Finance Unbox-ED ($) - Grade 3-5 - Session 031 - Assessment 10

Select all the statements that are true

• VC funds invest in early stage companies or start-ups
• PE funds invest in established companies
• Investors in VC and PE funds are in most cases individual investors
• VC and PE funds invest in over a dozen companies from each fund and hence there is some diversification

Select all the statements that are true

• VC and PE funds stay invested in companies for several years and hence is considered a long-term investment!
• Institutional investors can get their money back from VC and PE funds at short notice or whenever they like
• Investment in a VC fund has the same risk as investment in a PE fund
• VC funds in USA are on average around ten times the size of a PE fund

Select the statement that is true

• Charge a management fee every year on the fund
• Retain a certain portion of the profits on investments
• Both of the above
• None of the above

Select all the ways in which hedge funds are similar to VC and PE funds

• Raise funds from institutional investors
• Invest across multiple asset classes
• Charge both management and performance fees
• Make both short-term and long-term investments

Fintechs are companies that offer various types of financial services with the use of technology at their core

• True
• False

Fintechs have made our lives much easier as we can now do transactions or get information from anywhere in the world using the internet instead of having to go to a physical place

• True
• False

Fintechs help in providing financial services to people who do not have access to traditional forms of financial services

• True
• False

Select the statement that is true

• Techfins unlike fintechs are companies that started out in the technology space
• Techfins however are similar to fintechs in that the use of technology is at their core
• Both of the above
• None of the above

Select all the reasons why technology companies or techfins have been successful at offering financial services

• Techfins given their strong reputation have high customer trust
• Techfins alone have the capital needed to be successful
• Techfins alone have the technology needed to be successful
• Techfins already have a large customer base

One significant advantage that techfins have is that they offer financial services as part of their existing ecosystem which makes it convenient for users to adopt their services

• True
• False