BF Reviewer Module 1 4

MODULE 1 & 2
I. Multiple Choice
1. an asset or commodity acquired with the intention of producing revenue or appreciation
a. Risk
b. Investment
c. Appreciation
d. Danger
2. probability that the actual gains of an investment will vary from an expected outcome or return
a. Risk
b. Investment
c. Appreciation
d. Danger
3. an increase over time in the value of an asset
a. Risk
b. Investment
c. Appreciation
d. Danger
4. risk that is undiversifiable
a. Risk
b. Market risk
c. Specific Risk
d. Danger
5. risk that is diversifiable
a. Risk
b. Market risk
c. Specific Risk
d. Danger
6. Contract (policy) in which a person or organization receives financial security or compensation
a. Currencies
b. Commodities
c. Real Estate
d. Insurance
7. a pool of funds raised by several investors to invest in stocks, bonds, and related assets and managed by banks
a. Mutual Funds
b. UITF
c. Bonds
d. Stocks
8. Debt investments in which an investor lends money to an entity that borrows the funds at a variable or common fixed
interest rate for a given period
a. Mutual Funds
b. Bank Deposits
c. Bonds
d. Stocks
9. widely accepted type of money issued by a government and circulated within an economy, including coins and paper
notes
a. Currencies
b. Commodities
c. Real Estate
d. Insurance
10. Money put in for safekeeping at a banking institution
a. Mutual Funds
b. Bank Deposits
c. Bonds
d. Stocks
11. a pool of funds raised by several investors to invest in stocks, bonds, and related assets and managed by insurance
companies
a. Mutual Funds
b. UITF
c. Bonds
d. Stocks
12. basic good used in business that is exchangeable with other products of the same type
a. Currencies
b. Commodities
c. Real Estate
d. Insurance
13. form of security that means ownership of a company and represents a claim on part of the assets and earnings of the
corporation
a. Mutual Funds
b. Bank Deposits
c. Bonds
d. Stocks
14. Land and any improvements on it (i.e. farm, house and lot, land, condominiums, apartments).
a. Currencies
b. Commodities
c. Real Estate
d. Insurance
15. Stocks can gain limited profit if the company is performing well
a. True
b. False
16. Lands appreciates over time as it becomes scarce
a. True
b. False
17. The higher the return, the lower the risk; the lower the return, the lower the risk
a. both statements are true
b. both statements are false
c. only statement a is true
d. only statement b is true
18. Insurance can give the policyholder's dividend share
a. True
b. False
19. UITF is managed by banks; Mutual Funds are administered by insurance companies
a. both statements are true
b. both statements are false
c. only statement a is true
d. only statement b is true
20. Stocks can give investors the shareholder rights such as dividends and voting rights.
a. True
b. False
Module 3
11. Refers to knowledge of facts, concepts, principles, and technological tools that are
fundamental to being smart about money.
a. Budgeting b. Financial literacy c. Financial responsibility d. Investing
2. Means that you are accountable for your future financial well-being and that you strive
to make good decisions in personal finance.
A. Budgeting B. Financial literacy C. Financial responsibility D. Investing
3. It is the basis to determine the present and future value of your investment.
A. Budgeting B. Financial planning C. Knowledge D. Time value of money
4. It includes all financial decisions and activities of an individual including budgeting,

insurance, mortgage planning, savings, and retirement planning.
A. Financial responsibility B. Financial literacy C. Investing D. Personal finance
5-7. Give at least 3 basic principles of personal finance
8-10. List down 3 good money habits in personal finance
MODULE 4
1. It is a document containing a person's current money situation and long-term monetary
goals, as well as strategies to achieve those goals
a. Budgeting b. Financial Planning c. Financial Statements d. Saving
2. This lays the foundation for the financial planning process and provides clarity about the
client’s financial destination
a. Develop the financial plan with recommendations and alternatives b. Establish goals
c. Gather relevant data d. Implement the plan
3. The step where alternatives and recommendations is presented to individuals who are
making a financial plan
a. Develop the financial plan with recommendations and alternatives b. Establish goals c.
Gather relevant data d. Implement the plan
4. The step where plan must be put into action, otherwise, the financial plan will just be a
simple document.
a. Establish goals b. Gather relevant data c. Implement the plan d. Monitor
the progress of the plan
5. Evaluating the implementation and effectiveness of the plan

a. Establish goals b. Gather relevant data c. Implement the plan d. Monitor the
progress of the plan
6. It is simply having a financial discipline, know when to buy, when to save and when to
invest.
a. Financial Management b. Financial Planning c. Money Management d. Personal
Financing
7. He is one of the most known motivational speakers, financial consultant, and business
coach in the country and an author of books.
a. Chinkee Tan b. George Eliot c. George Orwell d. William Blake
8. “Never get your eggs from one basket. Having one source of income is never enough. You
need to generate income for the short-term, medium-term and long-term.”
a. Live a lifestyle of simplicity b. Live to earn from multiple sources of income
c. Live to learn and invest in financial education d. Live to spend in cash and avoid getting
into bad debts
9. Reading financial books, watching vlogs from financial advisors will help you learn the
basics of investing and saving.
into bad debts
10. Prioritize first the essentials or necessities rather than buying luxurious things that you
desire.
into bad debts
Identify TRUE or FALSE

11. Every individual must observe financial discipline
12. Every individual has a unique financial position, before you begin to plan, you will have
to carefully think about your needs and then prioritize your goals.
13. Financial planning will help you ensure that you will have funds available to meet only
your future needs.
14. Money management also refers to Investment management
15. You should not differentiate needs from wants on your list.

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MODULE 1 & 2

4. It includes all financial decisions and activities of an individual including budgeting,

5. Evaluating the implementation and effectiveness of the plan

Identify TRUE or FALSE

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