Introduction to Investment

Question 1

is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Answer 1

Interest Rate

Question 2

is the initial size of a loan and can also refer to a loan balance that is still outstanding.

Answer 2

Principal Amount

Question 3

are physical and measurable assets that are used in a company’s operations like property, plant and equipment.

Answer 3

Tangible Assets

Question 4

refer to any mechanism used for generating future income.

Answer 4

Investment

Question 5

it is an asset or item acquired with the goal of generating income or appreciation.

Answer 5

Investment

Question 6

Consists of money placed by an individual or a company into financial institutions or banks for safekeeping.

Answer 6

Bank Deposits

Question 7

are suitable for people who have a definite income and are looking to save money: The funds on this account are easily accessible.

Answer 7

Savings Account

Question 8

on this account, the bank does not pay any. interest on the balance.

Answer 8

Checking or Current Account

Question 9

account is a type of bank account where your money is locked in for a period of time.

Answer 9

Time Deposit Account

Question 10

Is a means of protection from a financial loss. It is a reimbursement against losses of fire, typhoons, car accidents. plane crash accidents, death etc.

Answer 10

Insurance Company

Question 11

This insurance pays money in a large amount to the surviving family on the insured person’s death or after a certain period.

Answer 11

Life Insurance

Question 12

This insurance provides only death benefit payment for a fixed period. If the policyholder does not die within the term period, the coverage ends, and the policyholder gets nothing.

Answer 12

Term Life Insurance

Question 13

Provides lifelong coverage or until the insured is 100 years old, with death benefit and an investment component. This type of insurance eams dividends, the policyholder can borrow or withdraw the cash. partially or fully.

Answer 13

Whole Life Insurance

Question 14

Provides death, disability, and living benefits with investment component. In this type of insurance, the policyholder can choose to invest in various assets. including bonds, stocks, and money market funds.

Answer 14

Variables Universal Life Insurance (VUL)

Question 15

This type of insurance covers or pays for medical, surgical, prescription drug and sometimes dental expenses incurred by the policyholder.

Answer 15

Health Insurance

Question 16

is a property insurance that covers damage and losses caused by fire. It covers a policyholder against fire loss. These are fires brought by faulty wirings, lightning, gas explosions, and other natural disasters.

Answer 16

Fire Insurance

Question 17

This type of Insurance is a combination of savings and at the same time an insurance..

Answer 17

Educational Insurance

Question 18

is purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Answer 18

Car Insurance

Question 19

covers anyone outside your car and those riding with you who aren’t your employees or a family member within the second-degree consanguinity or affinity are also considered third party persons, so they are covered by the insurance

Answer 19

Compulsory Third Party Liability Insurance

Question 20

This type of insurance offers wider range of coverage that can protect you from all sorts of risks, although the coverage does depend on the insurance providers.

Answer 20

Comprehensive Car Insurance

Question 21

Is the land and any permanent improvements attached to the land, whether natural or man-made including water, trees, minerals, buildings. homes, fences and bridges.

Answer 21

Real Estate

Question 22

are exclusively used for private living quarters. A building that is used or suitable for use as dwelling or is in the process of being constructed or adapted for use as a dwelling.

Answer 22

Residential Estate

Question 23

relates to any property used for business like commerce or activities like hospitals, warehouses. shopping centers, offices or any other places for business enterprise

Answer 23

Commercial Estate

Question 24

refers to a place where the facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries. This estate provides all infrastructural facilities such as power, water, and lighting at a reasonable cost.

Answer 24

Industrial Estate

Question 25

in the business sense, can refer to property, minus buildings, and equipment, which is designated by fixed spatial boundaries.

Answer 25

Land Estate