Chapter 6

Question 1

private non-bank financial institutions

Answer 1

• investment houses
• investment banks
• financing companies
• securities dealers/brokers
• savings and loan association
• mutual funds
• pawnshops
• lending investors
• pension funds
• insurance companies
• credit union

Question 2

government banking institiutions

Answer 2

• development bank of the philippines
• land bank of the philippines
• philippine al amanah islamic investment bank

Question 3

accumulating the saving of depositor and investing them, together with its capital, for personal or household finances whether secured or unsecured and financing for home building and home development

Answer 3

stock savings and mortgage bank

Question 4

govt non-bank financial institutions

Answer 4

• GSIS
• SSS
• Pag-ibig

Question 5

protects depositors by providing deposit insurance coverage for the depositing public and help promote financial stability.

Answer 5

Philippine Deposit Insurance Commission (PDIC)

Question 6

they engage in underwriting in which they guarantee a price to a firm issuing stocks or bonds and then make profit by selling the stocks or bonds at higher price

Answer 6

investment banks

Question 7

include savings and mortgage banks, stock savings, and loan association and private development banks. they accumulate funds for personal or household finance (whether secured or unsecured), or in financing for home building and home development

Answer 7

thrift banks

Question 8

provide loans for developmental purposes, gives loans to the agricultural sector, commercial sector, and the industrial sector

Answer 8

Development Bank of the Philippines

Question 9

Take savings in the form of annual premiums, then invest these funds in stocks, bonds, real estate, and mortgages, and finally make payments to the beneficiaries of the insured parties. In recent years, life insurance companies have also offered a variety of tax-deferred savings plans designed to provide benefits to the participants when they retire.

Answer 9

Insurance Companies

Question 10

confined only to commercial bank functions

Answer 10

commercial bank/domestic bank

Question 11

Refer to persons or entities engaged in the business of lending money with personal property, jewelry, and other durable goods as collateral for the loans given.

Answer 11

Pawnshops

Question 12

established to assist various cooperatives by lending those funds at reasonable interest rates

Answer 12

cooperative banks

Question 13

to promulgate and implement policies, rules and regulations governing the operations of entities engaged in insurance and pre-need activities.

Answer 13

Insurance Commission (IC)

Question 14

is the agency of the Government of the Philippines responsible for regulating the securities industry in the Philippines.

Answer 14

Securities and Exchange Commission (SEC) -

Question 15

Accepts money from savers and then use these funds to buy stocks, long-term bonds, or short term debt instruments issued by businesses or government units.

Answer 15

mutual funds

Question 16

traditionally served individual savers and residential and commercial mortgage borrowers, accumulate the funds of many small savers and then lend this money to home buyers and other types of borrowers.

Answer 16

Savings and Loan Associations

Question 17

Provides housing loans to both government and private employees.

Answer 17

Pag-ibig

Question 18

RA 6048. authorizes the bank to promote and accelerate the socio-economic development of the ARMM by performing banking, financing and investment operations

Answer 18

Al-Amanah Islamic Investment Bank

Question 19

any person/entity engaged in the business of buying and selling securities for his own or its client’s account thereby making a profit from the difference between purchase price and selling price

Answer 19

securities dealer

Question 20

government bank, which provides financial support in the implementation of the agrarian reform program (ARP) of the government

Answer 20

Land Bank of the Philippines

Question 21

Are cooperative associations whose members have a common bond, such as being employees of the same firm. Members’ savings are loaned only to other members, generally for auto purchases, home improvement loans, and even home mortgages. Credit unions often are the cheapest source of funds available to individual borrowers.

Answer 21

Credit Unions

Question 22

regulatory landscape

Answer 22

-Alignment with global standards
-Deepening Capital Markets
-Strengthening surveillance

Question 23

the central bank of the Philippines.

Answer 23

Banko Sentral ng Pilipinas (BSP)

Question 24

Is any person or entity engaged in the business of effecting securities transactions, giving loans and earns interest from them.

Answer 24

Lending Investor

Question 25

authorized by the central bank to accept deposits and make credit available to farmers, businessmen, and cottage industries in the rural areas.

Answer 25

rural bank

Question 26

exercises all the powers and assumes all the obligations of the savings and mortgage as provided by the general banking act (RA 4093). helps construct, expand, and rehabilitate agricultural and industrial sectorq

Answer 26

private development bank

Question 27

its primary purpose is to extend credit facilities to consumers and to industrial, commercial, or agricultural entities (by discounting or factoring commercial papers, etc)

Answer 27

financing company

Question 28

Provides retirement benefits, housing loans, personal loans, emergency and calamity loans to government employees.

Answer 28

Government Service Insurance System

Question 29

how do mutual funds reduce risk?

Answer 29

diversification

Question 30

CURRENT RISK IN THE PHILIPPINE FINANCIAL SYSTEM

Answer 30

-Repricing, refinancing, and repayment risk
-Developments in the credit market
-Continuous demand for credit by corporate enterprises and households is evident in the domestic economy

Question 31

they provide advice to firms issuing stocks and bonds or considering mergers with other firms.

Answer 31

investment banks

Question 32

Provides retirement benefits, funeral benefits, housing loans, personal loans and calamity loans to employees who are working in private companies and others.

Answer 32

Social Security System

Question 33

engages in underwriting securities of other corporations. it generate income from sale of investments in securities

Answer 33

investment house

Question 34

private banking institutions

Answer 34

• expanded commercial bank/universal bank
• commercial bank
• thrift banks (stock savings and mortgage bank, private development bank, stock savings and loan associations)
• rural banks
• cooperative banks

Question 35

engaged in the business of accumulating the savings of its members or stockholders. primarily engaged in servicing the needs of households by providing personal finance and long term financing for home building and development

Answer 35

stock savings and loan association (SLA)

Question 36

performs the investment house function in addition to its commercial banking authority. it may be invested in the equities of allied and non-allied enterprises. allied enterprises may either be financial or non-financial

Answer 36

universal banks/expanded commercial banks

Question 37

Are retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments of commercial banks or by life insurance companies. Pension funds invest primarily in bonds, stocks, mortgages, and real estate.

Answer 37

Pension Funds