business finance 2

Question 1

the flow of money begins with blank who opens a bank account and earns interest from the account. in exchange, these funds are lent by the banks to businesses.

Answer 1

depositor

Question 2

it serves as a link between the depositor who has the money and the lender who needs money.

Answer 2

financial intermediary

Question 3

it include commercial banks, universal banks, investment companies, finance companies, life and non-life insurance companies, mutual fund companies, and private equity firms

Answer 3

financial institution

Question 4

it is the process of managing financial matters including analysis of statements, assessment, or investment opportunities, which happens before one start investing and acquiring funds from different sources

Answer 4

financial management

Question 5

who are the two key individual roles

Answer 5

the depositor who has the funds and the borrower who needs the funds

Question 6

it is the person who has the money and puts in a savings account with a bank that pools this together with the savings from other depositors.

Answer 6

the depositor who has the funds

Question 7

it is the one who needs funds and borrows it from a bank

Answer 7

the borrower who needs the funds

Question 8

these are the tools that help a business’ daily operations and help the finance manager handles cash, short-term operating requirements, and long-term requirements

Answer 8

financial instruments

Question 9

these are funds available for a short time. they are available most of the time and do not provide very high returns.

Answer 9

money market instruments

Question 10

it is an example of long-term debt. it is a security reflecting the debts of a government’s or business’ debt promising to pay a fixed interest to the bondholder for a definite time,

Answer 10

bond

Question 11

it is another example of long-term debt that has a longer term than a money market instrument. this are similar to bonds that have regular interest payments and have a specified maturity term

Answer 11

note

Question 12

these are types of security that represent ownership in a corporation and a claim on part of the corporation’s assets and earnings

Answer 12

stocks

Question 13

two main type of stocks

Answer 13

preferred and common stock

Question 14

it is the meeting place of suppliers and users of various types of funds that can make transactions directly

Answer 14

financial market

Question 15

it refers to financial market in which buyers and sellers negotiate and transact business directly without an intermediary

Answer 15

primary market

Question 16

it is the sale of new securities to the general public and the first offering of stock is called IPO

Answer 16

public offering

Question 17

it is the sale of a new security to a private or specific buyer

Answer 17

private placement

Question 18

it refers to financial market where previously issued securities such as bonds, notes, and shares are boughth and sold

Answer 18

secondary market

Question 19

it is a venue wherein securities with short-term maturities are borrowed or loaned.

Answer 19

Money markets

Question 20

these are financial markets for stocks for a long-term period

Answer 20

capital market

Question 21

these are deposit-taking financial institutions that extend credit to the consumer market that is in the countrside or rural areas

Answer 21

thrift banks

Question 22

these are mainly deposit-taking financial institution that extend credit to the retail and consumer market, and their transactions are usually many but small, using the local currency

Answer 22

commercial banks

Question 23

they collect and secure the funds of the depositor. they also lend the money of the depositors to small and medium businesses in exchange with interest to be paid regularly for the use of the funds

Answer 23

commercial banks

Question 24

this financial institution lend money to multinational companies. the transactions are larger than commercial banks and denominated in multicurrencies not just to the local currency. they are like commercial banks but mostly their clients are larger corporations.

Answer 24

universal banks

Question 25

this financial institution provide loans to big corporations and government and can raise funds through bond issuances and initial public offerings

Answer 25

investment banks/companies

Question 26

what does ipo means

Answer 26

initial public offerings

Question 27

this financial institution extend financing to companies that need funds for their business. they are not banks and are not regulated by the central bank

Answer 27

leasing companies

Question 28

this financial institution perform similar functions as banks in the manner that they can provide financing to companies or raise funds through bonds or ipo. they are regulated by the securities and exchange commission or sec

Answer 28

investment companies

Question 29

this financial institution are types of investments or funds of small investors pooled together and managed to able to generate maximum returns.

Answer 29

mutual funds

Question 30

this financial institution sell life and non-life insurance products that offer security during times of death, illness, accident and damage to property.

Answer 30

insurance companies

Question 31

this financial institution are managed by private fund managers or investors, allowing owners to invest more aggressively in the financial markets.

Answer 31

private equity funds

Question 32

it is a blank business if the business achieve the financial soundness blah balah

Answer 32

WORTHWHILE BSUINESS

Question 33

it is someone that ensure that the entire cash flow happens and is completed jp to interses payments on the borrowed loan after monEY IS INVENTED

Answer 33

WORTHWHILE BUSINESS

Question 34

it is issued by the government, it has maturity within a year, and it is not risky since the government

Answer 34

treasury bills

Question 35

it is issued by financially sound business to fund investment in inventories and receivables, has a maturity for nine months and generally low default risk as business has good credit standing

Answer 35

commercial papers