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Business Finance Quiz 2 Quarter 1

Total questions: 15

Worksheet time: 54mins

Name
Class
Date
1.

The following are Personal Loan requirements for a banking institution EXCEPT

a)

photocopy of at least two pieces of identification (front and bank such as passport, a    driver’s license or a PRC ID

b)

A photo copy of the latest BIR Form 2326 or W2 signed by employer’s authorized representative

c)

Certificate of Business Registration with DTI

d)

Original certificate of employment and Income issued in the last three months that indicates status, length of service and compensation

2.

It is a customer’s ability to generate cash flow

a)

Character

b)

Capacity

c)

Capital

d)

Condition

3.

It is the lending of money to another party in exchange for repayment.

a)

Credit card

b)

Loan

c)

credit scoring

d)

Lender

4.

___________ is a periodic stream of equal cash flow at equal time intervals (annually, monthly, etc.)

a)

Single amount

b)

Mixed stream

c)

Annuity

d)

Annually

5.

Amanda deposited ₱10,500 in producers bank with an interest rate of 6% for 1 year. What is the future value of deposited?

a)

₱12, 186

b)

₱12,816

c)

₱11, 310

d)

₱11, 130

6.

____________ is a scenario when a single cash outflow is made and the total receipts will be at a single future date.

a)

Annuity

b)

Single Amount

c)

Annually

d)

Mixed stream

7.

What is the present value of a 5-year annuity of ₱6,000 if the discount rate is 3%?

a)

₱27,478.26

b)

₱27,748.26

c)

₱25,278.26

d)

none of the above

8.

This is a loan with schedules periodic payments that consists of both principal and interest

a)

amortized loan

b)

interest pay-out

c)

dept payment

d)

present value

9.

It is a percentage of the principal amount which represents the cost or fee for borrowing or lending money.

a)

interest rate    

b)

capital

c)

principal amount

d)

interest

10.

Vina borrowed money to her friend, Marie, worth ₱15,000 with an interest rate of 5% in a year. How much is the interest of the borrowed money?

a)

₱750

b)

₱105

c)

₱800

d)

₱350

11.

In a loan amortization, generally the principal portion of each payment ________ over the life loan.

a)

fluctuates

b)

increases

c)

decreases

d)

remains constant

12.

The _________________ is the concept that the level of return to be earned from an investment should be increase as the level of the risk increase.

a)

rate of return

b)

risk-return trade off

c)

trade-off

d)

risk return

13.

A monetary asset purchased with the idea that the asset will provide income in the future or will later be sold a higher price for a profit.

a)

Investor

b)

Financial Risk

c)

Business Risk

d)

Investment

14.

It is simply a measure of probabilities intended to show the likelihood that a given investment will generate a positive return, and what the likely return will be.

a)

Expected Risk 

b)

Business Risk

c)

Financial Risk

d)

Investment

15.

 It is a financial intermediary licensed to receive deposits and make loans and may also provide financial services such as wealth management, currency exchange, and safe boxes.

a)

Banking Financial Institution

b)

Non-Bank Financial Institution

c)

Long-term loan

d)

Short-term Loan