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Credit And Collection > Chapter 4 > Flashcards

Chapter 4 Flashcards

1
Q

Classsification of credit according to purpose

A

Agricultural Credit
Commercial Credit
Industrial Credit
Consumer Credit
Commodity loans

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2
Q

These are loans to be used in the cultivation and improvement of farmlands, or in the production of agricultural products

A

Agricultural Credit

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3
Q

Common types of agricultural loans

A

Time loan
Crop loan
commodity or quedan loans

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4
Q

This is usually a secured loan (collaterized by the farm property where the loans funds are to be used

A

Time loan

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5
Q

It finances the production of crops like rice and corn, cassava, tomatoes, and cabbage

A

Crop loan

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6
Q

This is the loan to finance the marketing of harvested crops

A

Commodity or quedan loans

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7
Q

This type of loan is also used for non-farm commodities by wholesalers or manufacturers

A

Commodity loans

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8
Q

These are loan or credit agreements for the purpose of financing the production and marketing of commodities

A

Commercial credit

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9
Q

these could be loans granted by banks to businesse or by business establishments to other business

A

commercial credit

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10
Q

are loans used to finance the construction of favtory buildings or the purchase of machinery and equipment

A

industrial credit

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11
Q

these are loan funds granted to individuals by banks, coops, department stores, credit card companies, and many more

A

consumer credit

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12
Q

the loan funds are used to purchase personal items like tx refs, cosmetics, clothes or pay education and medical expenses

A

consumer credit

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13
Q

for non farm. products, using warehouse receipts

A

commodity loans

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14
Q

Commodities or goods are either

A

finished product or raw materials

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15
Q

credit could also be classified according to maturity

A

short term
medium term
long term

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16
Q

loans are either be

A

secured or unsecured

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17
Q

it refers to a real or personal property used as collateral, usually required by the lender

A

security

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18
Q

also called as character or clean loans and signature loans

A

unsecured loans

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19
Q

a promissory note with only one signature is called

A

single-name paper

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20
Q

promissory note taht have two signatures

A

multi-name paper

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21
Q

the biggest sources of credit

A

financial institutions

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22
Q

financial institutions are either be

A

intermediaries and non intermediaries

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23
Q

is a go between, the one in the middle

A

intermediary

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24
Q

the true sources of credit are

A

individuals
businesses
some government entities

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25
Q

financial intermediaries provide the ff

A

pool funds
diversification
managerial competence
match short term and long term
continuing stream of earnings
transactions are handled efficiently

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26
Q

types of securities

A

stocks
bonds
treasury bills
loans

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27
Q

types of financial intermediaries

A

banks
insurance companies
pre-need companies
pension or retirement funds
investment house
financing companies
credit cooperatives

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28
Q

types of banks

A

commercial
savings bank
rural banks

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29
Q

is licensed by the bangko sentral and is authorized to accept deposits from the public

A

bank

30
Q

it is in the buy and sell business

A

banks

31
Q

is another bank created by law to. improve the philippine countryside, particularly the agricultural sector

A

rural banks

32
Q

the major activity of insurance companies is

A

cash accumulation

33
Q

it operates under the same cash accumulation but this one stress the major concerns of people, their childrens future and old age

A

pre need companies

34
Q

include in thir products term life insurance that will. pay the planholders beneficiary in case of death and credit insurance

A

pre need companies

35
Q

it collects employees contributions, mostly mandatory and on a monthly basis, from employees paychecks

A

pension funds

36
Q

is the channeling of private funds from various individuals and businesses for investment, as capital stock, in public corporations

A

investment house

37
Q

sells shares of stock to public

A

public corporation

38
Q

issues or sells new shares of stock to the public in exchange for cash

A

issuing corporation

39
Q

it would either a start up or newly established venture, or an existing corporation in need of funds

A

issuing corporation

40
Q

also acts as financial consultants, investment advisers and brokers, and they design pension and retirement programs among other things

A

investment house

41
Q

corporations or partnerships which are primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial

A

financing companies

42
Q

it channels the contribution of its members into loans, mostly for farm inputs like fertilizers and farm chemicals

A

credit cooperatives

43
Q

non financial sources of credit

A

appliance companies
pawnshops.
lending investors
employers
department stores

44
Q

it is the seller of the merchandise and also the lender

A

self financing

45
Q

the primary document used in pawshop

A

pledge

46
Q

the borrower called the and who signs document called

A

pledgor and pledgee

47
Q

terms uses in the 1st provider which is the suppliers pr raw materials and finished goods

A

suppliers credit
mercantile credit

48
Q

terms used in commercial bank

A

lines of credit
revolving credit agreements
letters of credit and trust receipts
packing credit advances

49
Q

terms used in the large corporations

A

commercial paper

50
Q

terms used in the finance companies

A

pledge of accounts receivables
favctoring

51
Q

terms used in individuals and corporation finance companies

A

treasury bills
repurchase

52
Q

terms used in the long term

A

treasury bonds
corporate bonds
investment credit
bonds
equipment leaseback

53
Q

in the buy and sell business this is the biggest source of credit

A

suppliers

54
Q

this is an agreement between a commercial bank and a business specifying the amount of short term credit the bank will make available on a non guaranteed basis

A

line of credit

55
Q

banks have limits and some limits are

A

single borrower limit
reserve requirements

56
Q

in this arrangements, the buyers get the goods they want to purchase and the wholesaler simply records the total amount in their books or ledger without requiring the buyer to sign any document

A

open book credit

57
Q

it is guaranteed by bank

A

revolving credit agreement

58
Q

is issued by bank which guarantees payment to the beneficiary or payee of the LC

A

letter of credit

59
Q

is a mode of payment that is required by a seller of goods mostly in import or export business

A

letter of credit

60
Q

this is credit granted by bank to an exporter to finance the manufacturing of export goods

A

packing credit advances

61
Q

is a short term unsecured debt of the government

A

treasury bills

62
Q

2 reasons why government issue tbills

A

as economic measure to regulate the economy
as a means to raise funds for short term government expenditures

63
Q

this is a loan collaterized by accounts receivable

A

pledging of AR

64
Q

very rare source of credit

A

factoring

65
Q

similar to a t bills and it is an unsecured short term certificate of debt

A

commercial paper

66
Q

these are unsecured long term debts of the governmeny

A

treasury bonds

67
Q

significances between t bill and t bonds

A

maturity
usage
how buyers make money

68
Q

this is a certificate indicating that a corporation has borroweda certain amount of money and promise to pay it in the future under clear terms and conditions

A

corporate bonds

69
Q

these are long term loans or bonds that finance the construction of favtory buildings, commercial warehouse, hotels

A

investment credit

70
Q

in this transaction, the owner of the equipment, to generate cash usually sells it to the finance company and the owner would simply lease it back

A

equipment leaseback

Credit And Collection (7 decks)

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