QUIZ SA BUSINESS FINANCE Flashcards
(35 cards)
Known to be widespread and dynamic
FINANCE
Roles of Financial Institutions:
1.Regulate money supply
2.Offer banking and insurance services
3.Assist customers on estate planning
4.Capital formation through business financing
5.Offer investment management and advisory services
6.Offer brokerage services
7.Offer Pension Fund and Retirement planning
8.Offer Trust Fund services.
major categories of financial institutions.
Central banks,
retail and commercial banks,
internet banks,
credit unions,
savings and loans associations,
investment banks,
investment companies,
brokerage firms,
insurance companies,
mortgage companies
can offer different functions
through their different departments or subsidiaries.
Financial institutions
in charge with the general
oversight and management of all other banks.
Central Banks
serve numerous individuals and
organizations
Retail and Commercial Banks
cater to individuals
retail banks
offer product and services to businesses
commercial bank
access financial products and services through the touch of a
button or ass on their hand phone.
Internet Banks
internet banks that are independent and
do not have affiliation to traditional banks
Neo banks
help raise capital.
Investment Banks
They serve as intermediaries between organizations that need additional funds and individuals and other organizations who
have excess funds to invest.
Investment Banks
They buy securities from the
corporations and resell them to savers and investors. This process, called
underwriting
These firms act as
middlemen between buyers and sellers
Brokerage Firms
minimize the effects and losses that round organizations may
experience because if any unfortunate event
Insurance Companies
They design a policy based on the circumstances of the business that may differ from one organization to another.
Insurance companies
primary purpose are to
provide funding to clients who are looking to purchase real
estate properties.
Mortgage Companies
Offer safekeeping services and loans, mainly for home purchases or improvements.
Savings and Loans Associations
important to the economy because they are used to channel funds from investors.
Financial markets
Markets where tangible products such as cars, equipment, and wheat are sold.
Physical assets market
Markets that trade bonds, stocks, notes, and other claims on real assets
Financial assets markets
Markets where short-term and liquid debt securities are traded
Money markets
Intermediate and long-term securities are traded in this type of markets
Capital markets
newly released securities of corporations are traded
Primary Markets
