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2ND SEM-FINALS > FINFINALS - CREDIT > Flashcards

FINFINALS - CREDIT Flashcards

1
Q

______ the power or ability to obtain money, goods and services at the present time in exchange for a promise to pay with money upon demand or at a determinable time.

A

CREDIT

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2
Q

______: Rooted on trust in an individual. It is ability of a person to obtain goods or services under a promise future

A

CREDIT

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3
Q

______Represents the borrower’s ability to obtain goods/services or money in exchange of a future promise to pay.

A

Borrower’s Viewpoint

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4
Q

_____Credit is the trust & confidence of the lender on the borrower’s ability and willingness to pay.

A

Lender’s Viewpoint

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5
Q

What types of credit viewpoints where credit is the exchange of actual reality against the future probability

A

Economist’s Viewpoint

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6
Q

What types of credit viewpoints where credit creates a legal right in favor of the creditor against the debtor who is under obligations to pay.

A

Legalistic viewpoint

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7
Q

ENUMERATE THE FUNCTIONS OF CREDIT

A
  1. Credit used as substitute for money
  2. Easy exchange and remittance
  3. Helpful in production
  4. Promotion of trade especially foreign trade.
  5. Expansion of bank credit
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8
Q

ENUMERATETHE 5 C’S OF CREDIT

A
  1. character
  2. capacity
  3. capital
  4. collateral
  5. conditions
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9
Q

A characteristics of credit where a meeting of minds between at least two persons or parties who agree on terms of the transaction; the creditor who lends out his money or property and the debtor who receives and promises to pay the said obligation at some future time.

A
  1. Credit as a Bipartite Contract
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10
Q

A characteristics of credit where it is always expressed in terms of money.

A

Credit as a Pecuniary Contract

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11
Q

A characteristics of credit where credit has always been based on trust and confidence

A

Credit as Fiduciary Contract

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12
Q

A characteristics of credit where there is always the possibility of the obligation not being paid.

A

In credit, risk is always involved

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13
Q

A characteristics of credit where payment on credit is always done at a future date.

A

Credit is always involves futurity

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14
Q

WHAT ARE THE KINDS OF CREDIT

A

1.Consumer credit
2.Trade credit
3.Bank credit
4.Investment credit
5.Agricultural credit
6.Export credit
7. Public credit

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15
Q

What kind of credit where It refers to credit given by shops, banks and other financial institutions to consumers so that they can buy goods.

A

Consumer credit

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16
Q

WHAT ARE THE Kinds of Consumer Credit

A
  1. Charge Account:
  2. Installment Credit:
  3. Personal loan
  4. Revolving Charge
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17
Q

A type of consuemr credit where an arrangement in which a bank, store, etc., allows a customer to buy things with a credit card and pay for them later

A

Charge Account:

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18
Q

It is a type of consumer credit where it is an arrangement where the customer buys goods by paying a sum regularly each month

A

Installment Credit:

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19
Q

A type of consumer credit where an account is an arrangement where, someone can purchase goods on credit at any time to an agreed amount, and continue to purchase on credit while still paying off the original, credit grant.

A

Revolving charge

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20
Q

What kind of credit where it is a loan to a person for household or other personal use, not for business use.

A

Personal loan

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21
Q

A kind of credit where it is a business-to-business (B2B) agreement in which a customer can purchase goods without paying cash up front, and paying the supplier at a later scheduled date. Usually, businesses that operate with trade credits will give buyers 30, 60, or 90 days to pay, with the transaction recorded through an invoice.

A

Trade credit

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22
Q

What kind of credit where it refers to all types of lending granted by the banks to others or to one another.
the total amount of funds a person or business can from a financial institution. Credit approval is determined by a borrower’s credit rating, income, collateral, assets, and pre-existing debt. Bank credit may be secured or unsecured.

A

Bank credit:

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23
Q

WHAT ARE THE Type of loans availed by borrowers from banks are:

A
  • Commercial loans
  • Real estate loans
  • Agricultural loans
  • Industrial loans
  • Salary loans
  • Automotive loans
  • Deposits collateral loans
  • Interbank call loans
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24
Q

Types of loans usually refer to the loans which are issued by banks to real estate development and operating enterprises or the loans issued by land reserve organizations for real estate development and operating activities.

A

Real estate loans:

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25
Q

Types of loans it refers to loans used to finance the production and marketing of agricultural products. (farmers ang usually ng file) This includes lending of funds for the purchase of farm equipment and machinery, fertilizers, pesticides, seedlings, fingerling and others .

A

Agricultural loans:

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26
Q

Types of loan made to a business or corporation.

A

Commercial & Industrial loans:

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27
Q

Types of loan which provides companies with funds that can be used for various purposes, including working capital or to finance capital expenditures such as purchasing.

A

Commercial and industrial loans

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28
Q

Types of loan which is a short-term loan based on the monthly wages of an employee. It is the best option for people who are short on cash and need urgent loans to cover unforeseen bills before their paycheck is credited.

A

Salary loans

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29
Q

A type of loan that allows you to borrow money from a lender and use that money to purchase a car. You’ll have to repay the loan in fixed installments over a set period, and interest will be charged on the money you borrow

A

Automotive loans

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30
Q

Types of loan that is secured loan where
you pledge an asset such as a car or your property as collateral to be able to take out a loan.

A

Deposits collateral loans

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31
Q

Types of loan between banking institutions, with terms ranging from overnight to one week. are facilitated to cover liquidity requirements set by a regulatory agency. In instances where a bank has a shortage of liquid assets, it borrows from other banks whose liquid assets are in excess than that required.

A

Interbank call loans:

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32
Q

WHAT ARE THE OTHER SOURCES OF CREDIT

A

*Retail stores
*Credit Unions
*Individual Money Lenders
*Insurance Companies
*Sales of finance companies

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33
Q

_______– are the most common sources of credit

A

BANKS

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34
Q

Banks are classified as:

A
  1. Commercial banks
  2. Thrift banks
  3. Rural banks
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35
Q

Type of bank specializes in giving commercial loans to
businessmen.

A

Commercial banks

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36
Q

Type of bank in the saving and mortgage bank. It is organized for the purpose of encouraging thriftiness among the people.

A

Thrift banks

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37
Q

Type of banks that are organized to cater to the needs of farmers and small businessmen in the rural areas including the cottage
industries.

A

Rural banks

38
Q

List of ______ : BPI, Citibank Phils. Equitable bank, Far East Bank & Trust Co.LBP, Metrobank.

A

Commercial Banks

39
Q

List of _____: Allied savings bank, Equicom Savings Bank, Inc. BPI Family
savings bank, Citibank Savings bank

A

Thrift banks

40
Q

_____is the sale of goods and services consumers, in contrast to wholesaling, which is sale to business or institutional customers.

A

Retail stores

41
Q

A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to
consumers for a profit.

A

Retail stores

42
Q

Types of Retail Stores:

A
  1. Department Stores:
  2. Discount Stores:
  3. Warehouse Store:
  4. Supermarkets
  5. Specialty Stores:
  6. Convenience Stores:
  7. Shopping Malls:
  8. E-commerce Stores:
43
Q

Types of retail stores that give the option to the customers that buy the products sitting at home.

A

E-commerce Stores:

44
Q

Types of retail stores that are non- physical stores & affecting the retail industry if you don’t get any product offline then you will get it online for sure. You can order the product & make the payment sitting at home only. The price is very less as compared to any other retail store.

A

Ecommerce Stores

45
Q

______These are cooperatives organizations that lend savings of their members to other members who are in need.

A

Credit Unions:

46
Q

_______: is a person or group who typically offers small personal loans at high rates of interest.

A

Individual Money Lenders OR MONEY LENDERS

47
Q

_______are financial intermediaries which offer direct insurance or reinsurance services, providing financial protection from possible hazards in the future.

A

Insurance Companies OR Insurance corporations

48
Q

________ is an organization that makes loans to individuals and businesses. Unlike a bank, THIS company does not receive cash deposits from clients, nor does it provide some other services common to banks, such as checking accounts.

A

Sales of Finance Companies OR finance company

49
Q

Types of retail stores or a market place where many retail stores are operating & selling their own products. there might be shops in the mall which sell various kind of products & brands.

A

Shopping Malls

50
Q

Types of retail stores that is extremely popular in every country. They sell products which are less & high in terms of rates.

A

Shopping Mall

51
Q

Types of retail stores that are found in every big & small country. They typically sell the products at higher rates as they have fewer customers.

A

Convenience Stores:

52
Q

Types of retail stores that you can find in your locality & they sell the basic products, they don’t keep much of the product category. They keep 2- 3 types of products & that too in a very less quantity.

A

Convenience Stores:

53
Q

Indian Kirana stores, 7/11, ALFAMART are the best example of this type.

A

Convenience Stores:

54
Q

Lazada, Shein, Shoppee, Tiktok are the best examples

A

Ecommerce

55
Q

Mall of Asia, SM Clark, Marquee are the ebst example

A

Shopping Mall

56
Q

The retail stores where you get the product from the special brand & they don’t sell anything apart from that brand or specialize category.

A

Specialty Stores

57
Q

Types of retail stores that focus on a higher level of customer satisfaction.

A

Specialty stores

58
Q

Nike & Adidas are the best example of such stores.

A

Specialty stores

59
Q

Are retail stores where a wide range of category products are available. Most of those products are of household items such as food, daily need products, groceries & baby products.

A

Supermarkets

60
Q

SM hypermarkets, rustan’s, robinson supermarket are example of

A

Supermarkets

61
Q

A type of retail store where people can buy products in large quantities & that too in discounted rates. In such stores, items can be from various brands & may be from store owners as well.

A

Warehouse Store

62
Q

Tractor Company, office warehouse, the sports warehouse have such kind of stores.

A

Warehouse Store

63
Q

These stores are very much similar to the department store’s only difference is all the products you can buy at discounted rates.

A

Discount Stores

64
Q

In _____products may or may not be manufactured by the discount store owners.

A

discount store

65
Q

Wal-Mart and daiso are the best example of discount stores.

A

discount store

66
Q

A store where end users can buy different products under one roof, the products are arranged as per the category.

A

Department Stores

67
Q

In ________ customers always get the various options for a single product, which can fulfill the needs of the customers.

A

Department Stores

68
Q

metro department store and SM DEPARTMENT STORE are examples of?

A

Department Stores

69
Q

WHAT ARE THE USER OF USERS OF CREDIT:

A
  1. CONSUMERS
  2. BUSINESS
  3. GOVERNMENT
70
Q

______: Household consumption is oftentimes made possible by purchases of goods and services on credit.

A

CONSUMERS

71
Q

What are he following examples of goods brought on credit by consumers:

A

-house and lot
- educational services
-motor vehicle
- travel
-household appliances
-wedding expenses
-clothing
-jewelry.

72
Q

____are users of credit in large and small amounts.

A

Businesses

73
Q

Businesses avail credit to finance the following:

A
  1. Payroll
  2. Purchase of merchandise
  3. Construction of building and facilities
  4. Purchase of equipment
  5. Refinancing of maturity debts
74
Q

______is one big institution that uses credit in big amounts.

A

GOVERNMENT

75
Q

______is a common function of all working economies.

A

Debt

76
Q

____ exist by borrowing to fund the various activities that are necessary including public education, roads, hospitals and other projects.

A

Governments

77
Q

WHAR ARE THE FIVE C’S OF CREDIT

A
  1. CHARACTER
  2. CAPACITY
  3. CAPITAL
  4. COLLATERAL
  5. CONDITIONS
78
Q

TRUE OR FALSE: The five C’s of credit is a system used by lenders to gauge the creditworthiness of potential borrowers.

A

TRUE

79
Q

TRUE OR FALSE: The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender.

A

TRUE

80
Q

_____: A person’s____ is the sum of his mental and moral qualities. It refer’s to borrower’s reputation or track record for repaying debts. Sometimes called ______.

A

CHARACTER, character
- credit history

81
Q

______: Signifies the ability of a debtor to pay his obligation.

A

Capacity

82
Q

______includes the ability of a company or management to make good commitment.

A

Capacity

83
Q

_______: Is the financial strength of a business. The company must have a healthy capital structure.

A

CAPITAL

84
Q

______: Are properties of value pledged to secure a loan. This includes financial and other resources such as bank deposits, inventories, receivables and other assets that the company can pledge for loans.

A

COLLATERAL

85
Q

______ are loans secured by movable personal properties.

A

CHATTEL MORTGAGES

85
Q

_____are loans secured by fixed assets

A

REAL ESTATE

85
Q

_____: refers to the environment in the customer’s industry; economically, legally and politically in relation to growth.

A

CONDITIONS

85
Q

______: is a type of medium or long-term loan (i.e. with a term of 2 to 20 years).

A

Investment credit

86
Q

________: is special credit advanced to farmers, agricultural producers, and others to finance agricultural transactions.

A

Agricultural credit

87
Q

______ agency offers trade finance and other services to facilitate domestic companies’ international exports

A

Export credit:

88
Q

____is issued by the public government, public organisations, and central banks.

A

Public credit

2ND SEM-FINALS (8 decks)

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