Financial Markets and Intermediaries Quiz

Money is anything that is generally accepted in payment for goods and services for the retirement of ______

Money may also be used to transfer purchasing power to the ______

The ease with which an asset may be converted into money is its ______

The Bangko Sentral ng Pilipinas (BSP) is the only authorized government entity to print ______

Stocks, bond, savings accounts, real estate, gold and collectible are some of the various assets that may be used to store ______

The Role of Money

Money is anything that is generally accepted in payment for goods and services or for the retirement of debt.
Different items, such as shells, stones, and metals, have served as money in the past.
Money serves three functions: medium of exchange, store of value, and unit of account.

Functions of Money

Medium of exchange: money is used to pay for goods and services.
Store of value: money can be saved and stored for future use.
Unit of account: money serves as a standard unit of measurement for the value of goods and services.

Alternative Stores of Value

Assets such as stocks, bonds, savings accounts, real estate, gold, and collectibles can also be used to store value.
These assets cannot be used directly to buy goods and services; they must be converted into money first.
The ease with which an asset can be converted into money is its liquidity.

The Bangko Sentral ng Pilipinas (BSP)

The BSP is the only authorized government entity to print money in the Philippines.

Test your knowledge of the role of financial markets and financial intermediaries in the CAPITAL module 1 with this quiz. Learn about the significance of money and its role in payment for goods and services, debt retirement, and transferring purchasing power to the future.