BANKING (5-6)

24問 • 1年前

問題一覧

An institution that deals in money and its substitutes and provides other money-related services

Bank

defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to conduct economic activities such as making profit or simply covering operating expenses.

Banking

are the only intermediaries that intermediate between all ultimate lenders and borrowers and all other financial intermediaries.

Banks

are unique financial intermediaries. They are the only intermediaries that intermediate between all ultimate lenders and borrowers and all other non-bank financial intermediaries.

Banks

The management of risk ___ is at the core of banking, and this is what differentiates them from other companies

The main threat to banking is the

securities markets

have their genesis in the relationship between the private sector banks and the central bank.

Interest rates

Financial intermediaries facilitate the flow of funds from surplus economic units to deficit economic units.

Facilitation of flow of funds

The presence of asymmetric information leads to adverse selection and moral hazard problems.

Efficient allocation of funds

The banks are the professionals / experts in the financial system. They are actively involved in the pricing of financial services and securities.

Assistance in price discovery

This function may also be termed the credit of loan function. Not only are existing funds allocated efficiently, but new money is also allocated efficiently by the banking sector. They have the unique ability to create money (their own deposits) by making new loans

Money creation

Created for the depositor with a bank. If an individual purchases the securities of the ultimate lenders (such as making a loan to a company), liquidity is low or almost zero.

Enhanced liquidity

Provides the mechanism for the making of payments for anything that is purchased.

Payment system

The financial assets / instruments of transfer that are accepted as payment include: Financial assets (money): Instruments of transfer:

Bank notes and coins (issued by the central bank in most cases). Bank deposits. Cheques. Credit, debit and smart cards. And Electronic funds transfer (EFTs) facilities (such as internet banking facilities).

Banks are both the instruments of money creation and the mechanism for the implementation of monetary policy.

Monetary policy function

provides a brief and simple definition of the term "Banks" - classifying banks in order that each class can have its own niche or service orientation

General Banking Law of 2000

shall refer to entities engaged in the lending of funds obtained in the form of deposits.

Banks

Banks shall be classified into

Universal Banks Commercial Banks Thrift Banks Rural Banks Cooperative Banks Islamic Banks

Thrift banks composed of

(i) Savings and mortgage banks (ii) Stock savings and loan associations; (iii) Private development banks - as defined in RA No. 7906 (the Thrift Banks Act);

as defined in _______ (the Thrift Banks Act);

RA No. 7906

as defined in _______ (the Rural Banks Act);

RAc No. 7353

as defined in _______ (the Cooperative Code);

RA No. 6938

as defined in _____ , the Charter of Al-Amanah Islamic Investment Bank of the Philippines

RA No. 6848

Bank notes and coins (issued by the central bank in most cases). Bank deposits.

Financial assets (money)

MONETARY REVIEWER LESSON 1

Shiela Caber · 11問 · 1年前

MONETARY REVIEWER LESSON 1