ENUMERATION IN FINALS Flashcards
(24 cards)
The primary function of (FINANCIAL MARKETS) is to PROVIDE A PLATFORM FOR BUSINESSES AND GOVERNMENT to raise capital by issuing securities
to investors.
TRUE
(GLOBALIZATION) is ONE OF THE REASONS WHY PEOPLE IN FINANCE NEEDT TO STUDY financial markets and institutions.
TRUE
(FIRMS) go to markets TO RAISE CAPITAL BY BORROWING MONEY through
debt offering of corporate bonds or short term notes.
TRUE
(FINANCIAL INSTITUTIONS) allow SMALL SAVERS AND BORROWERS TO BENEFIT
from the existence of financial markets thereby increasing the
efficiency in the economy
TRUE
Financial Institutions PROVIDE LONG TERM FUNDS in the form of (WORKING CAPITAL) working capital to small and medium size enterprises.
FALSE (CAPITAL)
Some financial organizations provide (PENSION FUND SERVICES) to their clients by MANAGING THEIR ASSETS, INVESTING IN THE BEST OPTION AVAILABLE IN MARKET, and taking care of its safekeeping.
FALSE (Trust fund services)
Financial institutions provide (INTERMEDIATION) by ACCEPTING DEPOSITS FROM INDIVIDUALS AND BUSINESSES.
FALSE (Depository services)
The primary function of (MONEY MARKET) is FOR BANKS AND OTHER INVESTORS WITH LIQUID ASSETS to gain a return on their cash or loans.
TRUE
(CAPITAL MARKET) is A FINANCIAL MARKET IN WHICH LONGER-TERM DEBT
(original maturity of one year or greater) and equity instruments are traded.
TRUE
The MEETING PLACE FOR PEOPLE, CORPORATIONS OR INSTITUTIONS that either need money or have money to lend.
Financial Markets
INCLUDE NATIONAL, STATE AND LOCAL GOVERNMENTS that are primarily
borrowers of funds for highways, education, welfare and OTHER PUBLIC ACTIVITIES
Public Financial Markets
These are FINANCIAL INTERMEDIARIES THAT ACQUIRE FUNDS by issuing liabilities and in turn use those funds to acquire assets by purchasing securities or making a loan
Financial institutions
These institutions TRANSFER THEIR CUSTOMERS RISK OF LOSS to themselves
Insurance Companies
Financial institutions HELP INDIVIDUALS PLAN THEIR RETIREMENT through this
Pension Fund Services
They MANAGE THE CLIENT’S ASSETS, invest them in the best option available
in the market, and TAKE CARE OF ITS SAFEKEEPING.
Trust Fund Services
This is WHERE SALE OF PREVIOUSLY ISSUED SECURITIES HAPPEN.
Secondary market
A CONTRACTUAL AGREEMENT BY A BORROWER TO PAY THE HOLDER OF INSTRUMENT fixed peso amounts at regular intervals until a specified
date.
Debt Instrument
It refers to ownership in the firm, RIGHT TO VOTE ON IMPORTANT ISSUES AND ELECT ITS DIRECTOR.
Equity Instruments
They are AGENTS OF INVESTORS who match buyers with sellers of securities
Brokers
- The following is/are the REASONS WHY WE NEED STUDY financial markets and institutions?
A. Personal finance
B. Possible employment
C. Possible interaction as an individual or as an
employee or as an owner of a business
D. All of the above
D. All of the above
- It is a COMPANY ENGAGED IN THE BUSINESS of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.
A. Government
B. Financial Market
C. Financial institution
D. Households
C. Financial institution
- Financial Institutions HELP INDIVIDUALS AND BUSINESSES MANAGE AND GROW WEALTH
through:
A. Risk Management
B. Investment Services
C. Asset Management
D. Intermediation
B. Investment Services
- Financial institutions OFFER GUIDANCE ON FINANCIAL PLANNING, RETIREMENT PLANNING, tax planning, estate planning, and overall wealth management through:
A.Financial Advisory
B. Asset Management
C.Intermediation
D. Depository Services
A.Financial Advisory
- It is a FINANCIAL FIRM, SUCH AS A BANK, THAT BORROWS FUND FROM SAVERS and
lends them to borrowers.
A. Financial market
B. Financial institution
C. Financial intermediary
D. Dealer
C. Financial intermediary
