Don Bosco Technical Institute of Makati: Second Semester, S.Y. 2017-2018

Don Bosco Technical Institute of Makati
Second Semester, S.Y. 2017-2018

SENIOR HIGH SCHOOL
BUSINESS FINANCE
LONG TEST EXAMINATION
Jon Karl I. Marasigan
I. MULTIPLE CHOICE
Directions: Highlight with yellow color the correct answer. Highlight the whole choice.
1. What is used for larger transactions?

a. Post-dated checks (PDCs) c. Electronic money transfers
b. Pre-authorized debits d. Wire transfers
2. This gives the firm a limited authority to debit customer’s account.

a. Post-dated checks (PDCs) c. Electronic money transfers
b. Pre-authorized debits d. Wire transfers
3. This is where post-dated checks issued by customers are stored.

a. Pre-authorized debits c. Wire transfers
b. Electronic money transfers d. Check warehousing
4. Time value of money is the idea:

a. That money available now is c. That money available now is
worth worth
less than the same amount that will more than the same amount that
be available in some future date. will be available in some future
b. That money available now is date.
worth d. That money available now is
less than the same amount that will worth
be available in some present more than the same amount that
date. will be available in some present
date.
5. What is the amount earned when money is loaned or invested in a financial product that
promises earnings after a certain period of time?
a. Future Value c. Simple Interest
b. Interest d. Compound Interest
6. What do you call the No interest earned on top of interest that was earned in the previous
period?
7. What do you call the Interest earned on the interest that was earned from the previous periods?
8. What is the formula for the Future Value?

PV c. PV ¿
a.
¿¿ d. PV ¿
PV
b.
¿¿
9. What is the Formula for the Present Value?

FV c. FV ¿
a.
¿¿ d. FV ¿
FV
b.
¿¿
10. The following are uses of Short-term Funds, except one:

a. Payment of long-term obligations c. Allowance for receivables
b. Funding for short-term projects d. Funding for unforeseen events
and/or programs
11. The following are some suppliers of Short-term Funds, except one:
a. Trade Investor c. Finance Companies
b. Commercial Banks d. Insurance Companies
12. What do you call the “department stores of finance” because they cater to a variety of savers and
borrowers?
a. Commercial Paper Houses c. Commercial Banks
b. Finance Companies d. Insurance Company
13. What firms whose lines of business is to provide short-term and intermediate loans to both
consumers and other businesses?
a. Company Accruals c. Commercial Banks
b. Finance Companies d. Commercial Papers
14. What do you call the Suppliers that extend credit to a firm?
a. Trade Creditors c. Finance Companies
b. Commercial Banks d. Factoring
15. What do you call the Financial service wherein a factor purchases accounts receivables?
a. Finance Companies d. Commercial Papers
b. Company Accruals
c. Factoring
16. What do you call an unsecured debt with a fixed maturity?

a. Trade Creditors c. Factoring
b. Company Accruals d. Commercial Papers
17. The following are some providers of Intermediate-term Financing, except one:
a. Private Sectors c. Commercial Banks
b. Government d. Insurance
18. What are firms using to finance the acquisition of fixed assets, additional funds for working
capital, and repayment of other obligations. This loan is a maximum of ten years?
a. Straight-term Loan c. Debit Line
b. Credit Line d. Revolving Credit Agreement
19. What is an agreement between a bank and a borrower which indicates the maximum amount of
loan that may be granted by the bank for a specified period of time?
20. What is a committed line of credit extended by a bank to a borrower? The borrower is required
to pay annual fee.
21. Borrowed funds from the Finance Companies may be used for the following, except one:
a. Additional capital c. Construction of buildings
b. Sell or degrade of machinery and d. Payment for the shares of partners
equipment or stockholders
22. What does companies used to classify their stocks that are issued as either Class A or Class B?
a. Classified Common Stock c. Guaranteed Stock
b. Deferred Stock d. Debenture Stock
23. What type of stock is normally issued as a form of incentive to people, who, in one way or
another, had major contributions in the formation of the business?
a. Voting Trust Certificate c. Deferred Stock
b. Classified Common Stack d. Debenture Stock
24. What kind of stocks are issued to trustees of a corporation to provide them with the power to
vote?
a. Guaranteed Stocks
b. Voting Trust Certificate
c. Classified Common Stock

d. Deferred Stock
25. The following are some of the 5C’s of Credit, except one:
a. Corporate c. Capital
b. Character d. Collateral
26. What states that for the financial market to be considered efficient, it has to reflect all
information in determining the prices of securities and other investment products?
a. Capital Market c. Secondary Market
b. Primary Market d. Efficient Market Hypothesis
27. What is a type of risk in which a firm will be unable to fulfill its financial obligations?
a. Interest Rate Risk c. Credit or Default Risk

b. Political Risk d. Market Risk
28. What is a type of risk associated with governments changing laws, policies, and regulations?
a. Country Risk c. Interest Rate Risk
b. Political Risk d. Market Risk
29. The following encompasses Personal Finance aspects, except for one:
a. Setting one’s financial goals and c. Retirement Planning
objectives d. Assessing one’s savings financial
b. Savings and Investment position
30. The following are Life Insurance Coverage covers, except for one:
a. Death
b. Injuries resulting from accidents
c. Retirement
d. All of the above

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Don Bosco Technical Institute of Makati

Second Semester, S.Y. 2017-2018

1. What is used for larger transactions?

2. This gives the firm a limited authority to debit customer’s account.

3. This is where post-dated checks issued by customers are stored.

4. Time value of money is the idea:

8. What is the formula for the Future Value?

9. What is the Formula for the Present Value?

10. The following are uses of Short-term Funds, except one:

16. What do you call an unsecured debt with a fixed maturity?

c. Classified Common Stock

a. Interest Rate Risk c. Credit or Default Risk

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