FINA 2103 -Personal Financial Management and Planning-Test 4C depends entirely o
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FINA 2103 -Personal Financial Management and Planning-Test 4C depends entirely on supply and demand ainvestment bCapital gains cSpeculation d. Detivatives e Rent is an example of a lending investment a. Real estate b. Stocks c Savings d. Bitcoin e Matual Fands 3. A question to ask in investment planning to ensure focus is a. How much money do I need? b. how old am 1? c how much money do 1 make? d. where do I live 4. When an investment goes down in valuc, it is called a. Investment gain b. Capital gain c Capital loss d. Asset loss 5. A nominal interest rate is the rate of retam quoted on an investment a. True b. False Diversification is principle 6. 7. Unsystematic risk is diversifiable a. True b. False 8. Time Horizon is not a factor impacting asset allocation decision True b False 9 In investing, principle is very relevant, that nothing happens without a plan a 1 a b 3 c8 d 6 e2 10. One of the tips to getting your investment progeam started is a. Buying that new car b Making a down payment on the house e. Making investment sutomatike d Payjieg tases on time 11.Asset allocation is determining if you will like to invest True b False 12.Bonds ate examples of an ownership investment True b. False 13.Javestment is putting money in an asset that generates value or a return a True b. False 14.You bought 400 shares at $90 each. After 6 months, the shares ate now worth $60 each. If the company paid $1.50 dividend per share duting the 6 months, how much profit or loss have you made on the transaction? a. $12,000 gain b. $12,000 loss c$11,400 loss d $11,400 gain e. $12,600 loss 15.All risks can be diversified a. True b. False 16.One advantage of lending investments is that your rate of return is known/fixed a True b. False 17.A disadvantage of an ownership investment is that you do not share in the gain of the company invested in a. True b. False 18.Your capacity for risk and financial situation is a factor in determining how your asset allocation is donc a True b False and -. are two steps involved in making an investment plan 19. a. Attach costs to each goal/make more money b. write your goals down/teevaluate them c put a time to when money is needed/plan for retirement d. attach costs to each goal/tisk and retum ate telated 20.Interest income is NOT an investment return a. True b. False a. True b. False 21.The real rate of return does not take iaflation into consideration 22 Principleemphasizes that the earlier you start investing, the better (time value of money) a. 3 b.4 c6 d.2 e5 is following the where everyone else is investing e. None of the above b.Stocks c. Mutual Funds 23. d. Herd Behavior c. Crowd effect 24. The shorter the time horizon for investing, the more risk you can take 25. The riskiest investments are a. House effect b. Disposition effect a. True b. False d. Bonds a. Treasury billsExplanation / Answer
1. Rent rates entirely depends on the demand and supply.
2. Savings is an example of lending investments, as the depositor lends money to the bank.
3. A very important question to ask yourself before making any investment planning is to ask......
a. How much money do I need?
One should be clear in its objective of investment, the goal of investment should be clear, before making any investment planning.
4. Capital Loss: Whenever there is a decrease in value of the investment, it is known as capital loss.
5. True
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