Financial Management Midterm Quiz #1

Financial management is only important for businesses, not individuals

• True
• False

The time value of money means P10 today is worth more than P10 in the future

• True
• False

Saving money in a bank account is a high-risk, high-return investment

• True
• False

A budget helps prioritize needs over wants

• True
• False

Investing in government bonds is an example of a high-risk investment

• True
• False

Cryptocurrency is a low-risk investment with guaranteed returns

• True
• False

The 40-30-20-10 rule allocates 30% of income to wants

• True
• False

ROI measures the profitability of an investment

• True
• False

A company’s IT budget only covers hardware costs

• True
• False

Data analytics tools can improve financial decision-making

• True
• False