Chapter 1

Question 1

refers to the whole gamut of market dealings with financial assets

Answer 1

Financial system

Question 2

it is where the lenders and borrowers of funds meet to finance their needs and satisfy their objectives.

Answer 2

Financial System

Question 3

the lenders can be

Answer 3

individuals
businesses
institutions
government

Question 4

the borrowers can be

Answer 4

individuals
businesses
institutions
government

Question 5

when the lenders and borrowers meet, the lenders transform their fudns into

Answer 5

financial assets

Question 6

the borrowers receive the funds as their?

Answer 6

financial liabilities

Question 7

like any other commodity, has a price.

Answer 7

Money

Question 8

brings together the borrowers and lenders of funds

Answer 8

intermediation process

Question 9

is the most common form of financial intermediation in the financial system

Answer 9

Banking system

Question 10

type of financial markets

Answer 10

Money market
Capital Market

Question 11

types of institutions

Answer 11

banking institution
non-bank financial intermediaries
non-bank thrift institutions

Question 12

components of banking institutions

Answer 12

universal banks
commercial banks
thrift banks
rural banks
specialized government banks

Question 13

Components of non-bank financial intermediaries

Answer 13

investment houses
financing companies
securities dealers/ brokers
investment companies
insurance companies
lending investors
pawnshops
Government non- bank financial institutions
venture capital corporations

Question 14

non-bank thrift institutions

Answer 14

mutual building & loan associations
non stock savings & loans

Question 15

is responsible for implementing the monetary policy and regulation of the banking system.

Answer 15

Bangko sentral ng pilipinas

Question 16

supervises the operations of the insurance companies

Answer 16

insurance commission

Question 17

works with the bsp and IC in supervising and regulating the activities of the financial institutions in the country

Answer 17

Securities and exchange commission

Question 18

are expanded commercial bans capitalized at 5 billion or more

Answer 18

Universal Banks

Question 19

Are banks with a minimum capitalization of 2.8 billion

Answer 19

Commercial Banks

Question 20

Are banks with a minimum capitalization of 325 million for those whose head office is within metro manila, and php 25 million otherwise.

Answer 20

Thrift or savings bank

Question 21

are normally operatign in the sector with minimum capitalization of 3.2 million. but those in metro manila needs minimum capitalization of 32 million

Answer 21

Rural Banks

Question 22

Are government owned and controlled corporations engaged in specialized lending

Answer 22

Specialized government banks

Question 23

are involved in underwriting of securities, financial consultancy

Answer 23

Investment houses

Question 24

lend to business firms and individuals using equity capital and long-term borrowed funds

Answer 24

financing companies

Question 25

sell its own securities to the public and invest the proceeds in stocks and bonds

Answer 25

Investment Companies

Question 26

are engaged in property -liability, life insurance.

Answer 26

Insurance Companies

Question 27

are involved in the buying and selling of securities and have a minimum capital of php 30 million

Answer 27

Securities Dealers

Question 28

cater to the financial requirements of smaller firms

Answer 28

lending investors

Question 29

provide immediate cash relief to the individual customers but charge higher rates than most banks

Answer 29

Pawnshops

Question 30

are companies catering to a niche market.

Answer 30

mutual building and loan associations and no-stock and loans associations

Question 31

the financial system can now be subdivided into 4 major markets

Answer 31

Money market capital Market Foreign exchange market derivatives market

Question 32

is a segment of the financial market with dealings in short term maturities of financial contracts

Answer 32

Money market

Question 33

most money market are

Answer 33

fixed income debt instrumetns

Question 34

is a segment of the financial market with dealings in maturities beyond 1 year.

Answer 34

Capital Market

Question 35

types of capital market

Answer 35

primary secondary

Question 36

The form of financial instruments in the capital market can be classified as

Answer 36

debt equity

Question 37

refers to the issuance of new securities representing an actual transfer of funds

Answer 37

Primary markets

Question 38

Primary markets refers to the issuance of new securities representing an actual transfer of funds from the investor to the issuing entity commonly called

Answer 38

Initial Public Offering

Question 39

refers to the trading of securities providing a liquidity mechanism

Answer 39

Secondary Market

Question 40

the secondary market can be

Answer 40

Organized Market Over the counter maret

Question 41

is a financial obligation that has to be repaid with interest.

Answer 41

Debt

Question 42

is a form of ownership in an enterprise and does not have to be repaid.

Answer 42

Equity

Question 43

are debts of private corporations which carry interest repayments

Answer 43

Commercial Papers

Question 44

has an inferior claim to a financial asset of debts, preferred shares among otehrs

Answer 44

equity ownership

Question 45

refers to the market dealing in a foreign currencies'.

Answer 45

Foreign exchange market

Question 46

is an organized secondary market where the buying and selling clients of the bankers association of the Philippines meet and where transactions are mapped or recorded.

Answer 46

Philippine dealing system

Question 47

includes all financial contracts deriving its value from any other underlying assets

Answer 47

Derivatives marekt

Question 48

example of underlying assets

Answer 48

security prices commodity prices interest rates foreign exchange rates

Question 49

basic classes of derivatives maret

Answer 49

futures options swaps forward rate contracts

Question 50

are securities issued by the bureau of treasury with maturities.

Answer 50

Government bonds

Question 51

the exchange of assets in the financial system is consummated in

Answer 51

specialized financial market

Question 52

4 major markets

Answer 52

money market foreign exchange market capital market derivatives market

Question 53

where most of the trading is done

Answer 53

Philippine dealing system

Question 54

It is the segment of the financial market with dealings in maturities beyond one year.

Answer 54

Capital Market

Question 55

It is an organized secondary where the buying and selling clients of Bankers Association of the Philippines meet and where transactions are mapped or recorded.

Answer 55

Philippine dealing system

Question 56

provide a risk management tool in the financial system.

Answer 56

Derivatives

Question 57

first bank in the philippines

Answer 57

Bank of the Philippine Islands

Question 58

a charity foundation by laymen used for charity works and religious activities. It became a banking institutions run by the friars.

Answer 58

Obras pias

Question 59

One of the first banks to emerge in the 19th century. It was more of a loan association than a modern bank.

Answer 59

Rodriguez bank

Question 60

it was the first state bank.

Answer 60

Banco Espanol-Filipinas De Isabel II

Question 61

First universal bank in the philippines

Answer 61

Philippine national Bank

Question 62

when did bsp actually started out as the central bank of the philppines

Answer 62

January 3 1949

Question 63

a segment of the financial market with dealings in short term maturities of financial contracts.

Answer 63

Money Market

Question 64

segment of the financial market with dealings in maturities beyond 1 year.

Answer 64

Capital Market

Question 65

is where short-term funds are raised through the buying and selling of short term debt securities such as commercial papers.

Answer 65

Money Market

Question 66

is where long-term funds are raised through the bond market, which deals with long-term debt securities such as bonds, the stock market which deals with equity securities or stocks.

Answer 66

Capital Market