Podcast
Questions and Answers
What is the main characteristic of direct lending?
What is the main characteristic of direct lending?
- Involves an intermediary but not a broker
- Transfer of funds between buyer and seller
- Funds transferred without an intermediary (correct)
- Involves an intermediary
Which of the following is an example of direct financing method?
Which of the following is an example of direct financing method?
- Private placements (correct)
- Dealer
- Investment banker
- Broker
What is the role of an investment banker?
What is the role of an investment banker?
- Take title to the securities traded
- Act as an intermediary between buyers and sellers
- Handle financial transactions for individuals
- Provide financial advice and underwrite new securities (correct)
Which element/component of the Philippine financial system involves the buying and selling of stocks, bonds, and other securities?
Which element/component of the Philippine financial system involves the buying and selling of stocks, bonds, and other securities?
What is one of the main functions of the financial system mentioned in the text?
What is one of the main functions of the financial system mentioned in the text?
Which sector of the economy gets credit from the financial system for borrowing and lending?
Which sector of the economy gets credit from the financial system for borrowing and lending?
What advantage does the financial system offer in terms of risk sharing?
What advantage does the financial system offer in terms of risk sharing?
What is liquidity in the financial system context?
What is liquidity in the financial system context?
Which market deals with low-risk debt instruments that mature in one year or less?
Which market deals with low-risk debt instruments that mature in one year or less?
Where is the Deutsche Bundesbank located?
Where is the Deutsche Bundesbank located?
What is the main responsibility of the Bangko Sentral ng Pilipinas?
What is the main responsibility of the Bangko Sentral ng Pilipinas?
In which market are bond and equity shares with long-term maturities traded?
In which market are bond and equity shares with long-term maturities traded?
What is the main responsibility of the Bangko Sentral ng Pilipinas (BSP) according to the text?
What is the main responsibility of the Bangko Sentral ng Pilipinas (BSP) according to the text?
Who was the first Governor of the Bangko Sentral ng Pilipinas (BSP)?
Who was the first Governor of the Bangko Sentral ng Pilipinas (BSP)?
What is one of the objectives of the BSP as mentioned in the text?
What is one of the objectives of the BSP as mentioned in the text?
When was the BSP established according to the text?
When was the BSP established according to the text?
Study Notes
Financial System
- Direct lending is characterized by a direct financial relationship between the lender and the borrower.
Financing Methods
- An example of a direct financing method is borrowing from friends and family.
Investment Banker's Role
- An investment banker acts as an intermediary between issuers of securities and investors.
Philippine Financial System
- The capital market is the element of the Philippine financial system that involves the buying and selling of stocks, bonds, and other securities.
Functions of the Financial System
- One of the main functions of the financial system is to facilitate the transfer of funds from savers to borrowers.
Financial System Sectors
- The household sector of the economy receives credit from the financial system for borrowing and lending.
Risk Sharing
- The financial system offers the advantage of risk sharing by allowing companies to share their risks with investors.
Liquidity
- In the financial system context, liquidity refers to the ability to convert assets into cash quickly and at a low cost.
Money Market
- The money market deals with low-risk debt instruments that mature in one year or less.
Deutsche Bundesbank
- The Deutsche Bundesbank is located in Germany.
Bangko Sentral ng Pilipinas (BSP)
- The main responsibility of the Bangko Sentral ng Pilipinas (BSP) is to maintain price stability and promote a healthy financial system.
- The BSP is responsible for regulating and supervising banks and other financial institutions.
Capital Market
- The capital market is where bond and equity shares with long-term maturities are traded.
BSP Objectives
- One of the objectives of the BSP is to promote a healthy financial system.
BSP History
- The Bangko Sentral ng Pilipinas (BSP) was established in 1993.
- The first Governor of the Bangko Sentral ng Pilipinas (BSP) was Miguel Cuaderno.
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Description
Learn the distinctions between money market and capital market, including examples of instruments found in each. Explore the role of Deutsche Bundesbank as the central bank of Germany.
