BFIN Second Quarter Exam
AMA OED ANSWERPersonal Finance Principles
Statement II. Setting and achieving short-term goals is the basis for achieving long-term goals.
Which is not a basic principle of personal finance
Which is not a basic principle of personal finance
Which is not a principle of personal finance?
Which is not a principle of personal finance?
Which is not a principle of personal finance?
Statement II. Two factors commonly influence your financial aspirations for the future. The first is the time frame in which you would like to achieve your goals. The second is the type of financial need that drives your goals.
This is the management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments
Investments
Jenny decided to buy a lot to be used in the future for her planned business. She invested in
The fruit trees attached on a farm is considered as
John has a highly dangerous job. He pays premiums every month by depositing the money to the bank account of the engaged company. He does this so that he will have remuneration in case he will be suffering from an accident. John is investing on
Scammers mislead investors by suggesting that big financially sound institutions participate in their programs, when in fact such connections do not exist.
This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings
Statement II. A bond is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
This is a form of fraudulent investment operation where the individual or organization operator pays returns to its investors from new capital paid to the operators by new investors recruited.
This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Jennie, the owner of Hawaii Resort used her money to put up an additional cottage. Jennie invested in
Kelly has Php 100,000 in her savings account. Kelly invests in
This is a collection of investments from one or more categories.
Marrie pays monthly premiums to a company with the agreement that Marrie will be imdemnified in case her house gets damaged because of a natural disaster or it gets burned due to an unwanted accident. This is a type of
This is a type of investment which consists of money placed into a banking institution.
Annuities
Armi deposits Php 4,500 at the beginning of each month (12 times a year) in a fund that serves at 24% compounded monthly. How much is the fund at the end of 3 years?
Jen made a bank deposit worth Php 15,000. With 9% annual interest, how much is the future value of his deposit after 5 years?
What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if interest rate is 10%?
You need to have Php 51,000 after 3 years. Assuming that you will only deposit once with a 5% annual interest, how much will you deposit today?
What will a deposit of Php 4,500 at 10% compounded semiannually be worth if left in the bank for six years?
What annual interest rate would you need in order to have an ordinary annuity of Php7,500 per year accumulate to Php 279,600 in 15 years?
You need to have Php 100,000 after 4 years. Assuming that you will only deposit once with a 10% annual interest, how much will you deposit today?
If you require a 9 percent annual return on your investments, you would prefer Php15,000 five years from today rather than an ordinary annuity of Php 1,000 per year for 15 years.
How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 6 percent?
How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent?
What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10 years?
Jen made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his deposit after 5 years?
John made a bank deposit worth Php 10,000. With 0.1% annual interest, how much is the future value of his deposit after 4 years?
What will a deposit of Php 4,500 at 7% compounded annual interest be worth if left in the bank for nine years?
Which of the following is not needed in solving for annuity
Statement II. Fixed capital are funds used for its day-to-day operations
SMART Goals
Which is a SMART goal?
Ben is a senior high school student. Which of his goals is realistic?
A senior high school student deposits a part of his salary to his bank account so that he will have funds for future use. Which statement best depicts the situation?
Which is not included in SMART goal-setting guidelines
Marry wants to buy 10 pcs of bond papers for her art class. The statement best describes
Jen is a senior high school student. Which of her goals is realistic?
Which goal is action oriented?
Garry plans to buy a calculator to aid him in his math class. The statement best describes
Statement II. A SMART financial goal must be timely
Statement II. intermediate goals involve financial plans that are more than five years off, such as retirement, money for children's college education, or the purchase of a vacation home
Financial Concepts
Statement II. The time value of money is the idea that money available at the present time has the same worth in the future due to its potential earning capacity
These product goals usually involve infrequently purchased, expensive items such as appliances, cars, and sporting equipment; these consist of tangible items.
Statement II. Time value of money deals with future value and present value.
Frequently Asked Questions
What are the core principles of personal finance?
Core personal finance principles include budgeting, saving early, investing wisely, managing debt responsibly, and planning for long-term goals like retirement. Avoid overspending or borrowing beyond repayment capacity.
How do stocks differ from bonds?
Stocks signify ownership in a company, offering dividends and potential capital gains with higher risk. Bonds are loans to issuers, providing regular interest with lower risk, ideal for stable income.
What makes a financial goal SMART?
A SMART financial goal is Specific, Measurable, Achievable, Relevant, and Time-bound, such as saving Php2,000 in two months for a bag by allocating daily allowance portions.
How do annuities function in financial planning?
Annuities are regular payments or receipts, like monthly savings or pensions, used to calculate present or future values. Ordinary annuities pay at period ends, while annuities due pay at beginnings.
What are the main types of investments?
Main investments include bank deposits, real estate, stocks, bonds, mutual funds, and insurance, each balancing risk and return to suit short-term or long-term financial objectives.
How can I protect myself from investment scams?
Protect against scams like Ponzi schemes by researching investments, verifying institutional claims, and avoiding offers promising high returns with minimal risk. Consult trusted financial advisors.