LONG QUIZ #1

BUSFIN
A. Directions: Identify the terms being described by the statements. Choose your
answer on the pool of words below the statements. Write your answers on a separate
sheet of paper.(NO ERASURE)
1. It is a type of investment that implies ownership in a corporation and
represents a claim on part of the corporation’s assets and earnings.
2. This type of investment requires the depositor to placed money into a
chosen banking institution for safekeeping and thus earns interest over
time.
3. This investment fall under the category of debt investments where the
investor lends money to the borrower of funds for a defined period that has
a fixed interest rate.
4. It gives small investors an opportunity to professionally managed,
diversified portfolios of equities, bonds and other securities coming from
funds that are collected from many investors.
5. This investment appreciates over time due to the fact that land gets
insufficient over time.
6. This investment provides the insured entity the cash to deal with the
unforeseen adverse financial consequences coming from the premiums
paid and interest earned over time.
7. In this investment, a purchase of basic goods that are used in commerce
which can be interchanged with other commodities of the same type.
8. This investment is similar to a mutual fund but is managed by banks.
9. This investment is considered the riskiest of all assets more than 50% can
loss even money in one day.
10. It is an investment that gives lower interest income over bonds.
11. It is like buying a small part of a company.
12. It is a managed fund by which money is used to buy number of shares
and other investments.
13. This investment focuses on buying tangible property that can be
converted into shopping malls, apartment buildings or anything that
would make it valuable.
14. An investment on generally accepted form of money, including coins and
paper notes, which is issued by a government and circulated within an
economy like USD, JPY and the likes.
15. This investment can be a source of recurring rental income.

B. Enumerate the following

a. Fixed income and equities.
b. Alternative to fixed income and equities.
c. Other investment assets.
C. Explain the following at least 2 to 3 sentences.(3points each)
a.Diversification
b. Inflation
c. Geopolitical risk
d. VUL
e. Hedge