BFIN2121 Business Finance WEEK 11-19 Wewo

BFIN2121 Business Finance
WEEK 11 – 13:
1st Attempt 9/10
The risk-return tradeoff is the principle that potential return rises with an increase in risk.
Answer: True
The time value of money is the idea that money available at the present time has the same
worth in the future due to its potential earning capacity.
Answer: False
Payments on insurances are called insurance _________.
Answer: Premiums
Time value of money deals with future value and present value.
Answer: True
This is a fee paid for using another party’s money.
Answer: Interest
Which of the following is not needed in solving for annuity
Answer: Principal
A return is the variability of returns from those that are expected.
Answer: False
This is an asset or item that is acquired with the expectation that it will generate interest,
income or appreciate its value in the future.
Answer: Investment
What is the amount of annuity of Php 1,555 payable at the end of every year for 2 years if
interest rate is 10%?
Answer: Php 3,265.50

Ben needs to have Php 20,000 after two years. Assuming that he will only deposit once, with
a 5% interest compounded annually, how much will you deposit today?
2nd Attempt 9/10

Which of the following is not needed in solving for compound interest
Answer: Periodic payment at the end of every period
Common stockholders are usually paid first and common stockholders are paid if there is
remaining distributable income.
Answer: False
Ken wants to have Php 100,000 after 5 years. If the bank pays 5% interest on deposits, how
much must he deposit today in order to have that amount in the future?
It is a contract in which an individual or entity receives financial protection or

reimbursement against losses from the insurer or the insurance company.
Answer: Insurance
This is a series of equal payments made at the end of consecutive periods over a fixed
length of time.
Answer: Annuity
This is the current worth of a future sum of money or stream of cash flows given a specified
rate of return
Answer: Present value
These are investment securities that enable investors to pool their money together into one
professionally managed investment.
Answer: Mutual funds
John made a bank deposit worth Php 10,500. With 2% interest compounded annually, how
much is the total interest after 2 years?
Answer: Php 424.20
Bonds are means of protection from financial loss.

Answer: False
What is the present value of annuity of Php 1,500 payable at the end of every year for 2
years, if money is worth 12%?
3rd Attempt 10/10
This is a mutual fund term commonly used to describe the combined holdings in one form.
Answer: Portfolio (CORRECT)
John made a bank deposit worth Php 30,555. With 5% interest compounded semi-
annually(2 times a year), how much will be the value of your money after 3 years?
Answer: Php 35,434.43 (CORRECT)
On the part of the borrower, this is the interest paid on the original amount, or principal,
borrowed.
Answer: Simple interest (CORRECT)
Shella made a bank deposit worth Php 21,550. With 5% annual interest, how much is the
total interest after 3 years?
Investing also makes your money work for you and is considered as a valuable financial
resource
Answer: True (CORRECT)
This is the interest paid (earned) on any previous interest, as well as on the principal
borrowed (lent).
Answer: Compound interest (CORRECT)
Which is not a component of return?
Answer: Principal (CORRECT)
This is a term usually used to describe properties such as lands and buildings.
Answer: Real eastate (CORRECT)
These are also known as a fixed-income security. These are debt instruments created for the
purpose of raising capital.
Answer: Bonds (CORRECT)
These term describes the people who receive allocated profits in form of dividends.
Answer: Stockholders (CORRECT)

4th Attempt 10/10
Hannah made a bank loan worth Php 200,550 with 5% interest compounded semi-annually
(2 times in a year). If she is to pay at the end of the period only, how much will be the value
of the loan after 2 years?
Generally, the higher the risk the higher the return can be.
Answer: True (CORRECT)
Properties bought is not considered as investments.
Answer: False (CORRECT)
This is the value of a current asset at a specified date in the future based on an assumed
rate of growth over time.
Answer: Future value (CORRECT)
Which of the following is not needed in solving for simple interest
Answer: Number of times the interest is compounded per year (CORRECT)
These are securities that signifies ownership in a corporation and represents a claim on part
of the corporation’s assets and earnings.
Answer: Stocks (CORRECT)
Risk is the income received on an investment plus any change in market price.
Answer: False (CORRECT)
The value of equipement decreases as time passes by because it is being used. With this
statement we can say that the equipment ________ in value.
Answer: Depreciate (CORRECT)
Jenny made a bank deposit worth Php 20,550 which will earn 5% annual interest. What is
the value of this money after 3 years?
Glen is depositing Php 5,500 at the end of every period for about 4 years. It has 10% interest
rate compounded annually. What is the total value of the money at the end of the 4 th year?

5th Attempt 8/10
These are investment securities that enable investors to pool their money together into one
professionally managed investment.
Bonds are means of protection from financial loss.
Answer: False
Risk is the income received on an investment plus any change in market price.
Answer: False
years, if money is worth 12%?
Answer: Php 3,265.50 (INCORRECT) Php 2,603.31
Properties bought is not considered as investments.
Answer: False
Glen is depositing Php 5,500 at the end of every period for about 4 years. It has 10% interest
rate compounded annually. What is the total value of the money at the end of the 4 th year?
Shella made a bank deposit worth Php 21,550. With 5% annual interest, how much is the
total interest after 3 years?
Answer: Php 3,232.50 (INCORRECT) Php 25,525.50
A return is the variability of returns from those that are expected.
Answer: False
Ben needs to have Php 20,000 after two years. Assuming that he will only deposit once, with
a 5% interest compounded annually, how much will you deposit today?
Hannah made a bank loan worth Php 200,550 with 5% interest compounded semi-annually
(2 times in a year). If she is to pay at the end of the period only, how much will be the value
of the loan after 2 years?

WEEK 14 – 15:
1st Attempt 18/20
Mr. Pan is working as a corporate accountant, he earns Php50,000 in a month. This
statement best describes
Answer: Earning
Ms Kelly had an emergency situation, she made a cash advance from her workplace worth
Php10,000. This statement best describes
Answer: Borrowing
Real estate schemes are sold as short-term loans to buyers, construction loans to
companies, or even as shares in a building that will earn income and pay it out to investors.
Scam artists offer high, guaranteed rates of return to investors seeking steady income from
a tangible asset like real estate.
Answer: True
Kiela went to the sarisari store and she bought food on account. This is to be paid when she
gets her salary net week.
Answer: Borrowing
Forex scams offer investors the opportunity to invest in foreign exchange, but in the end,
the money is lost to those running the scheme.
Answer: True
This is a scheme that attempts to boost the price of owned stock through false
recommendations, misleading or greatly exaggerated statements in order to sell the cheaply
purchased stock at a higher price.
Answer: Pump and dump
Garry gave Php100 for the BantayBata fund.
Answer: Donating
Scammers mislead investors by suggesting that big financially sound institutions participate
in their programs, when in fact such connections do not exist.
Answer: Prime bank

Anna bought food and drinks.
Answer: Spending
This type of scheme is extremely difficult for your local law enforcement agencies to
investigate because the individuals involved are foreign criminals.
Answer: Offshore investing scheme
This defines all financial decisions and activities of an individual or household, including
budgeting, insurance, mortgage planning, savings and retirement planning.
Answer: Personal finance
This scheme can survive simply by persuading most existing participants to reinvest their
money, with a relatively small number of new participants
Answer: Ponzi scheme
This is a type of pyramid scheme, this is where money from new investors is used to provide
a return to previous investors.
Answer: Boiler room scheme
Cherry paid the electricity and water bills. This statement best describes
Answer: Spending
This scheme cold call potential investors and pressure them to buy shares. Boiler room
operators often set up in a different jurisdiction or country than the people they target in
order to avoid detection by securities regulators and enforcement agencies.
Mr. Chen bought a land.

Answer: Investing
Ponzi scheme is a type of pyramid scheme, this is where money from new investors is used
to provide a return to previous investors.
Answer: True
Setting up a High-Yield Investment Program scheme is relatively cheap. Operators buy a

domain name, design a webpage, and publish it on the Internet. Once it’s live on the
Internet, the promoters are in business. Their next step is to attract investors from all over
the world.
Answer: True
John earns Php 2,000 in a week. He always see to it that he deposits Php500 every week in
his cooperative personal account. This amount is reserved for future economic activities.This
Answer: Saving
John contributes every month to the SSS for his retirement benefits.
Answer: Saving
2nd Attempt 19/20

John earns Php 2,000 in a week. He always see to it that he deposits Php500 every week in
his cooperative personal account. This amount is reserved for future economic activities.This
Answer: Saving
Mr. Chen bought a land.

Answer: Investing
Answer: Borrowing
This scheme can survive simply by persuading most existing participants to reinvest their
money, with a relatively small number of new participants
Answer: Ponzi scheme
Kiela went to the sarisari store and she bought food on account. This is to be paid when she
gets her salary net week.
Answer: Borrowing
Answer: Spending
This is a fraudulent investment scheme from illegitimate or non-existent organizations

outside your country.
Ponzi scheme is a type of pyramid scheme, this is where money from new investors is used
to provide a return to previous investors.
Answer: True
Setting up a High-Yield Investment Program scheme is relatively cheap. Operators buy a
domain name, design a webpage, and publish it on the Internet. Once it’s live on the
Internet, the promoters are in business. Their next step is to attract investors from all over
the world.
Answer: True
This offer investors the opportunity to invest in foreign exchange, but in the end, the money
is lost to those running the scheme.
Answer: Forex scams
Garry gave Php100 for the BantayBata fund.

Answer: Donating
Scammers mislead investors by suggesting that big financially sound institutions participate
in their programs, when in fact such connections do not exist.
Answer: Prime bank
Boiler rooms cold call potential investors and pressure them to buy shares. Boiler room
operators often set up in a different jurisdiction or country than the people they target in
order to avoid detection by securities regulators and enforcement agencies.
Answer: True
This type of scheme is extremely difficult for your local law enforcement agencies to
investigate because the individuals involved are foreign criminals.
This is a form of microcap stock fraud that involves artificially inflating the price of an owned
stock through false and misleading positive statements, in order to sell the cheaply
purchased stock at a higher price

Answer: Spending
Forex scams offer investors the opportunity to invest in foreign exchange, but in the end,
the money is lost to those running the scheme.
Answer: True
A person earns by recruiting people who would pay a registration fee without getting any
goods to in exchange of their payments. The recruited person also earns in the same
manner.
Answer: Pyramid scam
3rd Attempt 17/20
Ponzi scheme is a type of pyramid scheme, this is where money from new investors is used to
provide a return to previous investors.
Answer: True
This offer investors the opportunity to invest in foreign exchange, but in the end, the money is
lost to those running the scheme.
Answer: Forex scams

Answer: Spending
Answer: Spending
John earns Php 2,000 in a week. He always see to it that he deposits Php500 every week in his
cooperative personal account. This amount is reserved for future economic activities.This
Answer: Saving
Mr. Pan is working as a corporate accountant, he earns Php50,000 in a month. This statement
best describes
Answer: Earning
This is a fraudulent investment scheme from illegitimate or non-existent organizations outside

your country.
This is a form of microcap stock fraud that involves artificially inflating the price of an owned
stock through false and misleading positive statements, in order to sell the cheaply purchased
stock at a higher price
Answer: Borrowing
Scammers mislead investors by suggesting that big financially sound institutions participate in
their programs, when in fact such connections do not exist.
Answer: Prime bank
This scheme cold call potential investors and pressure them to buy shares. Boiler room
operators often set up in a different jurisdiction or country than the people they target in order
to avoid detection by securities regulators and enforcement agencies.
Forex scams offer investors the opportunity to invest in foreign exchange, but in the end, the
money is lost to those running the scheme.
Answer: True
Setting up a High-Yield Investment Program scheme is relatively cheap. Operators buy a domain
name, design a webpage, and publish it on the Internet. Once it’s live on the Internet, the
promoters are in business. Their next step is to attract investors from all over the world.
Answer: True
A person earns by recruiting people who would pay a registration fee without getting any goods
to in exchange of their payments. The recruited person also earns in the same manner.
Answer: Pyramid scam
This is a type of pyramid scheme, this is where money from new investors is used to provide a
return to previous investors.
Boiler rooms cold call potential investors and pressure them to buy shares. Boiler room
operators often set up in a different jurisdiction or country than the people they target in order
to avoid detection by securities regulators and enforcement agencies.
Answer: True
John contributes every month to the SSS for his retirement benefits.
Answer: Saving
Real estate schemes are sold as short-term loans to buyers, construction loans to companies, or
even as shares in a building that will earn income and pay it out to investors. Scam artists offer
high, guaranteed rates of return to investors seeking steady income from a tangible asset like
real estate.
Answer: True
WEEK 17:
1st Attempt 10/10
Which statement is correct?
Answer: Insurances can help you recover in case of losses
Jen decided to deposit her money in a cooperative savings ccount because it yield higher
interest than bank savings account. Which statement best depicts the situation?
Answer: Compare interest rates
Don’t expect that you will be earning interest if you did not deposit an amount in your bank
account.
Answer: True
Which is not a principle of personal finance?
Answer: Start saving an old age
Answer: Sell insurance to avoid being wiped out by a financial loss, such as an illness or
accident.
Jenny engages in time deposits in the bank. Which statement best depicts the situation?
Answer: Start saving at young age
John, a government employee, plans retire at the age on 55. Which statement best depicts
the situation?
Answer: Map your financial future
Savings is only possible if income is lower than expenses.
Answer: False

Answer: It is important know exactly what your goals are so you can create a plan designed
to achieve those objectives.

Answer: Stay assured
2nd Attempt 9/10
Mr. Ken disburses an extra amount for his SSS and Pag-IBIG contributions. Which statement
best depicts the situation?
Answer: Pay yourself first
Mr. John determines his monthly salary, overtime pays, taxes, SSS, Pag-IBIG and PhilHealth
contributions. Which statement best depicts the situation?
Answer: Know your take home pay
Don't take time to think about your financial goals, along with a realistic plan for achieving
them. It's just a waste of time.
Answer: False
Answer: Start saving an old age
Jen decided to deposit her money in a cooperative savings acccount because it yield higher
interest than bank savings account. Which statement best depicts the situation?
Answer: Compare interest rates
It is good to plan ahead on how to allocate your income for savings and expenses.
Answer: True
It is good to have negative credit record.
Answer: False
Answer: It is important know exactly what your goals are so you can create a plan designed
to achieve those objectives.
Answer: Stay assured
Don't expect that you will be earning interest if you did not deposit an amount in your bank
account.
Answer: True
3rd Attempt
It is good to have negative credit record.
Answer: False
Don't take time to think about your financial goals, along with a realistic plan for achieving
them. It's just a waste of time.
Answer: False
Savings is only possible if income is lower than expenses.
Answer: False
It is good to plan ahead on how to allocate your income for savings and expenses.
Answer: True
Answer: Sell insurance to avoid being wiped out by a financial loss, such as an illness or
accident.
Answer: Insurances can help you recover in case of losses
Jenny engages in time deposits in the bank. Which statement best depicts the situation?
Mr. Ken disburses an extra amount for his SSS and Pag-IBIG contributions. Which statement
best depicts the situation?
Answer: Pay yourself first
John, a government employee, plans retire at the age on 55. Which statement best depicts
the situation?
Answer: Map your financial future
Mr. John determines his monthly salary, overtime pays, taxes, SSS, Pag-IBIG and PhilHealth
contributions. Which statement best depicts the situation?
Answer: Know your take home pay

WEEK 19:
1st Attempt 20/20
In this type of investment, you can invest in stocks, bonds, cash or other assets
Jen made a bank deposit worth Php 15,000. With 2% annual interest, how much is the future
value of his deposit after 5 years?
Answer: Php 16,500
Which describes an intermediate term goal?
Answer: To buy a house after 3 years
Which describes a long-term term goal?
Answer: To graduate in college after 6 years
Answer: It is advisable to have insurance in high value economic activities
This is the principle that potential return rises with an increase in risk.
Answer: Risk-return tradeoff
This is a means of protection from financial loss
Answer: Insurance
Mr. John deposits a part of his salary to his cooperative account so that he will have funds
for future use. Which statement best depicts the situation?
Jen aims to buy a chocolate cake for her birthday so she saves every day. The statement
best describes
Answer: Consumable-product goals
You need to have Php 51,000 after 3 years. Assuming that you will only deposit once with a
5% annual interest, how much will you deposit today?
Answer: Php 44,348

years, if interest rate of money is worth 10%?
Answer: Php 4,755
Which type of investing vehicle does not involve an intermediary financial institution?
Answer: Real estate
Jen made a bank deposit worth Php 15,000. With 0.9% annual interest, how much is the
future value of his deposit after 5 years?
Answer: Php 15,675
What is the amount of annuity of Php 1,500 payable at the end of every year for 4 years if
interest rate is 10%?
Answer: Php 6,962
This is a type of investment which consists of money placed into a banking institution.
Answer: Bank deposits
Ranni love to watch a movies. He decided to buy a television set so that she can watch
movies every day. The statement best describes
Answer: Durable-product goals
This is a collection of investments from one or more categories
These are properties such as land and the buildings as well as the attached land
improvements and natural resources
Answer: Real estate
Ranni plans to watch a movie in the cinema this week-end. The statement best describes
Answer: Consumable-product goals
This is a type of security that signifies ownership in a corporation and represents a claim on
part of the corporation's assets and earnings.
Answer: Stocks

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BFIN2121 Business Finance

Payments on insurances are called insurance _________.

This is a fee paid for using another party’s money.

Which of the following is not needed in solving for annuity

A return is the variability of returns from those that are expected.

Answer: Php 3,265.50

Answer: Php 35,434.43

2nd Attempt 9/10

It is a contract in which an individual or entity receives financial protection or

Bonds are means of protection from financial loss.

Answer: Portfolio (CORRECT)

Answer: Php 35,434.43 (CORRECT)

Answer: Simple interest (CORRECT)

Answer: Php 3,232.50 (CORRECT)

Answer: True (CORRECT)

Answer: Compound interest (CORRECT)

Which is not a component of return?

Answer: Principal (CORRECT)

Answer: Real eastate (CORRECT)

Answer: Bonds (CORRECT)

Answer: Stockholders (CORRECT)

Answer: Php 221,369.68 (CORRECT)

Answer: True (CORRECT)

Properties bought is not considered as investments.

Answer: False (CORRECT)

Answer: Future value (CORRECT)

Which of the following is not needed in solving for simple interest

Answer: Number of times the interest is compounded per year (CORRECT)

Answer: Stocks (CORRECT)

Answer: False (CORRECT)

Answer: Depreciate (CORRECT)

Answer: Php 23,632.50 (CORRECT)

Answer: Php 25,525.50 (CORRECT)

Answer: Mutual funds

Bonds are means of protection from financial loss.

Answer: Php 3,265.50 (INCORRECT) Php 2,603.31

Properties bought is not considered as investments.

Answer: Php 25,525.50

Answer: Php 3,232.50 (INCORRECT) Php 25,525.50

A return is the variability of returns from those that are expected.

Answer: Php 35,434.43

Answer: Php 221,369.68

Answer: Pump and dump

Garry gave Php100 for the BantayBata fund.

Answer: Prime bank

Mr. Chen bought a land.

Setting up a High-Yield Investment Program scheme is relatively cheap. Operators buy a

2nd Attempt 19/20

Mr. Chen bought a land.

This is a fraudulent investment scheme from illegitimate or non-existent organizations

Garry gave Php100 for the BantayBata fund.

Anna bought food and drinks.

Anna bought food and drinks.

This is a fraudulent investment scheme from illegitimate or non-existent organizations outside

Answer: Offshore investing scheme

Answer: Personal finance

Answer: Insurances can help you recover in case of losses

Answer: Compare interest rates

Which is not a principle of personal finance?

Answer: Start saving an old age

Which is not a principle of personal finance?

Answer: Start saving at young age

Answer: Map your financial future

Savings is only possible if income is lower than expenses.