REVIEWER

• Financial system


  Describes collectively the financial markets, the financial system participants and the financial requirements and securities that are traded in the financial markets
• Medium of exchange


  The second function of the financial system
• Fund acquisition


  A way of getting deposits and necessary funds to finance projects and investments
• Fund allocation


  Determines to which uses projects, or investments the acquired funds will be used
• Fund distribution


  The process by which necessary funds are given to the uses, projects, or investments that need funds
• Fund utilization


  The fund uses for its intended purpose
• Participants in the financial system

  • Household/consumer
  • Financial intermediaries
  • Government
  • Non-financial institutions
  • Central bank
  • Foreign participants
• Monetary board


  The Board that governs the Central bank
• Bangko Sentral ng Pilipinas


  The nation's central bank that hopes to establish a more secure, adaptable, stable, and robust financial and monetary system for the nation, which will in turn foster a better economy
• Bank of issue


  • BSP function that grants it monopoly status over the production of coins and banknotes
• Custodian of the cash reserves of banks

  • BSP function in which the central bank requires all banks to maintain sufficient reserves in relation to their deposit liabilities with the BSP in order to guarantee cash availability for depositors seeking to withdraw deposits
• Bank of central clearance and settlement


  • BSP function in which the central bank acts as a sort of clearing house
• Monetary policy


  The manipulation of money supply to affect the economy of a country as a whole
• Expansionary monetary policy


  The policy that increases the supply of money
• Money supply


  The total currency and coins and demand deposits in the economy
• Financial markets


  The channels via which money moves, divided into money and capital markets, and primary vs secondary markets
• Primary market


  The market in which users of funds like corporations raise funds, through new issues of financial instruments such as stocks and bonds
• Primary securities


  The underwriters, issuers, and instruments that are used in the purchase and sale of newly issued or original securities
• Financial intermediary


  Firms that bridge the gap between surplus units or investors/lenders and deficit units or the borrower, channeling funds from lenders to borrowers
• Securities market


  Where corporations issue marketable/negotiable stocks or bonds in order to raise long term capital
• Stock index


  The measure of the price level of the shares listed in the exchange by the indicated category
• Corporate bond


  The long-term bonds that private companies issue
• Derivatives


  A type of securities whose market is directly related to or derived from another trade security
• Municipal bonds


  An important financial instrument for development, acknowledged as a potential tool for development in the Philippines
• Lines of credit


  The bank's commitment to make loans to regular depositors up to a specific amount
• Temporary investments


  Stocks held for short-term use, classified as current assets under marketable securities
• No par value shares

  Shares without money value appearing on the face of the stock certificate
• Passed dividends


  Dividends not declared by the board of directors in a given period
• Unissued common stocks


  The part of the authorized capital stock that has not been fully paid, meaning stocks certificates have not been issued
• Securities broker


  People who don't purchase for their own account as all they make are commissions
• Loan market


  Where a one-on-one transaction between a lender and borrower occurs
• Market specialist


  Financial institutions that channel funds directly to deficit units from the surplus units but do not issue their own financial instruments or securities
• Indirect finance


  When intermediaries pool deposits and transform them into secondary securities which they sell to investors
• Mortgage


  Agreements in which a landowner takes out a loan from a Financial Institutions and uses their property as security or collateral
• Corporate stocks


  The largest capital market instruments
• Retained earnings


  The profits of the company that have not been declared as dividends and retained by the business to help its operations
• Foreclosed properties


  Properties that the lenders have seized because the borrowers were unable to make their loan payments and because the properties served as loan collateral
• Auctions market


  Where the trading is done by an independent third-party matching price on orders received to buy and sell a particular security
• Securities and Exchange Commission

  The national government regulate 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
• Pension fund companies


  They sell contracts to provide income to policyholders during their retirement years