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2-22. BA-FM 24P(2018)-A (LEC) Banking and Financial Institution > Chapter 5: Insurance Companies and Securities Firms and Investment Banks > Flashcards

Chapter 5: Insurance Companies and Securities Firms and Investment Banks Flashcards

1
Q

In life insurance premiums, they guarantee that the insurer pays a sum of money to your
beneficiaries such as cousins, nephews, and niece.

A

Insurance Company

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2
Q

_______________ is a way to protect yourself from financial risks by paying a company a small amount of money, called a _____________

A

Insurance; Premium

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3
Q

WHY IS INSURANCE IMPORTANT?

A
  • Provides a safety-net for people
  • Financial security
  • Peace of mind
  • Provides economic growth
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4
Q

Examples of Insurance Companies

A
  • Sun Life of Canada (Philippines) Inc.
  • Manu life Health Insurance
  • Pru Life Insurance
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5
Q

Securities firms, also known as _______________

A

brokerage firms or investment firms

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6
Q

facilitate the buying and selling of f inancial securities on behalf of investors.

A

Securities Firms

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7
Q

play a vital role in financial markets, providing access, liquidity, advice, and innovation essential for investors and businesses.

A

Securities Firms

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8
Q

serve as essential intermediaries for various stakeholders in navigating financial markets and achieving their investment objectives.

A

Securities Firms

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9
Q

facilitate trading, provide investment advice, raise capital, manage assets, conduct research, ensure compliance, and serve client needs.

A

Securities Firms

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10
Q

TYPES OF SECURITIES FIRM

A
  • Full-Service Brokerage
  • Discount Brokerage
  • Robo-Advisors
  • Independent Brokerage
  • Captive Brokerage
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10
Q

It provides a variety of goods and services, such as financial consultation, tax advice, estate planning, and money management.

A

Full-Service Brokerage

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11
Q

Full-Service Brokerage also known as.

A

traditional brokerages

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12
Q

It is a type of brokerage firm that offers trading services to clients at a lower cost compared to traditional brokerages firm.

A

Discount Brokerage

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13
Q

It is an online financial service that automates the process of implementing trading strategies for its clients by using algorithms

A

Robo-Advisors

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14
Q

It is a type of brokerage firm that operates independently.

A

Independent Brokerage

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15
Q

It is controlled or owned by an insurance company.

A

Captive Brokerage

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16
Q

Helping businesses raise funds through stock and bond issuance.

A

Capital Formation

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17
Q

Offering diverse investment options for investors.

A

Investment Opportunities

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18
Q

Providing platforms and services for buying and selling securities.

A

Trading Facilitation

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19
Q

Ensuring liquidity by quoting prices and facilitating transactions.

A

Market Making

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20
Q

Providing insights and advice to investors.

A

Research and Analysis

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21
Q

Offering hedging strategies and risk management solutions.

A

Risk Management

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22
Q

Ensuring adherence to regulations and protecting investors.

A

Regulatory Compliance

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23
Q

examples of Securities Firms

A
  • RCBC Securities, Inc.
  • BDO Securities Corporation
  • First Metro Securities
  • Col Financial
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24
Q

is a financial institution that provides a variety of services, mostly to governments, corporations, and institutional investors.

A

Investment bank

25
Q

These services usually consist of asset management, securities trading, mergers and acquisitions (M&A) advisory, and capital raising.

A

Investment bank

26
Q

serve as a middleman between businesses in need of capital and investors looking for places to put their money to work.

A

Investment bank

27
Q

play a crucial role in the financial system by acting as intermediaries between those who need capital and those who have capital to invest.

A

Investment bank

28
Q

Investment banks act as bridges between companies seeking capital and potential investors

A

Capital Raising

29
Q

Their expertise includes valuation of both entities, negotiation of deal terms, and ensuring compliance with legal and regulatory requirements.

A

Mergers & Acquisitions Advisory (M&A)

30
Q

Investment banks offer a wealth of financial expertise to their clients.

A

Financial Advisory

31
Q

is a highly skilled professional who operates within the financial sector, serving as a key intermediary in complex financial transactions.

A

Investment Banker

32
Q

They connect companies or governments with potential investors, structuring deals that benefit both parties.

A

Deal maker

33
Q

They leverage their financial expertise to analyze a company’s finances, identify opportunities and risks, and recommend strategic financial decision.

A

Strategic Advisory

34
Q

In the event of your death, what kind of insurance protects your family financially?

A

Life Insurance

35
Q

What kind of business offers insurance plans to assume risks in exchange for premium payments?

A

Insurance Companies

36
Q

Private insurance firms are owned by

A

Shareholders

37
Q

A company owned by a group of policyholders is known as

A

Mutual Company

38
Q

Certain costs related to illness, injury, pregnancy, or preventative care are covered by this contract.

A

Health Insurance

39
Q

Coverage for liability in times of accidents on the property is one of the benefits of what kind of insurance?

A

Home Insurance/ homeowners insurance

40
Q

True or False

Home insurance premiums covers unexpected damages including floods and earthquakes

A

False

41
Q

True or False

In life insurance premiums, they guarantee that the insurer pays a sum of money to your beneficiaries such as cousins, nephews and niece

A

False

42
Q

True or False

Auto insurance premiums does not cover the payment of your vehicle if vandalized or get damaged by a natural disaster

A

False

43
Q

True or False

Insurance is an organization that designs policies to assume risks in exchange for premium payments

A

True

44
Q

True or False

It gives you financial security against unforeseen costs as well as protection against sickness, accidents, and other events.

A

True

45
Q

True or False

It is not possible for an insurance company to experience bankruptcy due to its sufficient funds.

A

False

46
Q

The minimum deposit required in First Metro Securities?

A

1,000

47
Q

True or False

Discount Brokerage offers trading services to clients at a higher cost.

A

False

48
Q

True or False

Securities Firm is a financial institution that provides a variety of services, mostly to governments, corporations, and institutional investors.

A

False

49
Q

True or False

Independent Brokerage is not associated with an insurance company.

A

True

50
Q

True or False

Investment Opportunities offers diverse investment options for investors.

A

True

51
Q

True or False

Securities firms facilitate the buying and selling of financial securities on behalf of investors.

A

True

52
Q

True or False

When a certain security is to be bought or sold, the broker will find a match to its offer, if there is no match, then the client will hold it until the broker finds a match

A

True

53
Q

A core service of investment banks where they offer a wealth of financial expertise to
their clients.

A

Financial Advisory

54
Q

True or False

Investment banks offer a wealth of financial expertise to their clients.

A

True

55
Q

True or False

Investment banks serve as intermediaries between users of capital and providers of capital

A

True

56
Q

True or False

An investment banker acts as a middleman between a corporation needing funds and investors with funds.

A

True

57
Q

True or False

When a company first goes public, a registration statement must be filled with the New York Stock Exchange.

A

False

58
Q

True or False

Deal maker is when they leverage their financial expertise to analyze a company’s finances, identify opportunities and risks, and recommend strategic financial decisions.

A

False

59
Q

What is it called when securities firms facilitate transactions and maintain a balanced supply and demand for securities to ensure smooth and orderly trading?

A

Market making

2-22. BA-FM 24P(2018)-A (LEC) Banking and Financial Institution (9 decks)

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