Financial Institutions in the Philippines Quiz

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Questions and Answers

What are examples of non-banking financial institutions according to the text?

  • Central banks, commercial banks, and development banks
  • Insurance companies, mutual funds agencies, and primary dealers (correct)
  • Hedge funds, retail banks, and venture capital firms
  • Investment banks, credit unions, and pension funds

Which market is known for dealing with foreign currencies?

  • Commodity Market
  • Forex Market (correct)
  • Capital Market
  • Money Market

What type of securities are traded in the Money Market?

  • Treasury bills, Repo, and commercial papers (correct)
  • Stocks and bonds
  • Long-term securities
  • Derivatives

In the financial system, what do financial instruments refer to?

<p>Contracts between parties traded in financial markets (D)</p> Signup and view all the answers

'Financial Markets' do not include which of the following categories according to the text?

<p>Stock Market (C)</p> Signup and view all the answers

What is the main function of non-banking financial institutions?

<p>Providing investment services and managing risk (C)</p> Signup and view all the answers

What is one of the main purposes of a financial system as mentioned in the text?

<p>To facilitate savings mobilization and investment (D)</p> Signup and view all the answers

Which of the following is NOT a key component of the financial system?

<p>Real estate market (A)</p> Signup and view all the answers

What is the primary role of money market instruments in the financial system?

<p>Facilitate short-term lending and borrowing (B)</p> Signup and view all the answers

How does money play a crucial role in the economy?

<p>By facilitating transactions and economic activities (B)</p> Signup and view all the answers

What sets banks apart from non-bank institutions in the financial system?

<p>Banks can accept deposits, while non-bank institutions cannot (B)</p> Signup and view all the answers

Which of the following best describes the relationship between savings mobilization and investments in the economy?

<p>Savings mobilization allows for more investments in various economic sectors (A)</p> Signup and view all the answers

What is one of the key features of the Financial System?

<p>Encouraging both savings and investments (A)</p> Signup and view all the answers

Which component is NOT part of the Indian financial system?

<p>Financial Services (B)</p> Signup and view all the answers

What is a characteristic of Non-Banking Institutions?

<p>Offering various financial products and services without accepting deposits (D)</p> Signup and view all the answers

How does the Financial System influence economic development?

<p>By promoting efficient allocation of financial resources (D)</p> Signup and view all the answers

Which category of institutions accept deposits as well as distribute loans?

<p>Financial Institutions and Banking Institutions (B)</p> Signup and view all the answers

What do Financial Markets facilitate in terms of space and time?

<p>Promoting expansion of financial markets over space and time (C)</p> Signup and view all the answers

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