Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY

DANAO CAMPUS
Sabang, Danao City Cebu,6004, Philippines
Website: http://www.ctu.edu.ph Email: coeddanao@ctu.edu.ph
Phone: +6332 354 3660 Local: 131/+63 917 317 0329

COLLEGE OF EDUCATION

MULTIPLE CHOICE: Read the question carefully and encircle the letter of the correct answer.

1. It is a kind of segment of the financial market is which financial instrument with high liquidity and
very short maturities and traded.
a. Money Market Investment b. Mutual Funds c. Bond d. Index Funds

2. It’s also known as fixed income, is an instrument used by governments and companies to raise
money by borrowing from inventors.
a. Mutual Funds b. Index Funds c. Bonds d. Mutual Funds

3. A managed fund that pools money from shareholders to invest securities.

a. Index funds b. Mutual funds c. Bonds d. Money Market

4. A type of mutual fund or exchanged-traded fund (ETF) with a portfolio constructed to match or
track the components of financial market index.
a. Index funds b. Bonds c. Mutual Funds d. Corporation Bond

5. The term is usually applied to longer-term debt instruments, with maturity of at least one year.
a. Corporate Bonds b. Municipal Bonds c. Junk Bonds d. Treasury Bonds

6. What is the advantage of Mutual Funds?

a. Can be subject to high management fees
b. No way of tailoring stock selection
c. Instantly diversities your portfolio
d. All of the above

7. It is a long-term fixed-interest instrument issued by the US Treasury Department, and forms part
of the range of government securities issued by the US national government.
a. Government Bond b. Treasury Bonds c. Municipal Bonds d. Index Bond

8. What is the disadvantage of Index Funds?

a. Can diversify a portfolio
b. High maintenance fees for some
c. Fewer fees than actively
d. Both a and b

9. It is a fixed- income debt security issued by a governmental entity to fund public projects, like
construction of roads or sewer systems.
a. Municipal Bonds b. Mutual funds c. Index Fund d. Junk Bond

10. This amount of money the bondholder receives when the bond matures.
a. Maturity Date b. Interest Rate c. Principal Bond d. Insurance Date

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