TEST 1-2 Flashcards
Financial institutions that ACT AS A BRIDGE between investors and borrowers.
FINANCIAL INTERMEDIARIES
The BIGGEST depository institutions.
COMMERCIAL BANK
Relation between a BANK AND A DEPOSITOR.
DIRECT FINANCE
Relation between the BANK AND DEPOSITORS AND BANK OWNERS.
INDIRECT FINANCE
It refers to the agencies where people and some SMALL BUSINESSES “pawn” their assets as collateral in exchange of amount much smaller than the value of asset.
PAWNSHOP
It is special type of insurance that provides COVERAGE COVER and above once’s AUTOMOBILE HOMEOWNER’s policy.
UMBRELLA LIABILITY POLICY
Its a type of insurance that covers the cast of an insured fund’s MEDICAL AND SURGICAL EXPENSE during an illness.
HEALTH INSURANCE
It refer to financial institutions that ACCESS DEPOSITS FROM SURPLUS UNIT.
DEPOSITORY INSTITUTIONS
These are pension funds, life insurance companies, mutual funds, and FINANACE COMPANIES LIKE DEPOSITORY institutions which PERFORM FINANCIAL ENTERMEDIATION.
NON-DEPOSITORY INSTITUTIONS
Its rating aims to determine bank’s OVERALL CONDITION and IDENTITY ITS STRENGTH AND WEAKNESSES financially, operationally and managerially.
CAMELS
Depositors are deficit units.
FALSE
Corporations that issue stocks and bonds are surplus unit.
FALSE
A direct security or primary security flows directly from the investing unit to the delicit unit.
TRUE
Commercial banks are the more popular type of banks is the rural communities.
FALSE
There are two basic classifications of financial intennediarres these are depository and non depository institutions.
TRUE
