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Last Exam Flashcards

1
Q

A strong currency means importation is cheap.

A

true

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2
Q

A weak currency means exportation is expensive.

A

false

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3
Q

In FOREX, prices change in small increments and fast.

A

true

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3
Q

FOREX is the most liquid investment as there are many buyers and sellers at the same
time.

A

true

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4
Q

Tourism is one of the biggest contributors to the stability of a given currency.

A

true

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5
Q

The Foreign Direct Investment (FDI) brings in more peso to the Philippines.

A

false

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6
Q

The Gross International Reserve (GIR) is the country’s reserve of dollar and other foreign
currencies.

A

true

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7
Q

Pegged FOREX adheres to the law of supply and demand in currencies.

A

false

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8
Q

Same as bonds. BIP is used to determine price movement of a currency

A

false

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9
Q

Currency is defined as a medium of exchange of goods and services.

A

true

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10
Q

Google is an example of a cryptocurrency.

A

false

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11
Q

When buying and selling currencies trades are conducted in blocks

A

false

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12
Q

Only listed companies need funds.

A

false

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13
Q

Public corporations are listed in the stock market.

A

true

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14
Q

Stock markets are primary markets.

A

false

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15
Q

Funds needed by a corporation are obtained at the secondary market.

A

false

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16
Q

If you buy shares of stocks of a company, you are a part owner of that said company

A

true

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17
Q

The main issue when a corporation issues additional stock to raise funds, is that they are
giving up control.

A

true

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18
Q

In stock trading, buy high, sell low.

A

false

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19
Q

The Philippine stock index (PSEl) is composed of 31 actively traded companies.

A

false

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20
Q

Cash dividend is one of the ways to earn income when investing into stocks.

A

true

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21
Q

There is no rejection or non-acceptance of stock subscription even it has exceeded both
maximum gain or loss of the said stock.

A

false

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22
Q

In the PSE, ALL SHARES represent all the shares of the listed companies in the stock
market.

A

true

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23
Q

When buying stocks, the first thing you should do is choose a stockbroker.

A

true

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24
This is another way to analyze a listed company, take a look at the track records of those managing and how well-managed the company is.
true
25
A certificate is issued when you buy shares of stocks.
false
26
Bonds can be interchangeably used with the word fixed income.
true
27
A bond is like a time deposit, with fixed rate, maturity.
true
28
Bonds, just like stocks, are risky assets.
true
29
There is an inverse relationship between interest and price.
true
30
Coupon rate = YTM, the price of the bond is at par.
true
31
Coupon rate > YTM, the price of the bond is trading at a discount
false
32
Coupon rate < YTM, the price of the bond is trading at a premium.
false
33
RTB 15-1 means it will mature after 15 years and it is the first issue.
true
34
Interest rate is computed as I = PxRxT/360 or 365.
true
35
RTB/Treasury Bills/FXTN/ROP are examples of corporate securities
false
36
GS are considered default risk free rate
true
37
Sell high, buy low if you use yield basis in buying bonds
false
38
Government and corporations can issue bonds.
true
39
Financial Institutions have nothing to do with the bond issuance as they are not issuers neither buyers of these securities.
false
40
Coupon payments can be monthly, quarterly, semiannual and annual
true
41
In the Philippines, peso being the legal tender, can only issue a peso denominated bonds.
false
42
All bonds should have an issuer
true
43
Bonds are held under these three categories: Held for trading, available to sale, held to issuance.
false
44
Economic news will affect bond trading
true
45
Yields move as prices move
true
46
Rates are all quoted gross
true
47
Yields move by BIPs (basis points).
true
48
It is on the secondary market that the issuer of the bond will obtain the needed funds
false
49
Only listed companies need funds
false
50
Bonds are illiquid assets.
51
Public corporations are listed in the stock market.
true
52
Stock markets are primary markets
false
53
Fund needed by a corporation is obtained at the secondary market.
false
54
If you buy shares of stocks of a company, you are a part owner of that said company.
true
55
The main issue when a corporation issues additional stocks to raise funds, is that they are giving up control.
true
56
Companies can borrow funds at the financial markets
true
57
The Philippine stock index (PSE) is composed of 31 actively traded companies.
false
58
Cash dividend is one of the ways to earn income when investing into stocks.
true
59
There is no rejection or non-acceptance of stock subscription even it has exceeded both maximum gain or loss of the said stock.
false
60
In the buying transaction of stocks, you will be paying more because of commission and fees charged by the offices involved in the said stock transactions.
true
61
In the PSE, ALL SHARES represent all the shares of the listed companies in the stock market
true
62
In analyzing what stocks to buy or to sell, we have three fundamental approaches: Top Down approach ,Bottom Up and sideways
false
63
When buying stocks, the first thing you should do is choose a stock broker
true
64
This is another way to analyze a listed company, take a look at the track records of those managing and how well-managed the listed company is
true
65
A certificate is issued when you buy shares of stocks.
false
66
No two clients have the same financial needs
true
67
Asset allocation is not essential in portfolio management
false
68
This is the person that counsels and does investment on behalf of a client
Portfolio manager
69
Risk is unavoidable that is why we need to manage them.
true
70
This is defined as the art and science of making decisions about the investment mix and policy, matching investment to objectives
Portfolio management
71
If you are given this exchange rate USD/CAD =1.28, which currency is strong?
USD
72
This is a statistical measure of volatility by calculating the variance in prices as it moves to the mean or average return over a period so the higher the variance, the more volatile the investments.
Standard deviation
73
This refers to the collection of investment tools such as stocks, bonds, cash, and so on.
portfolio
74
This is the position of a trader when he is expecting the market to go down, usually a trader here is pessimistic
short position
75
In portfolio management, you need to have an aggressive investment profile
false
76
This is getting into different classes to diversify the portfolio of a client basing on his objectives and risk appetite.
Diversification
77
Diversification being a risk management technique is not a key element in portfolio management
false
78
This is the foreign currency reserves of a given country.
Gross international reserves
79
Matching your investment to your financial obligation is one of the roles of a portfolio managers
false
80
This is used to measure volatility against the benchmark
Alpha
81

CFMP (5 decks)

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