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Business Finance > 1st Mastery Test > Flashcards

1st Mastery Test Flashcards

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1
Q

It is the study of how the players in a financial system acquire, spend, manage, and make other sound financial decisions concerning money and other financial resources.
•Describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments.

A

Finance

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2
Q

It refers to managing an individual’s monetary resources across five key areas—income, savings, investments, expenditure, and assets protection.
The goal is to make intelligent investment decisions and build a safety net that sustains the individual without constraints or bad debts.

A

Personal Finance

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3
Q

Like individuals, governments need to allocate their resources to different sectors of the economy. It is how federal, state, and local institutions track revenue and manage expenses for all the services they provide to the public.

A

Public Finance

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4
Q

It covers all the financial activities related to running a business. You can think of this in terms of acquisitions and investments, funding, capital budgeting, risk management, and tax management needed for business growth in financial markets.
Companies need to maintain a balance between cash flow, risks and investment opportunities to increase their value and strengthen their capital structure.

A

Corporate or Business Finance

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5
Q

Basic Functions of Money

A
  1. Medium of Exchange
  2. Unit of Account
  3. Store of Value
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6
Q

Reasons to Study Finance

A
  • To be able to manage money or financial resources
  • To be able to make sound economic decisions
  • To be able to arrive at sound personal and business investment decisions
  • To be able to understand the career path available to finance professionals
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7
Q

Careers in Finance

A

Commerce & Industry

Government

Academe

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8
Q

Academe

A
  1. Lecturer
  2. Researcher
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9
Q

Government

A

1.Administrative Clerk
2. Examiner
3.Collections Officer

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10
Q

Commerce & Industry

A

1.Financial Analyst
2.Cash Management
Analyst
3.Credit Analyst
4.Bank Tellers
5. Investment
Researchers 6.Real Estate Agent 7.Financial Advisors

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11
Q

Characteristics or Areas of Financial Environment

A

Financial Institutions and markets

Financial Markets

Investments

Financial Management

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12
Q

are organizations or intermediaries that help the financial system operates efficiently and transfer funds from depositors and investors to individuals, business, and governments.

example: banks, insurance companies, & lending institutions

A

Financial Institutions and markets

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13
Q

describes any market place where trading of securities such as shares, bonds and currencies occurs

in the Philippines —Philippine Stock Exchange (PSE)

A

Financial Markets

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14
Q

focuses on the decisions made by businesses and individuals as they choose securities for their investment portfolios.
example: sales or marketing of securities, analysis of securities

A

Investments

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15
Q

involves financial planning, asset management, and decisions to increase the value of the stakeholders.

deals with decisions concerning cash flows, including both inflows and outflows

A

Financial Management

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16
Q

•Are assets that can be traded, or they can also be packages of capital that may be traded

•These assets can be cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one’s ownership of an entity

A

Financial Instrument

17
Q

any physical or electronic documents that has intrinsic monetary value or transfer value.

A

Financial Instruments

18
Q

primarily issued by corporations to generate cash or to acquire an asset

it could either take the form of a debt security or an equity security

A

Securities

19
Q

refers to corporate bonds (or liability securities)

A

debt security

20
Q

refers to corporation shares

A

equity security

21
Q

represents an ownership interest in a corporation

A

Share

22
Q

supervised and regulated by
the BSP

A

Banks

23
Q

an establishment for the deposit, custody, and issue of money, for making loans and for making the exchange of funds easier

A

BSP

24
Q

Accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans.
Examples (BPI Family Savings Bank (a subsidiary of BPI), China Bank Savings)

A

Savings Bank

25
Q

Represent the more popular type of banks in the rural communities.
(Examples: ASPAC Rural Bank, Inc., BDO Network Bank (a subsidiary of BDO Unibank, Inc.),

A

Universal and commercial banks

26
Q

Represents non-commercial banks composed of savings and mortgage banks, private development banks, stock savings and loan associations and microfinance thrift banks.

Example (HSBC Savings Bank (Phils), Inc., Equicom Savings Bank, Inc.)

A

Thrift Banks

27
Q

Various Financial Markets

A

Money market

Capital market

Primary market

Secondary market

28
Q

markets which previously issued instruments or securities are traded. (buying & selling of existing markets)

A

Secondary market

29
Q

which financial instruments and securities are financially offered or sold with the proceeds going to the issuer (setting up for new business or expansion)

A

Primary market

30
Q

the markets in which debt instruments with maturities longer than one year and equity securities are traded

A

Capital market

31
Q

the markets in which debt securities with maturities of one year or less are traded (short term funds)

A

Money market

32
Q

Subtypes of Secondary Market

A

Securities markets

Mortgage markets

Derivative markets

Currency exchange markets

33
Q

also called foreign exchange (FOREX) market where banks and institutional traders buy and sell various currencies on behalf of businesses and other clients

A

Currency exchange markets

34
Q

where derivative securities are purchased and sold

A

Derivative markets

35
Q

where mortgage instruments or loans, backed by real property in the form of buildings and houses, are originated and traded

A

Mortgage markets

36
Q

where previously issued debt and equity securities are sold and traded

A

Securities markets

37
Q

Forms of
Business
Organizations

A

• Sole Proprietorship

• Partnership

• Corporation

Business Finance (3 decks)

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