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Financial Instrument Quiz

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

In the context of investing, what is meant by the term 'risk'?

a)

The chance of making money

b)

The chance of losing money

c)

The time taken to invest

d)

The amount of money invested

2.

Which type of investment typically offers minimal risk and consistent returns?

a)

Stocks

b)

Cryptocurrencies

c)

Real estate

d)

Savings accounts

3.

What kind of investment is generally characterized by low risk and steady returns?

a)

Investing in fixed deposits

b)

Investing in undervalued stocks

c)

Investing in stocks with high dividends

d)

Investing in stocks expected to grow rapidly

4.

In what way can active investing be distinguished from other investment strategies?

a)

Investing in index funds

b)

Hands-on strategy with frequent trading

c)

Minimal trading

d)

Long-term holding of stocks

5.

Which of the following is a focus of dividend investing?Which aspect of investing does dividend investing prioritize most?

a)

Stocks that pay regular dividends

b)

Stocks with high growth potential

c)

Bonds with fixed interest

d)

Cryptocurrencies

6.

How does the Sharpe Ratio assess the risk-adjusted return of an investment?

a)

Risk-adjusted returns

b)

Dividend yield

c)

Market volatility

d)

Profitability

7.

What is the core concept of value investing?

a)

Invest in government bonds

b)

Focus on stocks with high dividends

c)

Buy undervalued stocks and wait for price increase

d)

Invest in high-performing stocks

8.

What defines passive investing as a strategy?

a)

Research-intensive stock selection

b)

Frequent buying and selling of stocks

c)

Investing in individual stocks

d)

A buy and hold approach

9.

What role do key metrics play in evaluating portfolio performance?

a)

To increase trading frequency

b)

To minimize investment diversity

c)

To ensure continued growth and risk management

d)

To focus solely on short-term gains

10.

What is the key focus for attaining financial stability?

a)

High-risk investments

b)

Short-term gains

c)

Long-term consistency

d)

Frequent trading

11.

What financial strategy is being used when a Filipino investor diversifies their funds across stocks, government bonds, and real estate to reduce risk?

a)

Liquidity Management

b)

Risk Diversification

c)

Financial Stability

d)

Maximizing Returns

12.

What investment strategy is a retired police using by investing in dividend-paying stocks like PLDT and Meralco for passive income while keeping some funds in time deposits for safety?

a)

Liquidity Management

b)

Financial Stability

c)

Risk Diversification

d)

Aligning with Goals

13.

How is a small business owner in Manila using high-yield savings accounts and mutual funds to balance risk and growth in their investment strategy?

a)

Liquidity Management

b)

Aligning with Goals

c)

Risk Diversification

d)

Maximizing Returns

14.

What financial strategy is a young professional in Manila using by keeping emergency funds in digital wallets like GCash or Maya, while also investing in short-term Pag-IBIG MP2 savings?

a)

Liquidity Management

b)

Financial Stability

c)

Maximizing Returns

d)

Risk Diversification

15.

What is a short-term government-backed investment that matures in 91, 182, or 364 days?

a)

Forward Contract

b)

OFW Remittances

c)

T-Bills

d)

None of the Choices

16.

A Philippine electronics importer locks in an exchange rate with a bank to hedge against currency fluctuations. What financial instrument is this?

a)

T-Bills

b)

Forward Contract

c)

OFW Remittances

d)

None of the Choices

17.
  • Which financial activity benefits from a higher USD to PHP exchange rate?

a)

T-Bills

b)

Forward Contract

c)

OFW Remittances

d)

None of the Choices

18.

The phrase "Putting an egg in one basket" refers to which financial concept?

a)

Stocks

b)

Bonds

c)

Diversification

d)

Risk

19.

A financial instrument portfolio is a (a)   of various financial assets, such as stocks, bonds, mutual funds, and other investment securities, held by an individual or an organization to generate returns and manage risk. Choose the best word below to complete the sentence.

20.

Which of the following represents Common Stocks

a)

Jollibee

b)

Nestle

c)

Gaisano Mall

d)

Ororama