BUS 101 (All)

WHAT IS FINANCE?

• The study of the way money is created & used in the economy

• The study of the way money is used & managed in the economy

• The study of the way capital is created & used in the economy

What is financial market?

• Any marketplace where the trading of physical assets occurs.

• A special marketplace where the trading of securities occurs

• A special marketplace where the trading of securities is limited

What is a form of equity financing?

• Bond

• Stock

• Fixed deposit

Which form of investment pays dividends as returns?

• Bond

• Stock

• Both bond and stock

What statement is NOT correct?

• Bank is financial intermediary

• Index fund is a pool of stocks

• Investment increases my wealth but not push the economic growth

Which statement is correct about Personal Finance?

• How government and public sector companies raise and spend money

• How companies make decisions about raising and investing money

• How individuals manage spending, saving and securing financial future

Company X will pay for your properties if they are damaged as long as you pay X a monthly fee. What is that product?

• Stock

• Credit

• Insurance

What is credit?

• Save money now and spend in the future

• Spend money now and pay back in the future

• Protect you from uncertainties

What is not a principle for Personal Finance?

• Disciplines

• Plan a ahead for retirement

• Diversify portfolios

• No saving

Which advice is correct for "Diversify portfolios"?

• Make a payday loan

• Don't put all eggs in one basket

• High risk high return