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2ND SEM-MIDTERM > FIN > Flashcards

FIN Flashcards

1
Q

True or False:Money, credit and banking affect the lives of people

A

TRUE

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2
Q

True or False: Money may improve or ruin financially an individual, a business or a nation

A

True

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3
Q

True or false: Money may seriously affect families,
education of children is sacrificed
or a happy marriage may reel under the great pressure of breaking up

A

True

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4
Q

It is used as a medium of exchange

A

Money

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5
Q

Holder of money is said to have the power to purchase.

A

True

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6
Q

True or false: Money must be managed properly, one must have sufficient knowledge about the nature and characteristics

A

True

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7
Q

the rate of increase in prices over a given period of time

A

Inflation

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8
Q

It refers to “the inevitable ups and downs of economic activity, as measure by periods of economic growth and and contraction”

A

Business cycles

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9
Q

It has become a great influencer in the development of economies.

A

✓Credit

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10
Q

—–when properly used, it can help nations, businesses, and even individuals engage in wealth-enhancing activities.

A

credit

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11
Q

It serves as intermediaries between the providers of funds and those which require them.

A

Banking

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12
Q

a person who acts as a link between people in order to try to bring about an agreement or reconciliation;

A

a mediator.

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13
Q

The activities of —- has immediate effects on the operations of business.

A

bank

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14
Q

When —- is reduced, businesses are forced to reduce their output.

A

lending

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15
Q

branch of economics concerned with resource allocation as well as resource management, acquisition, and investment.

A

Finance

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16
Q

A broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments.

A

Finance

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17
Q

It represents money management and the process of acquiring needed funds.

A

Finance

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18
Q

What are the areas of finance

A

Investment
Public finance
Financial Markets
Corporate finance
Personal finance

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19
Q

the study of the investment process. It refers to the commitment of funds to one or more assets will be held over some future time period. Perhaps the most common are stocks, bonds, real estate, and ETFs/mutual funds.

A

Investment

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20
Q

deals with taxation, bond issues, budgeting, asset management, and financial planning activities of the government.

A

Public finance

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21
Q

include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. It facilitate the interaction between those who need capital with those who have capital to invest.

A

Financial Markets

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22
Q

deals with the proper acquisition of cash and the efficient allocation of that cash within the corporation.

A

Corporate finance

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23
Q

is an area of finance that deals with the proper management of an individual’s money to achieve personal economic satisfaction

A

Personal finance

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24
Q

Major components of Finance

A
  1. Microfinance -
  2. Macrofinance
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25
Q

that part which deals with the study of the decision making process within the firm.

A
  1. Microfinance -
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26
Q
  • that part which deals with the environment that effects corporate financial decisions.
A
  1. Macrofinance
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27
Q

Currency Used : barter system, no currency. What period?

A

pre-Spanish period 1st phase

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28
Q

seashells

A

pre-Spanish period 2nd phase

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29
Q

Currency Used
gold wax, cotton, small shells, dye wood, carabao horns;
metal bells and silver wires

A

pre-Spanish period 3rd phase

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30
Q

currencies of Mexico, Peru, Bolivia Chile, Argentina and other Latin
American countries

A

1810 onwards

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31
Q

piloncito, a conical gold coin
with an embossed inscription

A

Pre-hispanic era

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32
Q

Penniform Gold Barter Ring

A

between 8th & 14th centuries

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33
Q

Europian silver coins

A

introduced by Magellan i n 1521

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34
Q

silver coins from the mints of Mexico & other latin American countries

A

brought by the galleon trade from
Mexico in1565

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35
Q

Spanish barilla(first coin minted in the Philippines)

A

1729 onwards

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36
Q

Spain’s eight-real coins circulated throughout the world including
the Philippines

A

1732 to 1771

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37
Q

Pre-hispanic:

A

barter rings & piloncitos

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38
Q

Spanish Era (1521-1897):

A

Cobs or macuquinas & dos mundos

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39
Q

Revolutionary period (1898-1899):

A

two centavo copper coin & revolutionary notes

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40
Q

Philippine Republic:

A

present money

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41
Q
  1. It was difficult to look for that person who has the things you need and who also wants the things you are offering for exchange.
A

reason why the society abandoned the barter system

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42
Q
  1. There is no common denominator to measure the value of goods and services sought for exchange.
A

reason why the society abandoned the barter system

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43
Q
  1. Most of the goods traded have unequal values.
A

reason why the society abandoned the barter system

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44
Q
  1. It is time consuming, cumbersome and very inconvenient for individuals to use the barter
    systems.
A

reason why the society abandoned the barter system

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45
Q
  1. It lacks generalized purchasing power.
A

reason why the society abandoned the barter system

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46
Q

He defines money as “anything used to make a payment, for a good, a service, or a debt obligation.”

A

Thomas F. Cargill:

47
Q

He defines money as “any generally accepted means of payment that will be taken in exchange for goods and services.”

A

Kohn:

48
Q

He defines money as “anything that is generally accepted in payment for goods or services or in repayment of debts.”

A

Mishkin:

49
Q

They defines money in two aspects:
“Broadly defined, money is a liquid store of value.
Narrowly defined, money is generally acceptable medium of exchange.”

A

Kidwell and Peterson

50
Q

THREE GENERAL FUNCTIONS OF MONEY

A
  1. money serves as a unit of account
  2. money serves as a medium of exchange
  3. money serves as store of wealth
51
Q

Measurement of value goods and services
Standard unit for stating price
Basis for comparing market prices of goods, services, and resources.

A

money serves as a unit of account

52
Q

Enables people to transfer purchasing power from the present to the future
In order to buy things later, people store some of their wealth as money.
The money you place in your safe or checking account will be available to you in few weeks, months, or years from now.
Other means of storing wealth with art, jewellery, and stocks.

A

. money serves as a medium of exchange

53
Q

Fundamentals use of paying goods and services in market economy.
It is readily acceptable as payment
Money allows society to escape from the complications of barter.

A
  1. money serves as store of wealth
54
Q

refers to paper currency decreed by a government as legal tender but not convertible into coins or precious metal.

A

Fiat Money:

55
Q

It gets its status as a medium of exchange because the government declared it an
official means of payment.

A

Fiat Money

56
Q

is a government-issued legal tender not backed by a physical commodity like gold. It has an unlimited quantity, and its value is based on the general public’s trust in its government.

A

Fiat Money

57
Q

The fiat definition comes from a Latin word that can be translated to

A

“let it be done” or “it shall be.”

58
Q

only has value because the government gives it value and, therefore, it
has more control over the currency and how much can be printed.

A
  • Fiat money
59
Q

Money that is backed by a promise to pay.

A

. Credit Money

60
Q

is the creation of monetary value through the establishment of future claims, obligations, or debts.

A

Credit money

61
Q

True or False: There are many different forms of credit. Common examples include car loans, mortgages, personal loans, and lines of credit.

A

true

62
Q

True or false: when the bank or other financial institution makes a loan, it “credits” money to the borrower, who must pay it back at a future date.

A

true

63
Q

money whose value comes from a commodity of which it is made.

A

Commodity Money

64
Q

True or false: Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods.

A

True

65
Q

—– money whose value comes from a commodity of which it is made.

A

Commodity money

66
Q

It consists of objects having value or use in themselves as well as their value in buying goods.

A

Commodity money

67
Q

A form of money used by those who make transactions through the internet.

A

Electronic checks

68
Q

An — is a payment method that contains the same information as a paper check (i.e., checking account number, bank routing number, and payment amount), only the entirety of the transaction is managed digitally.

A

eCheck

69
Q

The — is written by the seller via the internet. The seller sends the check to his bank which effects the transfer of money from the buyer’s account to the seller’s account, if the check is found valid.

A

electronic check

70
Q

What are the characteristics of Good Money

A
  1. Divisibility:
  2. Portability:
  3. Durability:
  4. Stability:
  5. Difficult to Counterfeit
  6. General Acceptability:
71
Q

money can be issued in various denominations to facilitate the exchange process.

A
  1. Divisibility:
72
Q

Money that is portable like paper currency and metal coins became popular throughout the world because they can be carried in large quantities.

A
  1. Portability:
73
Q

retain its original state overtime.

A
  1. Durability:
74
Q

Of all the qualities of good money, blank-is probably the most essential one.

A
  1. Stability:
75
Q

Money must be blank so that people will not lose confidence and stop using it as currency.

A
  1. Difficult to Counterfeit
76
Q

An important quality of money is its acceptance.

A
  1. General Acceptability:
77
Q

Good money requires acceptance to all without any hesitation. Since the law declares Money as the legal tender, it has an inherent quality of blank

A

General Acceptability:

78
Q
  • good money should be acceptable to everybody in a
    specific territory. It refers to the willingness of people to accept the money in exchange for goods and services.
A

General Acceptability:

79
Q
  • The value of money cannot change for a long period of time and hence remain stable.
A

stability

80
Q
  • If the value of money keeps changing, then it will fail to function as a measure of value and as a standard of deferred payment.
A

stability

81
Q

to make something look like the original of something else, usually for dishonest or illegal purposes.

A

: Counterfeit -

82
Q

Blank is undertaken by persons who want to benefit from the high exchange value of paper currency.

A
  • Counterfeiting
83
Q

True or flase: In order to be considered durable, a good must be difficult to damage or alter.

A

true

84
Q

Blank is a necessary property of money because the money must be able to sustain its value over time.

A
  • Durability
85
Q
  • It can be easily and economically transported from one place to the other.
A

portability

86
Q

● The blank is the sum total of all of the currency and other liquid assets in a country’s economy on the date measured. It includes all cash in circulation and all bank deposits that the account holder can easily convert to cash.

A

money supply

87
Q

True or false: Variations of the money supply number take into account non-cash items like credit and loans.

A

true

88
Q

Money Supply indicator

A

M1: Narrow Money
M2: Broad Money
M3: Broad Money Liabilities
M4: Liquidity Money

89
Q

It is the base measurement of the money supply and includes cash in the hands of the public, both bills and coins, plus peso demand deposits, tourists’ checks from non-bank issuers, and other checkable deposits.

A

M1: Narrow Money

90
Q

True or False: M1 includes currency in circulation.

A

True

91
Q

broader set of financial assets held principally by households.

A

M2: broad money

92
Q

● This contains all of M1 plus peso saving deposits (money market deposit accounts), time deposits and balances in retail money market mutual funds.

A

M2: broad money

93
Q

M2 plus money substitutes such as promissory notes and commercial papers.

A

M3: Broad Money Liabilities

94
Q

● These include M3 plus transferable deposits, treasury bills and deposits held in
foreign currency deposits.

A

M4: Liquidity Money

95
Q

● Almost all short-term, highly liquid assets will be included in this measure

A

M4: Liquidity Money

96
Q

cash or checkable deposits.

A

M1:NARROW MONEY

97
Q

Notes and coins

A

M1

98
Q

Notes, coins, traveler’s checks, and demand deposits

A

M2

99
Q

Examples: Notes, coins, traveler’s checks, demand deposits, savings deposits, and money market deposit

A

M3

100
Q

Security Features of Philippine Money

A

TILT
FEEL
LOOK

101
Q

Security thread
Concealed Value
Optical variable ink; 1000 & 500 piso only
Optical Variable Device Patch (1000)
Enhanced Value Panel: 1000 & 500 piso only

A

TILT

102
Q

Security paper
Embossed Prints
Tactile Marks

A

FEEL

103
Q

Watermark
Security fiber
Asymetric Serial number
See-through mark

A

LOOK

104
Q

: FEEL the smooth surface. The banknote is one continuous sheet with transparent areas

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Polymer Substrate

105
Q

TILT the note from left to right, and vice versa, to see the rolling-bar effect.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Enhanced Value Panel

106
Q

LOOK through the small transparent window depicting the Sampaguita (Jasminum sambac). FEEL the transparent embossed line structures with the text “BSP” inside the flower on the front face of the note.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Sampaguita Clear Window

107
Q

LOOK for two (2) identical serial numbers composed of 2 prefix letters and 7 asymmetric (increasing in size) digits.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Serial Numbers:

108
Q

FEEL the five highly embossed dots intended to assist the elderly and the visually impaired

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Tactile Dots

109
Q

FEEL the raised ink that is rough to the touch. Front: Philippine Eagle portrait, “REPUBLIKA NG PILIPINAS”, signatures, and the amount in words Back: Philippine map, South Sea Pearl, “Tubbataha Reefs Natural Park,” T’nalak weave design, denomination, and the amount in words

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Embossed Prints

110
Q

LOOK for the 5-mm vertical band on either side of the note when viewed against the light. The denominational value and “BSP” text appear in repeated series.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Shadow Thread

111
Q

LOOK through the large transparent vertical window containing multiple security features.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Vertical Clear Window

112
Q

LOOK at the details of metallic images and symbols in the vertical clear window. TILT the note to see color changes and dynamic motion. Dynamic Waves. Wavy lines on the front face of the note move when it is tilted back and forth. Republic of the Philippines (RP) Seal and Mirrored Denomination. Both show moving vertical-line effects when the note is tilted back and forth. Bangko Sentral ng Pilipinas (BSP) Logo and 3D Denomination. On the front, the BSP logo and 3D denomination outline display a striking rainbow effect when the note is tilted at different angles. On the back, only the BSP logo is visible.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Metallic Features:

113
Q

TILT and LOOK to see the figure that displays varying tones of blue when the note is viewed at different angles.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Blue Iridescent Figure

114
Q

FEEL the transparent embossed outline of a stylized flying eagle.

A

THE 1000-PISO POLYMER BANKNOTE Security Features: Flying Eagle:

2ND SEM-MIDTERM (9 decks)

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