Chapter 1 Flashcards

1
Q

refers to the whole gamut of market dealings with financial assets

A

Financial system

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2
Q

it is where the lenders and borrowers of funds meet to finance their needs and satisfy their objectives.

A

Financial System

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3
Q

the lenders can be

A

individuals
businesses
institutions
government

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4
Q

the borrowers can be

A

individuals
businesses
institutions
government

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5
Q

when the lenders and borrowers meet, the lenders transform their fudns into

A

financial assets

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6
Q

the borrowers receive the funds as their?

A

financial liabilities

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7
Q

like any other commodity, has a price.

A

Money

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8
Q

brings together the borrowers and lenders of funds

A

intermediation process

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9
Q

is the most common form of financial intermediation in the financial system

A

Banking system

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10
Q

type of financial markets

A

Money market
Capital Market

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11
Q

types of institutions

A

banking institution
non-bank financial intermediaries
non-bank thrift institutions

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12
Q

components of banking institutions

A

universal banks
commercial banks
thrift banks
rural banks
specialized government banks

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13
Q

Components of non-bank financial intermediaries

A

investment houses
financing companies
securities dealers/ brokers
investment companies
insurance companies
lending investors
pawnshops
Government non- bank financial institutions
venture capital corporations

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14
Q

non-bank thrift institutions

A

mutual building & loan associations
non stock savings & loans

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15
Q

is responsible for implementing the monetary policy and regulation of the banking system.

A

Bangko sentral ng pilipinas

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16
Q

supervises the operations of the insurance companies

A

insurance commission

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17
Q

works with the bsp and IC in supervising and regulating the activities of the financial institutions in the country

A

Securities and exchange commission

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18
Q

are expanded commercial bans capitalized at 5 billion or more

A

Universal Banks

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19
Q

Are banks with a minimum capitalization of 2.8 billion

A

Commercial Banks

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20
Q

Are banks with a minimum capitalization of 325 million for those whose head office is within metro manila, and php 25 million otherwise.

A

Thrift or savings bank

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21
Q

are normally operatign in the sector with minimum capitalization of 3.2 million. but those in metro manila needs minimum capitalization of 32 million

A

Rural Banks

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22
Q

Are government owned and controlled corporations engaged in specialized lending

A

Specialized government banks

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23
Q

are involved in underwriting of securities, financial consultancy

A

Investment houses

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24
Q

lend to business firms and individuals using equity capital and long-term borrowed funds

A

financing companies

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25
Q

sell its own securities to the public and invest the proceeds in stocks and bonds

A

Investment Companies

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26
Q

are engaged in property -liability, life insurance.

A

Insurance Companies

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27
Q

are involved in the buying and selling of securities and have a minimum capital of php 30 million

A

Securities Dealers

28
Q

cater to the financial requirements of smaller firms

A

lending investors

29
Q

provide immediate cash relief to the individual customers but charge higher rates than most banks

A

Pawnshops

30
Q

are companies catering to a niche market.

A

mutual building and loan associations and no-stock and loans associations

31
Q

the financial system can now be subdivided into 4 major markets

A

Money market
capital Market
Foreign exchange market
derivatives market

32
Q

is a segment of the financial market with dealings in short term maturities of financial contracts

A

Money market

33
Q

most money market are

A

fixed income debt instrumetns

34
Q

is a segment of the financial market with dealings in maturities beyond 1 year.

A

Capital Market

35
Q

types of capital market

A

primary
secondary

36
Q

The form of financial instruments in the capital market can be
classified as

A

debt
equity

37
Q

refers to the issuance of new securities representing an actual transfer of funds

A

Primary markets

38
Q

Primary markets refers to the issuance of new securities
representing an actual transfer of funds from the investor to the issuing entity commonly called

A

Initial Public Offering

39
Q

refers to the trading of securities providing a liquidity mechanism

A

Secondary Market

40
Q

the secondary market can be

A

Organized Market
Over the counter maret

41
Q

is a financial obligation that
has to be repaid with interest.

A

Debt

42
Q

is a form of ownership in an enterprise and does not have to be repaid.

A

Equity

43
Q

are debts of private corporations which carry interest repayments

A

Commercial Papers

44
Q

has an inferior claim to a financial asset of debts, preferred shares among otehrs

A

equity ownership

45
Q

refers to the market dealing in a foreign currencies’.

A

Foreign exchange market

46
Q

is an organized secondary market where the buying and selling clients of the bankers association of the Philippines meet and where transactions are mapped or recorded.

A

Philippine dealing system

47
Q

includes all financial contracts deriving its value from any other underlying assets

A

Derivatives marekt

48
Q

example of underlying assets

A

security prices
commodity prices
interest rates
foreign exchange rates

49
Q

basic classes of derivatives maret

A

futures
options
swaps
forward rate contracts

50
Q

are securities issued by the bureau of treasury with maturities.

A

Government bonds

51
Q

the exchange of assets in the financial system is consummated in

A

specialized financial market

52
Q

4 major markets

A

money market
foreign exchange market
capital market
derivatives market

53
Q

where most of the trading is done

A

Philippine dealing system

54
Q

It is the segment of the financial
market with dealings in maturities beyond one year.

A

Capital Market

55
Q

It is an organized secondary where
the buying and selling clients of Bankers Association of the
Philippines meet and where transactions are mapped or
recorded.

A

Philippine dealing system

56
Q

provide a risk management tool
in the financial system.

A

Derivatives

57
Q

first bank in the philippines

A

Bank of the Philippine Islands

58
Q

a charity foundation by laymen used for charity works and religious activities. It became a banking institutions run by the friars.

A

Obras pias

59
Q

One of the first banks to emerge in the 19th century. It was more of a loan association than a modern bank.

A

Rodriguez bank

60
Q

it was the first state bank.

A

Banco Espanol-Filipinas De Isabel II

61
Q

First universal bank in the philippines

A

Philippine national Bank

62
Q

when did bsp actually started out as the central bank of the philppines

A

January 3 1949

63
Q

a segment of the financial market with dealings in short term maturities of financial contracts.

A

Money Market

64
Q

segment of the financial market with dealings in maturities beyond 1 year.

A

Capital Market

65
Q

is where short-term funds are raised through the buying and selling of short term debt securities such as commercial papers.

A

Money Market

66
Q

is where long-term funds are raised through the bond market, which deals with long-term debt securities such as bonds, the stock market which deals with equity securities or stocks.

A

Capital Market

67
Q
A