DEPARTMENT OF EDUCATION

Caraga Administrative Region

Division of Surigao del Sur
Matho Integrated School
Matho, Cortes, Surigao Del Sur

Summative test in Business Finance

2ND Quarter 2021-2022

Multiple Choices. Read the statement carefully. Select the letter of the correct answer.

1.These are money placed into a banking institution for safekeeping.

Bank Deposit b. Stocks c. Bonds d. mutual Funds

2. This type of security that signifies ownership in a corporation and classified under two main categories: Common
stock and Preferred Stock.
Bank Deposit b. Stocks c. Bonds d. mutual Funds

3. A debt investment where an investor loans money to an entity which borrows the funds for a defined period of
time at a variable or commonly, fixed interest rate.
Bank Deposit b. Stocks c. Bonds d. mutual Funds

4.These investments made up of a pool of funds collected from many investors for the purpose of investing in stocks,
bonds, and other similar assets.
Bank Deposit b. Stocks c. Bonds d. mutual Funds

5.Spending money, time or items toward future benefits for making more money is called____.
a. paying off b. investing c. borrowing d. saving

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

a. expense b. savings c. interest d. income

7. Agreement to receive cash, goods, or services now and pay for them later is ___________.
a. income b. credit c. savings d. investment

8. The term for the second-best choice or alternative a person gives up getting something else is _________ .
a. budget b. opportunity cost c. investment d. need

9. Each day after school, Kelly has volleyball. She could spend that time babysitting for extra cash. Babysitting is her
__________ .
a. budget b. opportunity cost c. investment d. short-term goal

10. All of these are forms of cash.

a. Checks, credit cards and coins b. Credit cards, checks and debit cards
c. Currency, checks and debit cards d. Currency, coins and credit cards

11. 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.

12. A store is offering 10% off for customers who use their store card. This is an example of making purchases using
_________ .
a. credit b. currency c. cash d. debit

13. Kurt Gabriel is in 5th grade. His dream is to be a lawyer one day. This is a _________ .
a. short-term goal b. long-term goal c. savings d. investment

14. 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 b. saving and borrowing
c. spending and saving d. investing and borrowing

15. It is a step which involves allocating a portion of one’s income for the future.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

16. A step which involves comparing prices of different vendors before making a purchase.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

17. It is a step which involves minimizing interest charge on debts.

a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

18. It is a step which involves avoiding late payment charge and high interest debts to build a positive credit
standing.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

19. Rex is planning to buy a cellphone case. Before buying she checked Lazada, Shopee, OLx and some stores and
bazaar. What step is Rex employing?
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

20. It is a step where percentage allocation depends on one’s personal finance philosophy and saving method.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

21. To avoid penalty charges, it is ideal to follow this step.

a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

22. Taking time in researching before making the purchase can save your money in the end.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

23. You will receive more credit card points if you are going to rely on this step.
a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

24. To avoid interest charges, you should do this step regularly.

a. Build savings. b. Pay more than the minimum payment.
c. Pay bills on time. d. Research for the best deal.

25. A risk management technique that combines a wide variety of investments within a portfolio to reduce risk.
a. standard deviation b. diversification
c. identify risk d. measure risk