1.What are the advantages of having a credit card ?

a)It takes all the worry out of buying things, because you know the money will be there when you need it

b)You don't have to carry cash or wonder whether someone will accept your check.

c)It doesn't cost anything to use it

d)All of the above

2.The following are reasons why financial planning is important, which is not ?

a)Family security

b)Helps choose the right types of investment to fit your needs

c)Allows you to be known in the community

d)Helps build assets that don't become a burden in the future

3.This is the income generated by your earning asset and investment

a)Active incomec)Additional income

b)Primary incomed)Passive income

4.The difference between the wholesale price and retail price is called

a)Marketingc)Share

b)Mark-upd)Risk

5.How much will be the amount accumulated at the bank if Ms. LOBOSdeposit in the bank P100,000 every year for 3 years at 10% interest per year. The deposit is made at the start of the first year ?

a)P 330,000c)P 364,100

b)P 354,300d)P 1,392,300

6.The following are passive income, which is not ?

a)Interest income on bank deposit with BPI.

b)Royalty income from sale of published books.

c)Dividend income from ABS-CBN, a domestic corporation

d)Income from practice of profession.

7.What is the future value of P100,000 made at the end of each year for 3 years at a bank with a stated interest rate of 10% per year ?

a)P 330,000c)P 364,100

b)P 331,000d)P 354,100

8.The following are rights of common stockholders, which is not ?

a)Right to vote

b)Preemptive right

c)Right to share in the profits of the corporation

d)Right to be controlled by management

9.They are called residual owners of the corporation

a)Ordinary stockholdersc)Treasury stockholders

b)Preference shareholdersd)None of the choices

10.The best measure of a person's or family's net wealth is

a)The highest level of education received

b)The amount of annual income

c)The value of what they own minus the value of what they owe

d)Their tax bracket

11.To increase your savings

a)Income must be increasedc)Income must be decreased

b)Expenses must be increasedd)Net worth must be decreased

12.The following are examples of employee benefits, which is not ?

a)Overtime payc)Hazard pay

b)Vacation and sick leaved)Honorarium pay

13.Which of the following is expected to be the result of assessing and evaluating your assets ?

a)Your ability to meet non-current liabilities when they fall due

b)Your ability to meet current liabilities when they fall due

c)Your capacity to generate revenue

d)Your business performance

14.This is when you now have income from savings and investments, which contribute at least 20% of your total income

a)Start up stagec)Asset allocation stage

b)Build up staged)Retirement stage

15.All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc

a)Mutual fundc)Trade school

b)Personal financed)Out-of-pocket expense

16.To buy an item with credit; paying over time is called

a)Brandingc)Portfolio

b)Financingd)Loan

17.Financial life stage where 100% of income is sourced from other sources other than salary from an employer-employee relationship.

a)Start-up stagec)Asset allocation stage

b)Build-up staged)Retirement stage

18.The following are obstacles to financial freedom, which is not ?

a)Impulse buying

b)Unreasonable demands from parents and friends

c)Poor spending habit

d)Lack of financial viability

e)None of the above

19.The following are ways to invest your savings, which is not ?

a)In the bankc)Pension plan

b)On real estated)None of the above

20.The following are classifications of mutual funds, which is not ?

a)Equity fundc)Stock fund

b)Balanced fundd)Bond fund

21.This is your income from your investments

a)Active incomec)Additional income

b)Primary incomed)Passive income

22.Overtime work is an extra time spent working after regular time schedule. On ordinary days, the extra premium on overtime work is

a)10%c)30%

b)25%d)50%

23.Which of the following is expected to be the result of assessing and evaluating your assets ?

a)Your ability to meet current liabilities when they fall due

b)Your ability to meet non-current liabilities when they fall due

c)Your capacity to generate revenue

d)Your business performance

24.Overtime work is an extra time spent working after regular time schedule. On rest days or holidays, the extra premium on overtime work is

a)10%c)30%

b)25%d)50%

25.Firms invest their cash savings to marketable securities until the funds are needed

a)Transaction motivec)Speculative motive

b)Safety motived)Answer not given

26.Commercial banks and other savings banks are subject to government regulations whose primary purpose is to

a)Ensure the banks profitability

b)Protect the banks creditors and depositors

c)Protect the bank's interest

d)Ensure the bank's payment of taxes

27.The ease with which an asset may be converted into cash is

a)Creditabilityc)Liquidity

b)Cost of moneyd)Liability

28.The following are classified as passive income, which is not ?

a)Interest on bank deposits in the Philippines

b)Royalty income from books and literary arts

c)Prizes won in contest in the Philippines

d)Salary received as employee

29.Firms' reasons for investing their available cash to marketable securities while waiting for the need for such funds is to secure it?

a)Transaction motivec)Speculative motive

b)Safety motived)Answer not given

30.The term interest rates is sometimes referred to as

a)Cost of moneyc)Cost of sales

b)Cost of creditd)Cost of purchase

31.The following are classified as ordinary or regular income, which is not

a)Business incomec)Gain on sale of properties abroad

b)Compensation incomed)Income from foreign currency deposit

32.The following are classified as an asset, which is not ?

a)Accounts receivablec)Accounts payable

b)Merchandise for saled)Interest income on bank deposits

33.A principle of personal finance that you should always have some of your money available

at a moment's notice to meet emergencies or unexpected needs.

a)Time value of moneyc)Importance of liquidity

b)Protect yourself and othersd) The power of budgeting