Exam Prelim

Question 1

Market refers to original sale of securities

Answer 1

Primary Market

Question 2

Securities issued by national government, maturity less than 1 year

Answer 2

Treasury Bills

Question 3

Unsecured short term instrument used by corporations

Answer 3

Commerical Paper

Question 4

Network of corporations, financial institutions…. Deals with the flow of short term capital

Answer 4

Money Market

Question 5

Number of years(term) until instrument expiration

Answer 5

Maturity

Question 6

Independent central monetary authorityof the country

Answer 6

BSP

Question 7

Pamilihang Sapi ng Pinas

Answer 7

PSE

Question 8

Cannot be withdrawn before a set of date

Answer 8

Time Deposit

Question 9

No voting rights, less volatile

Answer 9

Preffered stock

Question 10

Price which securities are bought and sold on recognized stock exchange

Answer 10

Official Quotation

Question 11

PSE policy ensure both will have the same price

Answer 11

One Price One Market

Question 12

Organized secondary market-securities and shares are purchased

Answer 12

Stock Exchange

Question 13

This stock exchange has physical location

Answer 13

Organize Stock Exchange

Question 14

This stock exchange trades shares using systems of computers

Answer 14

Over the counter exchange

Question 15

A numerical representation of group of stock that is used to track their collective performance

Answer 15

Stock Index

Question 16

CHANNEL FUNDS from sectors that have a SURPLUS to sectors that have a SHORTAGE of fund

Answer 16

Financial System

Question 17

remain as major financial service access point in the country particularly in providing liquidity to borrowers

Answer 17

Pawnshop and MSB,

Question 18

is used to describe the in person and digital spaces in which various entities trade different types of FINANCIALINSTRUMENTS

Answer 18

Capital Market

Question 19

is effectively a monetary contract (real or virtual), which confers a right or claim against some counterparty in the form of a payme

Answer 19

FINANCIAL INSTRUMENTS

Question 20

they are the meeting place for people, corporations, and institutions that either need money or have money to lend or invest.

Answer 20

FINANCIAL MARKET

Question 21

are members of the recognized stock exchange who buys, sells, deals the securities.

Answer 21

STOCK BROKERS

Question 22

Agents of Investor

Answer 22

Brokers

Question 23

The agreement between the firm issuing and the bondholder

Answer 23

Indenture

Question 24

Ratio of the annual payment to the bond markets price

Answer 24

Current Yield

Question 25

Bonds internal rate of return, discount rate that equates the present value

Answer 25

Yield to Maturity

Question 26

Face value of the bond that is returned to thr bond holder at maturity

Answer 26

Par value

Question 27

% of par value that will be paid out annually form of interest

Answer 27

Coupon Interest rate

Question 28

Length of time until the bond issuer return the par value to the bondholder

Answer 28

Maturity

Question 29

Firm or group of firms that purchase bonds directly from a bond issuer

Answer 29

Underwriter

Question 30

2 set of cash flow bonds

Answer 30

Periodic interest payment
The principal return at maturity

Question 31

Users of bonds

Answer 31

Government
Corporations

Question 32

Users of money market

Answer 32

Investors, company and government

Question 33

Major financial institutions of ph financial system structure

Answer 33

Bangko Sentral ng Pilipinas
Banking Institution
Non Banking Institution

Question 34

Financial markets do

Answer 34

Raising capital
Price Settin
Investing
Risk management