MT IDENTIFICATION

Question 1

Important component of financial market.

Serves as proof of transaction.

Used to facilitate the provision of fund for a certain economic undertaking.

It can be considered as a legal contract or endangered specifying the amount of transaction.

Answer 1

FINANCIAL INSTRUMENT

Question 2

Refers to an asset or property that a borrower pledges a security for a loan or credit facility.

Answer 2

Collateral

Question 3

Fixed interest rate that the issue pays to bond holder over the life of the bond.

Answer 3

Coupon rate

Question 4

Refers to the ease with which an asset, security or investment can be both or sold in the market without causing significant changes in its price.

Answer 4

MARKETABILITY

Question 5

Reflect the degree to which an asset can be quickly converted into cash at or near its fair market value.

Answer 5

MARKETABILITY

Question 6

These financial instrument represent ownership interest in an entity.

Answer 6

Ownership claims

Question 7

The financial instrument represent a contractual obligation and the part of a issuer to repay borrowed fund to the holder of instrument.

Answer 7

Debt claims

Question 8

Financial instrument with id stable marketability

The common maturity period consists of 91 days 182 days and 364 days.

Used to finance the budget deficits of the national government.

Redeemed by the issue at the set amount at maturity date.

There is no interest payment however, interest is effectively pay because they are initial dissolved

Answer 8

Treasury bills

Question 9

A short term promissory notes issued by a large establish business firm with a strong credit ratings.

It usually issued on 60 days 90 days 180 days basis.

Carriers higher yield also reflect higher risk and reduce liquidity

Maturity maybe tailored

Answer 9

Commercial paper

Question 10

Can be converted into common shares of specified time and price in the future.

Answer 10

Convertible share

Question 11

Refers to the ability to obtain a thing or value in a exchange for a promise to pay with money or something equally satisfactory to the seller at the some future time.

Answer 11

Credit

Question 12

Staggered mode in a grid span of time and an agreed amount.

Answer 12

Installment

Question 13

Is the instrument used by the government to stabilize the economy.

Refers to the set of actions and strategies implemented by a country’s central bank to manage and control the money supply and interest rates within a company.

Answer 13

Monetary policy

Question 14

The primary objective is to maintain price stability conducted to a balance and sustainable economic growth.

Answer 14

Bangko Sentral ng Pilipinas

Question 15

Refers to a condition of low and stable inflation.

Answer 15

Price stability

Question 16

The price at which one currency is exchange with another

Answer 16

Exchange rate

Question 17

Refer to the international financial position of a country.

It is a bookkeeping for recording of all payments that have a direct daring on the movements of fun between the nation and a foreign countries.

Answer 17

Balance of payment

Question 18

Promote stable growth in the international trade

Answer 18

International monetary fund

Question 19

Maybe describe as a rental price of money usually expressed in annual percentage in nominal amount money borrowed.

Serves as a basis for comparing the returns offers by various financial.

Answer 19

Interest

Question 20

Is a form of computing interest on annual basis.

Answer 20

Simple interest

Question 21

This term refer to the average return on a debt security if kept until maturity.

Provided by the interest payment as well as capital gain or loss.

Answer 21

Yield to maturity

Question 22

Refers to the promise annual interest payment from a bond divided by the market value on the bond

Answer 22

Current yield

Question 23

These are the bonds which carry no interest but which are issued at a deep discount which provides capital gains when they are redeemed at face value.

Answer 23

Zero coupon bond