Liquidity Buffer and Forms of Investment Quiz

<p>Optimizing results, considering risks, and evaluating performance (B)</p> Signup and view all the answers

<p>To be able to engage in activities of interest and have control over time (D)</p> Signup and view all the answers

<p>Forced to work primarily for financial compensation even in old age (A)</p> Signup and view all the answers

<p>To increase equity and earn profit (B)</p> Signup and view all the answers

<p>Decreases current pleasures (C)</p> Signup and view all the answers

<p>Bank accounts and real estate (A)</p> Signup and view all the answers

<p>To protect financial resources from losing value due to inflation (A)</p> Signup and view all the answers

<p>Money available for investment without affecting day-to-day operations (A)</p> Signup and view all the answers

<p>Real estate is a tangible asset while bank accounts are not (C)</p> Signup and view all the answers

<p>The amount of cash that an entity must hold for unexpected cash requirements (D)</p> Signup and view all the answers

<p>Interest rate on time deposit is higher than savings account (A)</p> Signup and view all the answers

<p>Short-term promissory notes issued by the national government (D)</p> Signup and view all the answers

<p>Interest bearing promissory notes issued by big firms (D)</p> Signup and view all the answers

<p>Pooling of investors' money by a stock corporation (B)</p> Signup and view all the answers

<p>Shares in the ownership of corporate entities (B)</p> Signup and view all the answers

<p>Time deposits, jewelry, real estate (D)</p> Signup and view all the answers

<p>Allocation of investable funds between different investment items (D)</p> Signup and view all the answers

<p>A person or office making decisions on investments (B)</p> Signup and view all the answers

<p>Commercial papers, treasury bills (D)</p> Signup and view all the answers

<p>Failure to make a financial plan for the future (D)</p> Signup and view all the answers

<p>Venues for buying and selling financial instruments (B)</p> Signup and view all the answers

<p>Instruments whose value is based on the value of other assets (D)</p> Signup and view all the answers

<p>Options (D)</p> Signup and view all the answers

<p>It involves an obligation to trade at a set price on a fixed date (C)</p> Signup and view all the answers

<p>Diamonds (D)</p> Signup and view all the answers

<p>To assess their financial strength and debt repayment ability (A)</p> Signup and view all the answers

<p>The greater the risk, the greater the opportunity for profit (B)</p> Signup and view all the answers

Determining financial goals and strategies for achieving them.

Investing to protect your wealth from inflation's erosion.

The primary goal of investing is to minimize financial worry in the future.

Involves optimizing investment returns, managing risks, and analyzing performance.

Investing can provide the means to be financially independent and pursue interests.

If one doesn't invest, they might have to work solely for income even in old age.

Investing aims to grow your wealth by earning profits and increasing its value.

Investing requires sacrifices in current enjoyment to potentially benefit in the future.

A collection of various investments, often including bank accounts and real estate.

Investments can act as a shield against inflation, protecting your money from diminishing in value.

Cash available for investment without impacting daily operations.

Bank accounts are intangible, representing digital value, while real estate is physical and tangible.

Cash held by an entity for unexpected expenses or emergencies.

Savings accounts offer lower interest rates than time deposits, which lock money in for longer periods.

Short-term debt securities issued by the government.

Short-term debt securities issued by large corporations.

A pool of money from multiple investors managed by a corporation.

Represents a share in the ownership of a company.

Investments that are generally considered less risky, like time deposits, jewelry, and real estate.

The allocation of investable funds among different investment types.

A person or team responsible for making investment decisions.

Investment instruments traded in money markets, including commercial papers and treasury bills.

The failure to create a financial plan for the future, which can lead to poor investment choices.

Places where financial instruments are bought and sold, like stock exchanges.

Financial instruments whose value is derived from the value of other assets.

Options are a type of derivative, giving the right but not the obligation to buy or sell an asset at a predetermined price.

A contract that obligates the buyer and seller to trade an asset at a specific price on a fixed date.

Diamonds are considered precious stones, valuable for their brilliance and rarity.

Credit ratings assess an organization's financial strength and ability to repay debt.

Generally, higher risk in investments can lead to the potential for higher returns.