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Questions and Answers
What is the primary role of financial intermediaries?
What is the primary role of financial intermediaries?
Which of the following is an example of personal finance?
Which of the following is an example of personal finance?
What type of finance involves organizations that do not aim to make a profit?
What type of finance involves organizations that do not aim to make a profit?
Which area of finance includes managing government sources and uses of funds?
Which area of finance includes managing government sources and uses of funds?
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What category of finance involves borrowing between individuals?
What category of finance involves borrowing between individuals?
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What is the main focus of private finance?
What is the main focus of private finance?
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What is the Latin word from which the word 'finance' is derived?
What is the Latin word from which the word 'finance' is derived?
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Which type of check is typically issued by banks and signed by a bank officer?
Which type of check is typically issued by banks and signed by a bank officer?
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As a verb, what does 'finance' mean?
As a verb, what does 'finance' mean?
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In finance, what does direct finance involve?
In finance, what does direct finance involve?
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What does 'indirect finance' involve as per the text?
What does 'indirect finance' involve as per the text?
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How is finance defined when used as a noun?
How is finance defined when used as a noun?
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What is the origin of the word 'money'?
What is the origin of the word 'money'?
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Which characteristic of money ensures that it is of relatively uniform quality and interchangeable with other units?
Which characteristic of money ensures that it is of relatively uniform quality and interchangeable with other units?
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What does fungible mean in relation to money?
What does fungible mean in relation to money?
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Which statement best describes transaction costs?
Which statement best describes transaction costs?
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What is the key function of money as a medium of exchange?
What is the key function of money as a medium of exchange?
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What does finance involve?
What does finance involve?
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Study Notes
Financial Intermediaries
- Act as middlemen when buying securities for resale or facilitating sales from original issuers to final buyers.
Classification of Finance (As to Users)
- Public Finance: deals with government revenue and expenditure patterns, including infrastructure spending and government employee payment.
- Private Finance: all finance not related to public finance, including individual or company borrowing from another individual or institution.
Classification of Private Finance
- Personal Finance: refers to finance conducted by individuals or consumers, including family expenditures.
- Finance of Non-Profit Organizations: involves charitable, civic, or religious organizations that do not aim to gain profit.
Types of Checks
- Personal Check
- Business Check
- Cashier's Check or Manager's Check
- Traveler's Check
Definition of Finance
- As a noun, finance refers to the management of money or monetary resources.
- As a verb, finance means to provide capital for a person or enterprise.
Origin of the Word "Finance"
- Derived from the Latin word "finer," meaning to end or pay.
Functions of Finance
- Allocating available funds
- Acquiring needed funds
- Utilizing funds to achieve set goals.
Classification of Finance (As to Form of Negotiation)
- Direct Finance: involved in direct borrowing, such as a company borrowing from a bank or a friend borrowing from another.
- Indirect Finance: involves financial intermediaries, such as a corporation selling shares to its incorporators.
Definition of Money
- Anything authorized by law to be generally accepted as legal tender, medium of exchange, and standard of value for goods and services.
Origin of the Word "Money"
- Derived from the Latin name "Moneta," a surname of the Roman Goddess Juno Moneta, the goddess of money.
Properties of Money (Currency)
- Fungible: units of the good should be of relatively uniform quality and interchangeable.
- Divisible
- Durable
- Recognizable
- Portable
- Stable
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Description
Test your knowledge on financial intermediaries acting as middlemen in buying and selling securities, as well as the classification of finance based on users, with a focus on public finance related to government revenue and expenditure patterns.
