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.

The correct answer is: Bond

Marry wants to buy 10 pcs of bond papers for her art class. The statement best describes

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

The correct answer is: Real estate

Which is not a principle of personal finance?

The correct answer is: Start saving an old age

Kelly has Php 100,000 in her savings account. Kelly invests in

The correct answer is: Bank deposits

This is a collection of investments from one or more categories.

The correct answer is: Mutual fun

Jen is a senior high school student. Which of her goals is realistic?

The correct answer is: To graduate with the distinction - cum laude

Which goal is action oriented?

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?

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"

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"

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?

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"

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.

The correct answer is: Durable-product goals

Which is not a principle of personal finance?

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

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."

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

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"

The correct answer is: Both Statements are False

How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent?

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?

The correct answer is: Php 14,851.80

This is a type of investment which consists of money placed into a banking institution.

The correct answer is: Bank deposit

Which is not a principle of personal finance?

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?

The correct answer is: Php 10,040

Which of the following is not needed in solving for annuity

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?

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

The correct answer is: Personal Finance