Question: Directions: Select the best answer and write on the space provided before the number. 1. It is a security that represents the ownership of a

Directions: Select the best answer and write onDirections: Select the best answer and write onDirections: Select the best answer and write on
Directions: Select the best answer and write on the space provided before the number. 1. It is a security that represents the ownership of a fraction of a corporation. a. shares c. coupon b. stock d. bond 2. Which of the following statements is false? I. Investment for Influence Il. Investment for Return Ill. Cyclical cash wants IV.Investment to Control a. Only I and II are true c. Only III and IV are false b. Only II and Ill are false d. All statements are false 3. It is saving account that gives a higher rate of interest. a. Savings deposit c. Checking deposit b. Trust deposit d. Time deposit 4. Which of the following statement is true? I. Investment is the amount of money invested in financial assets like bonds, stocks, mutual funds, or insurance policies based on the accounting meaning. Il. Investment refers to tangible or physical assets like buildings, pieces of machineries, or equipment that contribute income to the business or individual based on finance meaning. Ill. Investment refers to assets held by the business for the accretion of wealth through distribution based in finance. a. Only I and II are true c. Only I and Ill are true b. Only II and Ill are true d. None of the above5. The public or anybody will lend money for a number of years with an agreement that will be paid fixed interest rate - called a a. Stock c. Shares b. Coupon d. Bond 6. It is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instrument and other assets. a. Shares of stock b. Bonds c. Pooling of interest d. Mutual Fund 7. Which is true of money market mutual funds? a. Enable individuals and small businesses to invest indirectly in money market instruments b. Are available only to high-worth individual. c. Are involved in acquiring and placing mortgages. d. Are also known as finance companies. 8. Of the following four investment, which is considered the safest? a. Commercial paper c. Treasury bonds b. Corporate bonds d. Treasury bills 9. In Mutual fund, a will watch the investment on a daily basis and make strategic moves to help achieve thefund's objectives on behalf of the investor. a. Fund Officer c. Bank Manager b. Fund Investor d. Fund manager 10. It guarantees the bank deposits insured for a maximum amount of P 500,000.00. a. Bangko Sentral ng Pilipinas b. Philippine Deposit Insrance Corporation c. Philippine Deposit Insurance Corporation d. Philipine Deposit Insurance Corporation Test II (Week 2) Directions: Write T if it is True and write W if it is Wrong. 1. In investment, the higher the return, the higher will be the risk. 2. The risk of management strategy of combining a variety of assets to reduce the overall risk of an investment portfolio is allocation of asset. 3. Mara invested 25% of on her shares of stocks and 75%. The shares of stock got higher and 75% of her investment of her was lost. 4. The decrease in the stability of the portfolio considers that different assets market price can rise and fall at different time intervals. 5. The risks of a portfolio is measured by the use of a standard deviation. 6. Treasury bonds are fully backed up by the government 7. The age, investment period and investment temperament are the factors to considers in proper allocation of investment. 8. The level of risk involves in every investment. 9. The investment's history, earnings, growth, management team and debt load information can be compared with other dissimilar investment products as well as to other assets in the investment portfolio. 10. ACB Company assess its holding in different company, 20% for common stocks in Z company, 30% for short-term bonds in W company, 30% preferred shares in H Corporation and 20% international stocks. It is an example of disinvestment monitoring

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