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BUSINESS FINANCE - Q2 REVIEW

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following is not a type of investment?

a)

Stocks

b)

Bonds

c)

Real Estate

d)

Credit Card

2.

Which investment is well-known for providing a steady source of income with a fixed maturity date?

a)

Bonds

b)

Mutual Funds

c)

Real Estate

d)

Stocks

3.

Which of the following investments do not earn interest?

a)

Savings Account

b)

Current Account

c)

Bonds

d)

Time Deposits

4.

Which type of investment is typically considered to be the riskiest?

a)

Land and Building

b)

Stocks

c)

Mutual Funds

d)

Deposits

5.

The person who manages a person’s mutual fund is called

a)

Bondholder

b)

Creditor

c)

Broker

d)

Stockholder

6.

Which of the following is a correct statement about the ownership rights of stocks and bonds?

a)

Stocks represent ownership in a company, while bonds represent debt.

b)

Bonds represent ownership in a company, while stocks represent debt.

c)

Stocks and bonds both represent ownership in a company with different levels of voting rights.

d)

Stocks and bonds both represent debt with different maturity dates and interest rates.

7.

Which of the following is a correct statement about the return on investment for stocks and bonds?

a)

Stocks typically offer higher potential returns but also higher risk compared to bonds.

b)

Stocks and bonds offer similar potential returns and risk profiles.

c)

The return on investment for stocks and bonds is primarily determined by the company's financial performance.

d)

Bonds typically offer higher potential returns but also higher risk compared to stocks.

8.

Which type of investment is often best suited for long-term investors?

a)

Stocks

b)

Real Estate

c)

Deposits

d)

Insurance

9.

Which type of investment is often best suited for short-term investors?

a)

Time Deposit

b)

Mutual Fund

c)

Savings Account

d)

Hard Assets

10.

What is the income earned on a stock?

a)

Stockholder

b)

Interest

c)

Premium

d)

Divided

11.

What is the strategy to earn short-term returns from stocks?

a)

Buy High Sell Low

b)

Buy High Sell High

c)

Buy Low Sell High

d)

Buy Low Sell Low

12.

Which of the following is not a type of investment?

a)

Stocks

b)

Bonds

c)

Real Estate

d)

Credit Card

13.

These are physical assets that are held as investments.

a)

Deposits

b)

Funds

c)

Stocks

d)

Hard Asset

14.

What is the primary purpose of a time deposit?

a)

To provide quick access to funds

b)

To maximize short-term investment returns

c)

To save money over a fixed period with a guaranteed interest rate

d)

To encourage frequent transactions

15.

How does the interest rate on a time deposit typically compare to a regular savings account?

a)

Time deposit interest rates are usually lower

b)

Time deposit interest rates are usually higher

c)

The interest rates are the same

d)

It depends on the bank