DPA10203 Topic 4 and Topic 5

Why is it important to increase personal net worth?

• a) To increase financial stability

• 
  b) To reduce spending power
  

• c) To increase debt

• d) To limit financial growth

Which of the following is the first step in setting a personal investment goal?

• a) Identifying risk tolerance

• b) Borrowing money to invest

• c) Spending all available cash

• d) Avoiding financial planning

Investment risk and return are closely related. What does this mean for an investor?

• a) Higher risk always guarantees higher return

• b) Lower risk investments generally provide lower returns

• c) All investments have the same level of risk and return

• d) Investing is always risk-free

Which of the following is NOT a basic investment product available in Malaysia?

• a) Unit Trust Funds

• b) Fixed Deposit

• c) Cryptocurrency issued by Bank Negara

• d) Real Estate Investment Trust (REIT)

Why is investment diversification important?

• a) It ensures high profits with no losses

• b) It helps spread investment risks across different assets

• c) It guarantees a fixed return every year

• d) It prevents investors from making any losses

Which of the following investment products is considered a fixed-interest investment?

• a) Shares

• b) Property

• c) Fixed deposits

• d) Unit trust funds

What is the main difference between unit trust funds and shares?

• a) Unit trust funds are riskier than shares

• b) Shares are managed by professional fund managers

• c) Investors buy shares in individual companies, while unit trust funds pool money from multiple investors

• d) Shares are safer than unit trust funds

Which of the following is a common type of financial scam?

• a) Ponzi scheme

• b) Fixed deposit savings

• c) Unit trust investment

• d) Real estate investment

What is a key warning sign of a financial scam?

• a) Guaranteed high returns with little or no risk

• b) Investment regulated by Bank Negara Malaysia

• c) Properly documented investment plan

• d) Registered with the Securities Commission Malaysia

What should an investor do to avoid being a victim of financial scams?

• a) Invest without verifying the source

• b) Only rely on information from social media advertisements

• c) Verify investment opportunities with official financial authorities

• d) Join investment schemes that offer quick returns