12 Questions
What is the primary purpose of an investment according to the investor?
To generate income and accumulate wealth
What type of investment typically earns a fixed interest rate and is issued by a government or company?
Investment in Bonds
Which type of risk is almost impossible for an investor to avoid?
Systematic Risk
What type of investment involves buying a small part of a company?
Investment in Shares of Stocks
What is the purpose of a managed fund?
To pool money from various investors and invest in bonds, stocks, or a combination of investments
What is the maximum amount insured by PDIC for bank investments?
P500,000
What is an example of an event that can affect a company's investment?
A firm whose employees went on strike
What is the purpose of determining one's risk tolerance?
To understand the type of risk and minimize it
What is conducting due diligence about?
Making research about the investment instruments
What is the purpose of diversification in an investment portfolio?
To minimize unsystematic risk
How often should an investor evaluate their investment holdings?
At least once a year
What is the benefit of investing in government-guaranteed investment products?
Full backing by the Philippine government
Learn about the different types of investments, including those in banks, bonds, and more. Discover the benefits and risks of each investment option and how to make informed decisions.
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