Family Wealth

_______ is the average annual increase of college / university tuition in the Philippines. 4% None of the above 10% 15%

10%

When an investment in the stock market falls by 50%, what percentage should it increase to recover from the loss? 51% 100% 99% 50%

100%

What is the common level of acceptable cut loss percentage for a stock trader? 3% 10% 5% 2%

2%

_______ is one of the factor needed to determine the number of years of your Educational Plan. Gender of Child Age of Payor Age of Child Location of School

Age of Child

The following are true when you have Educational Planning, EXCEPT? Freedom to choose the best schools Consistent access to education All of the choices No need to avail high-interest loans

All of the choices

The following are ways to address wealth reduction over time, EXCEPT? Put up a family investment committee Establish a trust Appoint a trustee Employ financial planning professionals

Appoint a trustee

What is the FIRST step in financial planning? Recalibrate financial progress Assess financial position Define financial goals Plan development

Assess Financial Position

_______ is a strategy which categorizes your investments based on your time horizon. Cost Averaging Asset Allocation Portfolio Diversification Buy and Hold

Asset Allocation

In the SAG Model, short-term goals should always include? Being debt free Money for Retirement Insurance and Investments Freelancing

Being Debt Free

What do you think is your edge to your parents / older relatives when it comes to business? Being a tiktoker Aggressive investments Being tech-savvy More energy

Being tech-savvy

The Rockefeller family is know as america's first what? Billionaire Philanthropist Millionaire Discovered oil

Billionaire

Which of the following is NOT an Economic Indicator? Birth Rate Unemployment Rate Gross Domestic Product Inflation Rate

Birth Rate

_______ are loans from investors to borrowers for a set period. Usually issued by a private corporation or government. Bonds Mutual Funds Stocks Time Deposit

Bonds

Which of the following is an example of a common mistake of a long-term investor? Borrowing to recover losses Buying low and selling high None of the above Having realistic goals

Borrowing to recover losses

It is usually the _______ that makes all the investment decisions. Father Family Investment Committee All family members Both Parents

Both Parents

_______ is a long-term investment strategy which means buying diversified shares of stock and sticking with it overtime as you reinvest the annual dividends received. Asset Allocation Cost Averaging Buy and Hold Portfolio Diversification

Buy and Hold

Economy is a system of managing the production and employment resources of the following, EXCEPT? Country Community City State

City

_______ is a broad measure of changes in the prices of all goods and services purchased for consumption by urban households. Buying Capacity Purchasing Power Consumer Price index Economic Indicator

Consumer Price Index

What is the SECOND step in financial planning? Recalibrate financial progress Define financial goals Assess financial position Monitor and control financial progress

Define Financial Goals

Rather than the committee acting as a whole, _______ promotes efficiency and productivity. Transferring Entrusting Delegating Cascading

Delegating

What is the common number of bank accounts a family investment committee should maintain? Depends on the situation As many as possible 10 bank accounts 5 bank accounts

Depends on the Situation

Which of the following is NOT a role of a Family Investment Committee? Plan Designate Monitor Implement

Designate

The following are investment returns, EXCEPT? Rent Dividends Diversification Interest

Diversification

_______ is a process by which the economy grows and contracts every time. Growth Cycle Classic Cycle Economic Cycle Entrepreneurship Cycle

Economic Cycle

The difference of the following should be accepted by current leaders to future leaders, EXCEPT? Motivations Effort Priorities Principles

Effort

What is the prerequisite subject of Family Wealth Planning and Stewardship? Financial Literacy Family Business Family Business and Financial Literacy None

Financial Literacy

_______ is what an investment or series of investments will be at a point in the future. Time Value of Money Future Investment Amount Long-term investment Future Value

Future Value

Without _______, business continuity can suffer causing significant inefficiency and disruption. Financial Planning Sustainability Succession Planning Governance

Governance

_______ reports how much economic activity (goods and services) within the nation's borders during a given period. Inflation Rate Gross Domestic Product Gross National Product Economic Growth

Gross Domestic Product

According to David Rockefeller Jr., the following are the key elements to preserve wealth, EXCEPT? Holding regular get togethers with family Having strong family values Maintaining family history Having a family business

Having A Family Business

The following are combined composition of basic Educational Plan, EXCEPT? Savings Account Insurance Investment Health

Health

The process by which the cost of all goods and services tends to increase over time. Weak peso value Golden Age Price Hike Inflation

Inflation

Which of the following is a disadvantage of a long-term low risk investment? Time-factor Liquidity Inflation Taxes

Inflation

Financial Literacy is the knowledge the following, EXCEPT? Concepts Principles Technological tools Information

Information

In Education Planning, ______ provides life protection to the payor during the term of the plan. Investment Policy Securities Insurance

Insurance

In the SAG Model, long-term goals should always include? Money Buying new house Vacations Insurance and Investments

Insurance and Investments

In the stock market, you should always follow the statements below, EXCEPT? Allocate an investment fund limit. Invest in the latest international companies entering the PH market via IPO. Study various strategies first before-implementing them. Research on the company you plan to buy.

Invest in the latest international companies entering the PH market via IPO.

Build trust through proactive engagement also means what? Involve younger generation from the age of 16 Ensure development of hard and soft skills Let the next generation have their own space within the business Make tangible impact to the community

Involve younger generation from the age of 16

Providing mentorship also means what? Involve younger generation from the age of 16 Let the next generation have their own space within the business Ensure development of knowledge Ensure development of hard and soft skills

Let the next generation have their own space within the business

Which of the following is not a practical financial tip? Invest your Nest Egg Life events accompany financial decisions Build Your Network Snowball Cashflow

Life Events accompany financial decision

Which of the following is NOT a proactive approach in wealth preservation? Governance Training the next generation Low risk investments Financial Planning

Low Risk Investment

Which of the following is NOT a Capital? Manpower Energy Money Time

Manpower

What is the FOURTH step in financial planning? Monitor and control financial progress Assess financial position Plan development Define financial goals

Monitor and control financial progress

Investment Policy Statements should include the following, EXCEPT? Monthly Objectives Risk tolerance Performance Expectations Duties and Responsibilities

Monthly Objectives

_______ are sum of investment money merged together managed by a financial professional. Time Deposit GInvest Mutual Funds Shares of Stock

Mutual Funds

What is the core business of the Rockefeller Family? Oil Car Manufacturing Investing Banking

Oil

Personal Finance involves the following, EXCEPT? Spending Investing Resources Saving Paying Taxes

Paying Taxes

Ignoring the additional risk exposure to get paid a relatively small amount of additional income is what common mistake of a Family Investment Committee? Refusing to sell below cost Paying too much tax Liquidity of assets Paying too much for assets

Paying too much for Assets

In Education Planning, _______ should match your paying capacity. Withdrawals and Payouts. Payment Option. Riders or Add-ons. Fund Growth.

Payment Option

There is a guaranteed payout to the payor or the beneficiaries (depending on the policy) if _______ occurs. Terminal illness Hospital bill Accident Permanent Disability or Death

Permanent Disability or Death

Having no leadership among the advisory team would result to what common mistake of a Family Investment Committee? Unruly cash management No investment strategy Poor integration between advisors Falling victim to sales sharks

Poor Integration Between Advisors

_______ is a strategy for buying shares from publicly listed companies from various unrelated industries. Asset Allocation Buy and Hold Cost Averaging Portfolio Diversification

Portfolio Diversification

Which of the following is TRUE when it comes to Investment Policy Statements? Portfolio's business plan Provides detailed investment goals and objectives Provides day-to-day investment strategies It is a informal document

Portfolio's Business Plan

_______ is needed to overcome challenges and risks in family business succession and intergenerational wealth transition. Proactive Approach Aggressive Approach Positive Approach Conservative Approach

Proactive Approach

Economic Growth is the condition of increasing the? Import & Export Production & Consumption Supply & Demand Spending & Saving

Production and Consumption

Which of the following is NOT an example of soft skills? Leadership Time Management Flexibility Programming

Programming

Since the Philippines is classified as a developing country, this type of investment almost always appreciates overtime. Real Estate Properties Assets Stock Market

Real Estate

What is the FIFTH step in financial planning? Recalibrate financial progress Monitor and control financial progress Assess financial position Define financial goals

Recalibrate financial progress

Which of the following is a disadvantage of Education Planning? Risk of future of chosen company None of the above Add-ons Premiums

Risk of future of chosen company

The following are important in developing a continuity plan, EXCEPT? Successors can readily occupy a vacated role Right people have the right roles Clear decision-making responsibilities Salary is mutually agreed

Salary is Mutually Agreed

_______ is one of the riskiest yet most profitable type of investment. Mutual Funds Pag-Ibig MP2 Stock Market Bearish Market

Stock Market

_______ is a security that represents a small piece of ownership in a company. This also provides dividends to its shareholder. Stocks Equities Bonds Portfolio

Stocks

The business cycle entails a wavelike pattern of economic activity as measured by the gross domestic product with phases are the following, EXCEPT? Recovery Contraction Trough Summit

Summit

Who is the 2022 wealthiest family in the Philippines? Gokongwei Family Ayala Family Sy Family Villar Family

Sy Family

In Pag-Ibig MP2, the following statements are true, EXCEPT? There is no minimum amount required It is only open to Pag-Ibig members It has a lock in period of 5 years Your account receives dividends annually

There is no minimum amount required

Which of the following is not true when it comes to investments? Diversification is priority. Merely saving money is not enough to secure the future of your family. Transaction costs reduces returns. There is no such thing as bad investments.

There is no such thing as bad investments

It is estimated that 90% of rich families lose their wealth by the _______ generation. Fourth Second Sixth Third

Third

Which of the following is NOT an example of SMART Goal Setting? Relevant Measurable Achievable Time

Time

Philippine Deposit Insurance Corporation covers this type of Investment up to P500K. Mutual Funds Depository Account Time Deposit Pag-ibig MP2

Time Deposit

_______ "locks" a specific amount of money in a certain period of time. Mutual Funds Savings Account Time Deposit Pag-Ibig MP2

Time Deposit

Maintaining a central investment reporting platform is a solution to what common mistake of Family Investment Committee? Poor integration between advisors Unruly Cash Management Paying too much tax Paying too much for assets

Unruly Cash Management

Who is the 2022 wealthiest family in the world? Musk Family Bezos Family Arnault Family Walton Family

Walton Family

Before signing an investment deal you should first ask yourself the following questions, EXCEPT? Who gets paid if I buy this investment? What are the underlying fees? Are my interest aligned with the salesperson? When will be my ROI?

When will be my ROI?

Before investing, you should ask yourself the following questions first, EXCEPT? Where can I borrow funds that I can invest? Are my bills paid on time? Do I have access to an emergency fund? Am I willing to adjust my lifestyle to finance my investments?

Where can I borrow funds that I can invest?

The following are the perks of Education Planning, EXCEPT? Option to add riders. Your child can be accepted to any school he/she wants. Maturity benefit is often enough to cover the tuition fees. The sooner you get one, the more affordable the premiums.

Your child can be accepted to any school he/she wants.