Banking And Finance Quiz 1

Front 1

It consist institutional units and markets that interact for the purpose of mobilizing funds from lenders to borrower

Back 1

Financial system

Front 2

SSU

Back 2

surplus spending unit

Front 3

DDU

Back 3

deficit spending unit

Front 4

A term used un finance to describe the system that allows money to go between savers and borrowers

Back 4

Financial system

Front 5

GSIS

Back 5

Government Security Insurance System

Front 6

Evidence of ownership

Back 6

Stocks

Front 7

Evidence of obligations

Back 7

Bonds

Front 8

The borrower is unknown to the savers or the surplus spending unit

Back 8

Indirect finance

Front 9

You know already who is your borrowers

Back 9

Direct finance

Front 10

It can be use as exchange of goods and services

Back 10

Money

Front 11

Institutions that channel funds from individuals with surplus funds to those desiring funds

Back 11

Banking and financial institutions

Front 12

Accept deposits and make loan

Back 12

Banks

Front 13

A formal obligation that entitles one party to receive payments and or share of assets from another party

Back 13

Financial instruments

Front 14

Entitled to this in bonds

Back 14

Holders

Front 15

Entitled to receive dividends

Back 15

Stocks

Front 16

Share in the net income of the company

Back 16

Dividends

Front 17

Are mechanism that allows people to easily buy and sell financial securities

Back 17

Financial market

Front 18

A debt security that promises to make specified rate of interest payments periodically for a specified period of time

Back 18

Bond market

Front 19

A stock represents a share of ownership of a corporation or a claim on a firm's earning or assets

Back 19

Stock market

Front 20

Where funds are converted from one currency into another

Back 20

Foreign exchange market

Front 21

A government body that regulates financial institutions, controls the supply of money and credit in the economy, handles government finances and serves as the bank to commercial bank

Back 21

Central bank

Front 22

2 types of policy

Back 22

Contractionary

Fiscal

Front 23

Decrease of money supply/ lower ssu

Back 23

Contractionary

Front 24

Increase of money supply/higher ssu

Back 24

Expansionary

Front 25

Involves decision about government spending and taxation

Back 25

Fiscal policy

Front 26

7 development of Philippine financial system

Back 26

1.Obras pias

2. El banco español Filipino de isabela

3. British orient bank

4. Honkong and shanhai banking corporation

5. Monte de piedad y caja de ahorros

6. Bpi iloilo branch office

6. Pnb

Front 27

Started by juan fernandez de leon

Back 27

Obras pias

Front 28

First formal bank

Back 28

El banco español Filipino de isabela

Front 29

Expanded the Philippine-european trade following the opening of the suez canal

Back 29

British orient bank

Front 30

Provide financing

Back 30

Honkong and shanhai banking corporation

Front 31

The first savings bank intended to help the poor

Back 31

Monte de piedad y caja de ahorros

Front 32

The country's first bank branch

Back 32

Bpi iloilo branch office

Front 33

The first universal bank in the Philippines

Back 33

Pnb

Front 34

Act no 52 was passed by the 1st Philippine commission placing all banks under the bureau of Treasury

Back 34

1900

Front 35

The BoB took over the task of banking supervision

Back 35

1929

Front 36

Particular group of Filipinos were trying to conceptualize a central bank of the Philippines

Back 36

1933

Front 37

A bill was drafted and approved, however, the bill was returned by the US

Back 37

1939

Front 38

Manuel roxas submitted to congress a bill "establish the central bank of the Philippines"

Back 38

1948

Front 39

Bill was signed into law as republic act no. 265 by elpidio quirino

Back 39

June 1948

Front 40

CBP was inaugurated and formally opened

Back 40

January 3, 1949

Front 41

BSP was established to replace the CBP as the country's monetary authority

Back 41

July 3, 1993

Front 42

The primary objective is to maintain price stability conducive to a balanced and sustainable economic growth

Back 42

BSP

Front 43

Provides policy directions in the areas of money, banking and credit

Back 43

Responsibilities

Front 44

Formulates and implements monetary policy aimed at influencing money supply consistent with its primary objective to maintain price stability

Back 44

Liquidity management

Front 45

Its purpose is to preserve purchasing power of our country

Back 45

Liquidity management

Front 46

How bsp control money supply

Back 46

1. Through interest rate

2. Cash reserves requirement

3. Buying and selling securities

Front 47

BSP has the exclusive power to issue the national currency. All notes and coins issued by the government and are considered legal tender for all private and public debts

Back 47

Currency issue

Front 48

Name of currency before

Back 48

New design Philippine bank note

Front 49

Name of our currency now

Back 49

New generation Philippine bank note

Front 50

The BSP extends discounts, loans and advances to banking institutions for liquidity.

Banks allowed to borrow money in BSP but they need to prove that they are exosted with their resources

Back 50

Lender of last resort

Front 51

Who is the lender of last resort

Back 51

Bsp

Front 52

The bsp supervises banks and exercises regulatory powers over non-bank institutions performing quasi-banking functions

Back 52

Financial supervision

Front 53

6 major types of bank

Back 53

1. Universal

2. Commercial

3. Thrift

4. Rural

5. Cooperative

6 Islamic

Front 54

The bsp seeks to maintain sufficient international reserves to meet any foreseeable net demands for foreign currencies in order to preserve the international stability and convertibility of the Philippine peso

Back 54

Management of foreign currency reserves

Front 55

Determines the exchange rate policy of the Philippines

Back 55

Determination of exchange rate policy

Front 56

Government agency or privately owned entity that collects funds from the public and from other institutions, and invest those funds in financial assets

Back 56

Financial institutions

Front 57

Act as intermediaries between saver and borrowers and are differentiated by the way they obtain and invest their funds

Back 57

Financial institutions

Front 58

Types of financial institutions

Back 58

Depository

Non-depository

Front 59

A type of financial institutions which are insured by the federal government against loss, channeling their depositor's money into lending activities

Back 59

Depository financial institutions

Front 60

A type of financial institutions which fund their investment activities directly from the financial markets by selling securities to the public. They do not accept deposits and not lending, but they are accepting contributions, payments of insurance companies

Back 60

Nondepository financial institutions

Front 61

Specific functios of financial institutions

Back 61

1. Investigation and credit analysis

2. Matching the supply and demand for funds

3. Provisions for liquidity

Front 62

4 types of sectors

Back 62

1. currency management sector

2. Monetary stability sector

3. Financial supervision sector

4. Corporate services sector

Front 63

A type of sector which is responsible for the printing, minting of our currencies

Back 63

Currency management sector

Front 64

A type of sector which is responsible for the control of money supply

Back 64

Monetary stability sector

Front 65

A type of sector which is responsible for the operation of financial institutions

Back 65

Financial supervision sector

Front 66

A type of sector which is responsible For the human resource management of the bsp. Administrative function

Back 66

Corporate services sector

Front 67

3 types of examination

Back 67

1. General or regular examination

2. Special or interim examination

3. Special investigation

Front 68

A type of examination that ia conducted once a year, it is to ensure that the financial institutions are stilk solvent

Back 68

General or regular examination

Front 69

Capacity of the bank to pay its long term obligations

Back 69

Solvency

Front 70

If they can finace their daily operations

Back 70

Stability

Front 71

A type of examination which is conducted only when necessary. The purpose of this is for checking of assets and capital of a bank, for checking on specific activity of a bank

Back 71

Special or interim examination

Front 72

2 common activities of a bank

Back 72

Accepting deposits

Lending money

Front 73

A type of examination that is conducted when BSP receives complaints from the customer of the bank as well as the employees of the bank

Back 73

Special investigation

Front 74

How do banks earn profits

Back 74

Through borrowing funds from depositors then lend it for higher interest, the difference would be their income

Front 75

Composition of balance sheet

Back 75

Assets

Liabilities

Equity or capital

Front 76

Composition of the bank assets

Back 76

1. Reserves

2. Securities

3. Loans

Front 77

Equal to the bank's vault cash and its deposits at the central bank

Back 77

Reserves

Front 78

2 types of reserves

Back 78

1. Vault cash

2. Cash reserves

Front 79

The money available for the bank for lending not only cash but also documents. There will be amount of cash maintained in their vault

Back 79

Vault cash

Front 80

The amount of cash deposited to the bsp

Back 80

Cash reserves

Front 81

Mainly debt securities which provide a good source of liquidity. Government securities owned by the bank

Back 81

Securities

Front 82

Extended to the borrowers

Back 82

Loan

Front 83

4 types of loan

Back 83

Business

Real estate

Consumer

Personal