Financial Markets

Question 1

depicts collectively the financial markets, the instruments and securities that are traded in the said markets, as well as the participants.

Answer 1

Financial System

Question 2

described as a group that receives income, majority of which typically come form their salaries and wages.

Answer 2

Households

Question 3

markets in which users of funds raise funds by using financial instruments or the corporations raise funds through new issues of securities.

Answer 3

Primary Market

Question 4

markets where financial instruments are traded among investors and that trade financial instruments once they are issued

Answer 4

Secondary Market

Question 5

channel the funds from lenders to borrowers.

Answer 5

Financial Institutions/Intermediaries

Question 6

ventures and businesses that involves processes and industries like trading, manufacturing, construction, extractive, and genetic industries.

Answer 6

Non-Financial Institutions

Question 7

this is what comprises the Philippines as a whole, from the national level, provincial, city and towns

Answer 7

Government

Question 8

institution that control a nation’s currency, supply of money, and the rates of the interest

Answer 8

Bangko Sentral ng Pilipinas

Question 9

refer to the members from the rest of the world.

Answer 9

Foreign participants

Question 10

structures through which funds flow.

Answer 10

Financial Markets

Question 11

the market for long-term securities and is managed by the Philippine Stocks Exchange (PSE).

Answer 11

Capital Market

Question 12

the fundamental ownership claim in a public corporation

Answer 12

Corporate stocks

Question 13

loans of individuals or businesses to purchase a home, land or other real properties.

Answer 13

Mortgages

Question 14

Long-term bonds issued by corporations

Answer 14

corporate bonds

Question 15

long-term bonds issued by the Philippine’s Bureau of Treasury

Answer 15

treasury bonds

Question 16

long-term bonds issued by state and local governments

Answer 16

state and local government bonds

Question 17

loans to commercial banks and individuals

Answer 17

bank and consumer loans

Question 18

a market for foreign currencies

Answer 18

foreign exchange market

Question 19

a market for short-term and usually occurs between banks and other financial institutions where they lend each other on overnight basis or where the treasury bill is exchanged

Answer 19

money market

Question 20

short-term obligation by the Philippine government

Answer 20

treasury bills

Question 21

short-term funds transferred between financial institutions usually for no more than one day

Answer 21

federal/state funds

Question 22

agreements involving the sale of securities by one party to another with a promise by the seller to repurchase the same securities from the buyer at a specified date and price

Answer 22

Repurchase agreements

Question 23

short-term unsecured promissory notes issued by a company to raise short-term cash

Answer 23

commercial paper

Question 24

bank issued time deposit that specifies an interest rate and maturity date and is negotiable.

Answer 24

negotiable certificate of deposit

Question 25

time draft payable to a seller of goods, with payment guaranteed by a bank

Answer 25

banker’s acceptance

Question 26

market for commodities such as oil, gold and silver

Answer 26

commodities market

Question 27

it is a market of financial contracts derived from the capital and usually depends on the price of the asset where it is derived

Answer 27

derivatives market