The Philippine Financial System Flashcards
True or false. One of the functions of the Universal bank is they are depositories of funds and sources of credit
False. Commercial bank
True or false. Commercial bank accepts drafts or bills of exchange, issues letter of credit, discounting and negotiating promissory notes, drafts, and bills of exchange and other evidences of debt
True
True or false. Deposit substitute refers to a form of obtaining funds from public, other than deposits, through the issuance, endorsement, or acceptance of debt instruments for the purpose of relending or purchase of other receivables and obligations
True
True or false. Commercial bank invests in debt and equity instruments denominated in foreign currency and other activities that may be necessary or incidental to carry on the business of commercial banking
True
True or false, The function of commercial bank is also the function of the universal bank
true
True or false. Commercial bank engage in the activities of an investment house or bank such as underwriting, securities dealership and equity investment and to invest in other industries other than those allied to the banking industry
false. Universal bank
True or false. Financial markets refer broadly to any marketplace where the trading of securities occurs.
True
True or false. Financial market includes stock market, bond market, forex market, and derivatives market, among others.
True
True or false. The functions of financial markets are price determination, funds mobilization, liquidity, risk sharing, easy access, reduction in transaction costs, and the capital formation
true
True or false. It is when the financial market performs the function of price discovery of the different financial instruments which are traded between the instruments which are traded between the buyers and the sellers on the financial market is the price determination or price setting
true
True or false. It is when the funds available from the lenders or the investors of the funds will get allocated among the persons who are in need of funds is called funds globalization
false. funds mobilization
True or false. Risk sharing provides an opportunity for the investors to sell their financial instruments at its fair value prevailing in the market at any time during the working hours of the market
false. liquidity
True or false. Risk sharing is when the derivatives transfer part of the contract to the party accepting the instrument.
True
True or false. In financial markets, industries require the investors for raising the funds and the investors require the industries for investing its money and earning the returns from them which is called easy access
True
True or false. It is when the financial markets provide the channel through which the new savings of the investors flow in the country which aid in the capital formation of the country is capital formation
true
