Understanding Finance Reviewers

Danny B., a business owner, saved Php 500,000.00 in his bank account over 5 years. He invested a portion of this money in a government bond with low risk but low return. What type of risk tolerance is shown?

• Conservative risk tolerance

• Moderate risk tolerance

• Aggressive risk tolerance

• Low risk tolerance

Which of the foll situationa shows portfolio management?

• Mr. Ali gets PHP 50,000.00 from bonus, php 10,000.00 from commission and php 5,000.00 from his salary

• - Mr. Benjie saves money in a coin bank. He owns 10 coin banks overall.

• - Ms. Rowena has 4 bank accounts; all are payroll accounts. She has been working four jobs to feed her family.

• - Ms. Ivee won Php 1,000,000.00 from lottery. She saved Php 500,000.00 in a savings account, put Php 300,000.00 in a time deposit and put up a store for Php 200,000.00.

Local prices of farm goods are negatively affected by high importation. Due to this, farmers have no choice but to accept the lowest market prices for their highly perishable products. What risk is involved in the situation?

• Market risk

• Inflation risk

• Credit risk

• Reinvestment risk

Insurance protection is not applicable to material belongings, but rather to one's life. This is to ensure that your assets are secured and your family's requirements are met during life's big milestones. What money management practice was demonstrated?

• Create emergency fund

• Plan and save for retirement

• Rewarding oneself

• Family consideration

The term fixed income refers to the interest payments that an investor receives are based on the solvency of the borrower and current interest rates. This type of investment offers higher interest based on how their maturities are.

• False

• True

It is the risk management strategy of combining a variety of assets to reduce the overall risk of an investment portfolio?

• - Determination of tolerance to different kinds of risks

• - Monitoring of investments

• - Conducting due diligence

• - Diversification of investment portfolio

Which among these statements is not true about UITF and Mutual Fund?

• - UITF aims to maximize net gains.

• - UITF is accessed through banks.

• - Mutual Fund is a pool of funds.

• Both can receive dividends

If the bond was not held until maturity and pre-terminated, investor can gain or lose depending on the prevailing interest rates at the time of pre-termination. If interest rates are higher, investor in bonds can lose in the pre-termination?

• True

• False

Which is considered an open-end professionally managed investment fund that pools money from many investors particularly to purchase securities?

• - UITF

• Mutual fund

• Bonds

• Bank deposit

Which of the following are examples of Alternatives to Fixed Income and Equities?

• - Mutual Funds & UITF

• - Stocks & Mutual funds

• - Bank Deposits & Stocks

• - Bank Deposits & Cryptocurrencies