Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VI- Western Visayas
Division of San Carlos City
San Carlos City, Negros Occidental

Julio Ledesma National High School

SENIOR HIGH SCHOOL
GENERAL MATHEMATICS

ASSESSMENT 3
I. Multiple Choice b. buying similar stocks and bonds in the same
Choose the letter of the best answer. Write the chosen industries.
letter on a separate sheet of paper. c. buying similar stocks and bonds in different
1. It is the money that is earned in trade or business industries.
after paying the costs of producing and selling goods d. buying different stocks and bonds in the same
and services. industries.
a. stock c. bond 10. Several years ago, Company A issued bonds to raise
b. profit d. investment funds so that it could buy equipment. Those bonds were
2. What is the other name for a bond's interest rate? purchased by the Bank of the East. However, now the
a. par value c. coupon rare Bank of the East has decided that it doesn’t want to have
b. face value d. principal any assets in the form of bonds, so it is selling off all the
3. What is a bond’s coupon? bonds that it owns. Which of the following is most likely
a. the purchase price of a bond to be the result of this action?
b. the interest earned to be paid by the bond issuer a. The default risk of the bonds will increase.
c. the value of a bond at its issue date b. Bond prices will increase.
d. the value of a bond at its maturity date c. The face value of the bonds will decrease.
4. Which is the LEAST risky investment? d. Interest rates will increase.
a. stocks c. Philippines treasury bonds 11. What do you call an asset used to secure the loan
b. corporate bond d. mutual funds that may be real estate or other investments?
5. When people buy stock on a stock market… a. business loan c. consumer loan
a. the people selling the stock receives the money. b. collateral d. mortgage
b. the corporation loses money. 12. Which of the following is money lent to an individual
c. the corporation receives the money. for personal or family purposes?
d. the people buying the stock receives the money. a. business loan c. consumer loan
6. Which of the following best defines liquidity? b. collateral d. mortgage
a. Investing in several different assets with unrelated 13. Which of the following is not an example of a
risks. business loan?
b. The expenses of negotiating and executing an a. cash flow loans c. invoice financing
exchange. b. credit cards d. micro loans
c. The ability to convert a store of value to cash. 14. Which of the following statement/s about the
d. The amount that will be repaid at the end of a bond’s interest rate of consumer and business loans are
term. correct?
7. What is stock portfolio? a. The business loan has higher interest than a consumer
a. the online tool used to track stock prices. loan.
b. a list of all the stocks you own. b. Consumer loan has a higher interest rate than a
c. the document that you receive for purchasing stock. business loan.
d. a group of stocks that you can purchase at one time c. Consumer and business loans are always equal in
on a stock exchange. interest rates.
8. What is the best explanation of a bond? d. The business loan has no interest rate, unlike
a. It is an ownership interest in a company. consumer loan.
b. It is an equity or share in a company. 15. Which of the following is not a required document if
c. It represents a corporate or government debt an employee is applying for a consumer loan?
obligation. a. certificate of employment c. credit report
d. It is a debt instrument. b. company’s financial statement d. employee’s pay slip
9. Diversifying can occur by
a. buying different stocks and bonds in different
industries.
II. Matching Type
Match each term in column B with its appropriate
definition in column A. Write the letter of the correct
answer.
A
16. A money lent specifically for a business purpose.
17. A loan that is secured by collateral.
18. Assets used to secure the loan.
19. A financial transaction in which someone pays for
the use of someone else’s money.
20. Money lent for personal of family purposes.

B
a. Collateral
b. Loan
c. Business Loan
d. Consumer Loan
e. Mortgage