CONCEPT OF BANKING

Question 1

Refers to any business entity that accepts and safeguards the finances of other persons and organizations and lends the finances to carry out economic activities such as making profits.

Answer 1

Banking

Question 2

Provides crucial services for both businesses and consumers, such as offering car loans, offering checking accounts, home loans, among other services.

Answer 2

Banking

Question 3

Significances of banking in our day to day life include(3):

Answer 3

• Provision of credit opportunities for corporations and individuals.
• Facilitates the flow of funds in the economy.
• Ensures financial resource is efficiently allocated towards economic growth and development.

Question 4

Refers to a collection of a network of institutions that provides financial services to the people.

Answer 4

Banking System

Question 5

The following are some of the institutions that belong to the banking system(6):

Answer 5

• central banks
• commercial banks/universal banks,
• investment banks
• savings and loan associations
• insurance companies
• credit unions.

Question 6

Functions of banking systems(7):

Answer 6

• Accepting of deposits and withdrawals
• Lending of funds
• Offering loans
• Offering checking accounts,
• Remittance of funds
• Offering credit and debit cards
• Bill payment services and safe deposits.

Question 7

REPUBLIC ACT NO. 8791

Answer 7

General Banking Law of 2000:
AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES

Question 8

• A financial institution which deals with deposits.
• It receives money from those who want to save in the form of deposits and it lends it to those who need it.
• May be defined as an institution that accepts deposits, makes loans, pays checks and provides financial services.
• A financial intermediary for the safeguarding, transferring, exchanging, or lending of money.
• A primary role is connecting those with funds, such as investors and depositors, to those seeking funds, such as individuals or businesses needing loans.
• A connection between customers that have capital deficits and customers with capital surpluses.

Answer 8

Bank

Question 9

• The system that allows money to go between savers and borrowers.
• Is like the heart of the human beings, if its stops working then the person is dead in the same way that if this stops working, then the economy would collapse
• There will always be those who have surplus resources and others will have deficit. This is crucial for the allocation of these resources.
• It is also composed of offshore banking units, building and loan associations, investment and brokerage houses and financial companies.

Answer 9

Financial System

Question 10

ELEMENTS OF FINANCIAL SYSTEMS(6)

Organizations that offers financial services.

Answer 10

Financial Institutions

Question 11

ELEMENTS OF FINANCIAL SYSTEMS(6)

The system that allows people to buy and sell goods and services to each other.

Answer 11

Financial Market

Question 12

ELEMENTS OF FINANCIAL SYSTEMS(6)

these are assets belonging to a person or company. This can include cash, bonds, or other assets: such as property or items of value.

Answer 12

Financial Instruments

Question 13

ELEMENTS OF FINANCIAL SYSTEMS(6)

These are offered by financial institutions. These include such things as banking, insurance policies, loans and mortgages, as well as pensions.

Answer 13

Financial Services

Question 14

ELEMENTS OF FINANCIAL SYSTEMS(6)

A sort of guideline around how the financial institutions should operate their services.

Answer 14

Financial Guidelines

Question 15

ELEMENTS OF FINANCIAL SYSTEMS(6)

These are the actual exchange of assets for goods or services-paying for a new car, or loan, for insurance.

Answer 15

Financial Transactions