UNIT II: The Philippine Financial System

Question 1

OBRAS PIAS is translated as? and was founded in?

Answer 1

pious works; 1594

Question 2

EXPLAIN OBRAS PIAS

Answer 2

a fund that was donated for charitable and pious projects managed by religious confraternities or friars

it was used to LOAN TO TRADERS

Question 3

the OBRAS PIAS ended in _____ and it became the ___________ of a banking insti in the PH

Answer 3

1820; forerunner

Question 4

organized by Governor Jose y Vargas in 1781, it helped transform the PH into a self-sufficient economy that became fin independent from Mexico

Answer 4

ECONOMIC SOCIETY OF FRIENDS OF THE COUNTRY

Question 5

___________________ happened when King Ferdinand VII abolished the monopoly of galleon trade and the privileges of the Royal Company of the PH

Answer 5

TRADE LIBERALIZATION

Question 6

what was the FIRST FILIPINO BANK?

Answer 6

Rodriguez Bank

Question 7

who formed the FIRST FILIPINO BANK and WHEN DID HE FORM IT?

Answer 7

RODRIGUEZ BANK; 1830

Question 8

the RODRIGUEZ BANK was called a bank, but it was more of a _________________

Answer 8

LOAN ASSOCIATION

Question 9

what is the FIRST GOVERNMENT BANK in the PH?

Answer 9

Banco Espanol-Filipino de Isabel II

Question 10

who established the FIRST GOVERNMENT BANK in the PH? and when?

Answer 10

Governor Antonio de Urbiztondo y Eguia in 1851

Question 11

first bank in SOUTHEAST ASIA?

Answer 11

Banco Espanol-Filipino de Isabel II

Question 12

bank that is currently known as BPI?

Answer 12

Banco Espanol-Filipino de Isabel II

Question 13

what is the first SAVINGS BANK?

Answer 13

Monte de Piedad y Caja de Ahorros de Manila also know as Monte de Piedad Savings Bank

Question 14

the first savings bank (Monte de Piedad Savings Bank) was established in _____ by ______?

Answer 14

1882; Felix Huertas

Question 15

was considered as the “big bank for the small people”

Answer 15

PHILIPPINE NATIONAL BANK (PNB)

Question 16

the assets and liabilities of the
First Agricultural Bank of the Philippine Government were transferred to this bank

Answer 16

PHILIPPINE NATIONAL BANK (PNB)

Question 17

on July 18 1980, the first universal bank in the PH was inaugurated which is?

Answer 17

PHILIPPINE NATIONAL BANK (PNB)

Question 18

on January 03 1949, this bank was inaugurated by Miguel Cuadero Sr. serving as its first governoe

Answer 18

CENTRAL BANK OF THE PHILIPPINES

Question 19

who was the first governor of the CENTRAL BANK OF THE PHILIPPINES?

Answer 19

Miguel Cuadero Sr.

Question 20

network of various institutions which generates and controls money and credit

Answer 20

FINANCIAL SYSTEM

Question 21

composed of “all financial institutions, financial markets and instruments, legal and regulatory environment, and financial norms and behavior”

Answer 21

FINANCIAL SYSTEM

Question 22

money and rights to receive money under specific circumstances

Answer 22

FINANCIAL CLAIMS

Question 23

evidenced by financial instruments that specify the terms of the claims

Answer 23

FINANCIAL CLAIMS

Question 24

two types of claims????

Answer 24

DEBTS and EQUITIES

Question 25

comprise private and public organizations whose assets consist of claims or incomes primarily derived from dealing in and/or performing services in connection with claims

Answer 25

FINANCIAL INSTITUTIONS

Question 26

transform assets of lender-savers into financial instruments such as loans, mutual funds, and pension funds

Answer 26

FINANCIAL INSTITUTIONS

Question 27

firms that provide financial services to consumers, businesses, and government units

Answer 27

FINANCIAL INSTITUTIONS

Question 28

TYPES OF FINANCIAL INSITUTIONS

Answer 28

1. private banking institutions 2. gov't banking institutions 3. private non-bank financial institutions 4. govt non-bank financial institutions 5. informal institutions

Question 29

means of bringing the forces of demand and supply of financial claims

Answer 29

FINANCIAL MARKETS

Question 30

perform the essential economic function of channeling from households, firms, and government

Answer 30

FINANCIAL MARKETS

Question 31

FINANCIAL MARKETS spending less than their income results to?

Answer 31

SURPLUS FUNDS

Question 32

FINANCIAL MARKETS spend or intend to consume or invest more than their means

Answer 32

SHORTAGE OR DEFICIT OF FUNDS

Question 33

FINANCIAL MARKETS examples

Answer 33

debt and equity markets, primary and secondary markets, money and capital markets (i.e., Philippine Stock Exchange or PSE), futures market, options market, foreign exchange markets, domestic and international markets

Question 34

composed of government agencies that supervise and/or regulate financial institutions and markets based on existing laws and policies

Answer 34

SUPERVISORY AND REGULATORY AGENCIES

Question 35

supervise the operations of financial institutions, exercise regular powers over them,

Answer 35

SUPERVISORY AND REGULATORY AGENCIES

Question 36

evaluate the fin insti's compliance to requirements, rules, guidelines, and restrictions in the conduct of their business,

Answer 36

SUPERVISORY AND REGULATORY AGENCIES

Question 37

build transparency and maintain the integrity of the financial system

Answer 37

SUPERVISORY AND REGULATORY AGENCIES

Question 38

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM provides policy directions in the areas of money, banking and credit

Answer 38

BANGKO SENTRAL NG PILIPINAS (BSP)

Question 39

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM supervises operations of banks and exercises regulatory powers over non-bank fin institutions with quasi-banking functions

Answer 39

BANGKO SENTRAL NG PILIPINAS (BSP)

Question 40

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM the national government regulatory agency charged with supervision over the corporate sector, the capital market participants, and the securities and investment instruments market, and the protection of the investing public.

Answer 40

SECURITIES AND EXCHANGE COMISSION

Question 41

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM tasked to regulate the sale and registration of securities, exchanges, brokers, dealers and salesmen.

Answer 41

SECURITIES AND EXCHANGE COMMISSION (SEC)

Question 42

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM mandated to regulate and supervise the insurance, pre-need, and HMO industries in accordance with the provisions of the Insurance Code,

Answer 42

INSURANCE COMMISSION (IC)

Question 43

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM promotes the viability and growth of cooperatives as instruments of equity, social justice and sustainable economic development,

Answer 43

COOPERATIVE DEVELOPMENT AUTHORITY (CDA)

Question 44

SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM central policy-making and regulatory body mandated to safeguard the State’s ownership rights and ensure that the operations of GOCCs are transparent and responsive to the needs of the public.

Answer 44

GOVERNANCE COMISSION FOR GOCCS (GCG)

Question 45

implemented to ensure price stability, strong financial system, and economic growth

Answer 45

LAWS AND POLICIES

Question 46

OBJECTIVES OF THE FINANCIAL SYSTEM (6)

Answer 46

1. provide intermediation 2. provide loans 3. stimulate social and economic development 4. reduce strong dependence on foreign fund 5. encourage the transformation of savings into investments 6. assure that all types of clients have access to fin services

Question 47

FINANCIAL INSTITUTIONS may be generally classified as??

Answer 47

1. banking or depository institutions 2. non-bank financial institutions (NBFI's)`

Question 48

FINANCIAL INSITUTIONS BANKING OR DEPOSITORY INSTITUTIONS may be classified according to?

Answer 48

1. ownership (private or public) 2. place of incorporation (domestic or foreign) 3. structure (stock or non-stock) 4. management (unit bank, group banking, branch banking, or chain banking)

Question 49

FINANCIAL INSTITUSIONS 1. private banking institutions 2. gov't banking institutions 3. private non-bank financial institutions 4. govt non-bank financial institutions 5. informal institutions which are BANKING OR DEPOSITORY INSTITUTIONS?

Answer 49

1 and 2!!!

Question 50

FINANCIAL INSTITUSIONS 1. private banking institutions 2. gov't banking institutions 3. private non-bank financial institutions 4. govt non-bank financial institutions 5. informal institutions which are NON-BANK FINANCIAL INSTITUTIONS?

Answer 50

3 to 5!!!

Question 51

TYPE OF FINANCIAL CLAIM a type of financial claim that does not convey ownership rights

Answer 51

DEBT

Question 52

TYPE OF FINANCIAL CLAIM conveys ownership rights

Answer 52

EQUITY

Question 53

OTHER FINANCIAL SERVICES

Answer 53

advice automated teller machine (ATM) electronic payment system (EPS) local and international remittance telephone banking electronic, mobile, and internet banking online shopping/payment

Question 54

TYPES OF SAVINGS ACCOUNT

Answer 54

1. deposit or transactional savings account 2. money market account 3. certificate of deposit

Question 55

TYPES OF SAVINGS ACCOUNT earn interest, small minimum deposit, highest liquidity, can be transferred to a checking account or used for payment services, comes with an ATM Card

Answer 55

DEPOSIT AND TRANSACTIONAL SAVINGS ACCOUNT

Question 56

TYPES OF SAVINGS ACCOUNT larger initial deposit and charges fees if the minimum balance is not maintained, higher interest rate than deposit savings account

Answer 56

MONEY MARKET ACCOUNT

Question 57

TYPES OF SAVINGS ACCOUNT lowest liquidity, highest interest rate, depositor selects the duration, term, or maturity of the deposit; reinvestment for interest to compound

Answer 57

CERTIFICATE OF DEPOSIT

Question 58

GENERAL CLASSIFICATION OF INSURANCE

Answer 58

1. life insurance 2. non-life insurance

Question 59

TYPES OF INSURANCE

Answer 59

marine fire casualty life micro bank deposit agricultural