Department of Education

Region VI – Western Visayas

Schools Division of Guimaras
District of Buenavista I
BUENAVISTA NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
New Poblacion, Buenavista, Guimaras

Business Finance
2nd Long Quiz – Q2
(Topic: Investment)

Name of Learner: ____________________________________________ Score: __________________

Grade Level & Section: _________________________________________ Date: ___________________

Multiple Choice. Read each item carefully and WRITE THE LETTER of the correct answer IN CAPITAL
LETTERS on the space provided before each number. NO ERASURES ALLOWED. Use BLACK or BLUE
ball pen only.

Test I. True or False. On the space provided before each number, write T if the statement is True and F if
the statement is false.

1. Corporate bonds are long-term debt instruments issued by corporations.

__________ 2. A typical savings account provides a low fixed rate of return but provides the convenience of
availability.

_ 3. Treasury bills and bonds are issued by banks and corporations.

__________ 4. Investors would only need to look for a stockbroker in order for them to purchase or sell
shares in the stock market.

5. Insurance and bonds are both equity investments.

6. Stock is the riskiest of all assets.

7. Just like a time deposit, bonds can also be pre-terminated by the investor.

8. If you invest in mutual fund, it’s not necessary for you to pay management fees.

9. If you invest in Real Estate, maintenance is needed to preserve its value.

10. Every investment is associated with risk.

Test II. Write A if the statement or phrase is related to a, write B if the statement or phrase is related to b, write C
if the statement or phrase is related to both a and b, and write D if the statement or phrase is not related to both a
and b.

1. It is used to measure risk on investment.

a. volatility b. diversification

2. Risk management process

a. identification of risk b. solution implementation

_ 3. Liquidity risk
a. political and economic uncertainty b. choice of capital structure

_ 4. Hazard risk
a. Tsunami b. Theft
 _ 5. Strategic risk
a. Trade mark b. Franchise

_ 6. Risk transfer
a. Buying of insurance policy
b. Selling of equipment with salvage value of 50,000.

_ 7. Risk control
a. Installation of CCTV to the whole working area
b. Installation of Biometric machine

_ 8. Standard deviation
a. systematic investment b. non-systematic investment

9. A risk management technique that combines a wide variety of investments within a portfolio to
reduce risk.
a. standard deviation b. diversification

10. A risk management step which determine changes and updates are required
a. identify risk b. measure risk

Business Finance
4th Long Quiz – Q2
(Topic: Money Management)

Name of Learner: ____________________________________________ Score: __________________

Grade Level & Section: _________________________________________ Date: ___________________

Multiple Choice. Read each item carefully and WRITE THE LETTER of the correct answer IN CAPITAL
LETTERS on the space provided before each number. NO ERASURES ALLOWED. Use BLACK or BLUE
ball pen only.

1. Which of the following will help you the LEAST in managing your money?

A. pay your rent/mortgage payment and utility bills on time.

B. plan ahead for large expenses, shop with a list, and resist impulse buying.
C. set goals and keep a budget for your net income.
D. get advice from your friends.

2. Money management helps individuals to:

A. guarantee future income.

B. achieve all goals by set target dates.
C. have strategies for saving and investing.
D. eliminate risk on investments.

3. An important consideration when saving money for emergencies is:

A. high growth potential.

B. diversification.
C. high degree of safety and liquidity.
D. return on investment.
4. Which of the following is necessary for successful budgeting?

A. A copy of credit card report.

B. The location of your banks.
C. The ability to adjust spending to money available.
D. A list of unexpected income.

5. I find myself using my credit card to cover the cost of food or rent because I’m regularly short on
cash at the end of each month. The best thing to do is:

A. ignore it. Things are bound to get better.

B. make a budget and consider ways to reduce expenses or increase income.
C. borrow money from a relative.
D. apply for additional credit cards.

6. Spending money, time or items toward future benefits for making more money is called
.
A. paying off B. investing C. borrowing D. saving

7. It is the term for the money that you earn.

A. expense B. savings C. interest D. income

8. Agreement to receive cash, goods, or services now and pay for them later is
.
A. income C. credit
B. savings D. investment

9. The term for the second-best choice or alternative a person gives up getting something else is .
A. budget C. opportunity cost
B. investment D. need

10. Each day after school, Kelly has volleyball. She could spend that time babysitting for extra cash.
Babysitting is her
.
A. budget C. opportunity cost
B. investment D. short-term goal

11. All of these are forms of cash.

A. Checks, credit cards and coins C. Currency, checks and debit cards
B. Credit cards, checks and debit cards D. Currency, coins and credit cards

12. Who is most likely to have high finance charges?

A. An individual who pays on time.

B. A person with a bad credit history and a lot of debt.
C. A person who pays off credit card balances each month.
D. A customer who pays bills online.

13. A store is offering 10% off for customers who pay upfront. This is an example of making purchases
using
.
A. credit B. currency C. cash D. debit

14. Kurt Gabriel is in 5th grade. His dream is to be a lawyer one day. This is a
.
 A. short-term goal C. long-term goal
B. savings D. investment

15. John Paul started a college fund for his daughter when she was born. Each month he transfers P5,000 from
his checking account to the fund. By doing this, he is both and
.
A. saving and investing C. saving and borrowing
B. spending and saving D. investing and borrowing

-oOo-

Prepared by:

JOEVE GRACE G.
NATIVIDAD
Subject Teacher

_______________________________
Parent’s Signature over Printed Name