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WorksheetsFinancial Instrument Quiz
Total questions: 20
Worksheet time: 20mins
In the context of investing, what is meant by the term 'risk'?
The chance of making money
The chance of losing money
The time taken to invest
The amount of money invested
Which type of investment typically offers minimal risk and consistent returns?
Stocks
Cryptocurrencies
Real estate
Savings accounts
What kind of investment is generally characterized by low risk and steady returns?
Investing in fixed deposits
Investing in undervalued stocks
Investing in stocks with high dividends
Investing in stocks expected to grow rapidly
In what way can active investing be distinguished from other investment strategies?
Investing in index funds
Hands-on strategy with frequent trading
Minimal trading
Long-term holding of stocks
Which of the following is a focus of dividend investing?Which aspect of investing does dividend investing prioritize most?
Stocks that pay regular dividends
Stocks with high growth potential
Bonds with fixed interest
Cryptocurrencies
How does the Sharpe Ratio assess the risk-adjusted return of an investment?
Risk-adjusted returns
Dividend yield
Market volatility
Profitability
What is the core concept of value investing?
Invest in government bonds
Focus on stocks with high dividends
Buy undervalued stocks and wait for price increase
Invest in high-performing stocks
What defines passive investing as a strategy?
Research-intensive stock selection
Frequent buying and selling of stocks
Investing in individual stocks
A buy and hold approach
What role do key metrics play in evaluating portfolio performance?
To increase trading frequency
To minimize investment diversity
To ensure continued growth and risk management
To focus solely on short-term gains
What is the key focus for attaining financial stability?
High-risk investments
Short-term gains
Long-term consistency
Frequent trading
What financial strategy is being used when a Filipino investor diversifies their funds across stocks, government bonds, and real estate to reduce risk?
Liquidity Management
Risk Diversification
Financial Stability
Maximizing Returns
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?
Liquidity Management
Financial Stability
Risk Diversification
Aligning with Goals
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?
Liquidity Management
Aligning with Goals
Risk Diversification
Maximizing Returns
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?
Liquidity Management
Financial Stability
Maximizing Returns
Risk Diversification
What is a short-term government-backed investment that matures in 91, 182, or 364 days?
Forward Contract
OFW Remittances
T-Bills
None of the Choices
A Philippine electronics importer locks in an exchange rate with a bank to hedge against currency fluctuations. What financial instrument is this?
T-Bills
Forward Contract
OFW Remittances
None of the Choices
Which financial activity benefits from a higher USD to PHP exchange rate?
T-Bills
Forward Contract
OFW Remittances
None of the Choices
The phrase "Putting an egg in one basket" refers to which financial concept?
Stocks
Bonds
Diversification
Risk
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.
Which of the following represents Common Stocks
Jollibee
Nestle
Gaisano Mall
Ororama
