Podcast
Questions and Answers
Municipal Bonds are long-term instruments issued by ______ to finance projects.
Municipal Bonds are long-term instruments issued by ______ to finance projects.
municipalities
Lease-to-buy are leases where the lessee has the option to buy the property being leased after a given ______.
Lease-to-buy are leases where the lessee has the option to buy the property being leased after a given ______.
period
Mortgage-backed Bonds are bonds that are secured or collateralized by a ______.
Mortgage-backed Bonds are bonds that are secured or collateralized by a ______.
mortgage
Indexed or purchasing power bonds have interest rates paid based on an ______ index.
Indexed or purchasing power bonds have interest rates paid based on an ______ index.
Signup and view all the answers
Cash dividends represent a certain amount per ______.
Cash dividends represent a certain amount per ______.
Signup and view all the answers
Stock dividends provide a certain number of ______ per a specified number of shares held.
Stock dividends provide a certain number of ______ per a specified number of shares held.
Signup and view all the answers
Liquidating dividends are primarily a return of ______; they are also used for extractive industries.
Liquidating dividends are primarily a return of ______; they are also used for extractive industries.
Signup and view all the answers
Secured bonds are collateralized by ______ or other assets.
Secured bonds are collateralized by ______ or other assets.
Signup and view all the answers
A Warehouse Receipt (WR) is evidence of goods stored in a ______.
A Warehouse Receipt (WR) is evidence of goods stored in a ______.
Signup and view all the answers
Trading through barter exchanges can improve operational ______ and add value to the firm.
Trading through barter exchanges can improve operational ______ and add value to the firm.
Signup and view all the answers
Personal checks are drawn against a person's own current/checking ______ with a bank.
Personal checks are drawn against a person's own current/checking ______ with a bank.
Signup and view all the answers
Cashier's checks are issued by a ______ and signed by its cashier or manager.
Cashier's checks are issued by a ______ and signed by its cashier or manager.
Signup and view all the answers
Certified checks ensure the availability of funds in the account of the ______ issuing the check.
Certified checks ensure the availability of funds in the account of the ______ issuing the check.
Signup and view all the answers
Barter exchanges allow for the conversion of unproductive assets into a medium of ______.
Barter exchanges allow for the conversion of unproductive assets into a medium of ______.
Signup and view all the answers
Traveler's checks are a preprinted, fixed amount ______ sold by financial institutions.
Traveler's checks are a preprinted, fixed amount ______ sold by financial institutions.
Signup and view all the answers
One advantage of trading through barter exchanges is a faster turnover of ______.
One advantage of trading through barter exchanges is a faster turnover of ______.
Signup and view all the answers
One of the disadvantages of barter economy is the lack of a way to measure the value of goods and ______.
One of the disadvantages of barter economy is the lack of a way to measure the value of goods and ______.
Signup and view all the answers
After the barter system, various forms of money were introduced, including ______, cowrie shells, and metals.
After the barter system, various forms of money were introduced, including ______, cowrie shells, and metals.
Signup and view all the answers
E-banking and plastic money are examples of ______ money which is exchanged electronically.
E-banking and plastic money are examples of ______ money which is exchanged electronically.
Signup and view all the answers
In the context of currency, businesses typically use a medium of ______ as part of their trading practices.
In the context of currency, businesses typically use a medium of ______ as part of their trading practices.
Signup and view all the answers
The term ______ refers to a monetary system that relies on physical goods to represent value.
The term ______ refers to a monetary system that relies on physical goods to represent value.
Signup and view all the answers
Coins made from ______ and gold have been historically significant as forms of currency.
Coins made from ______ and gold have been historically significant as forms of currency.
Signup and view all the answers
One major reason for the innovation in financial systems is to address the ______ of traditional currencies.
One major reason for the innovation in financial systems is to address the ______ of traditional currencies.
Signup and view all the answers
Different types of plastic money, including credit and debit cards, have become common in modern ______.
Different types of plastic money, including credit and debit cards, have become common in modern ______.
Signup and view all the answers
The money that you borrow will be inflows to the company, what are the outflows from borrowing money from the ______?
The money that you borrow will be inflows to the company, what are the outflows from borrowing money from the ______?
Signup and view all the answers
When evaluating an investment decision, companies should assess the potential ______ of the investment.
When evaluating an investment decision, companies should assess the potential ______ of the investment.
Signup and view all the answers
Loan payable represents a borrowing which will have an inflow of money and an ______ at maturity.
Loan payable represents a borrowing which will have an inflow of money and an ______ at maturity.
Signup and view all the answers
Interest on borrowings may be paid on a ______, semi-annually, or quarterly depending on the agreements.
Interest on borrowings may be paid on a ______, semi-annually, or quarterly depending on the agreements.
Signup and view all the answers
Plastic money usually refers to ______ like credit and debit cards.
Plastic money usually refers to ______ like credit and debit cards.
Signup and view all the answers
E-money refers to money or script that is exchanged only ______.
E-money refers to money or script that is exchanged only ______.
Signup and view all the answers
Standard currency is also known as a single ______ adopted as a monetary standard.
Standard currency is also known as a single ______ adopted as a monetary standard.
Signup and view all the answers
When a company issues equity, it creates ______ certificates.
When a company issues equity, it creates ______ certificates.
Signup and view all the answers
The two types of debit cards are Current Account and ______.
The two types of debit cards are Current Account and ______.
Signup and view all the answers
Barter allows for the exchange of goods and services without the need for ______.
Barter allows for the exchange of goods and services without the need for ______.
Signup and view all the answers
BSP, the mother bank of all banks, is located in ______.
BSP, the mother bank of all banks, is located in ______.
Signup and view all the answers
Retained earnings are calculated after adding and deducting ______.
Retained earnings are calculated after adding and deducting ______.
Signup and view all the answers
The difficulty of storing value can lead to the ______ or degradation of money over time.
The difficulty of storing value can lead to the ______ or degradation of money over time.
Signup and view all the answers
Financial management includes various business organizations such as Service, Trading, and ______.
Financial management includes various business organizations such as Service, Trading, and ______.
Signup and view all the answers
Cash Card, Credit Card, and Prepaid Cash are all types of ______.
Cash Card, Credit Card, and Prepaid Cash are all types of ______.
Signup and view all the answers
Higher maintaining balances are required for ______ accounts compared to savings accounts.
Higher maintaining balances are required for ______ accounts compared to savings accounts.
Signup and view all the answers
Study Notes
Municipal Bonds and Financing
- Long-term instruments issued by municipalities to fund infrastructure projects such as roads, bridges, and sewage plants.
- Lease-to-buy agreements allow lessees the option to purchase leased property after a specified time.
Types of Bonds
- Mortgage-backed Bonds: Secured by mortgages, effectively collateralized.
- Indexed Bonds: Interest rates linked to inflation indices, such as the Consumer Price Index.
Dividends
- Dividends from Earnings: Share of profits distributed to shareholders.
- Cash Dividends: Fixed amount paid per share.
- Stock Dividends: Additional shares given based on existing shareholdings.
- Property Dividends: Non-cash assets distributed as dividends.
- Liquidating Dividends: Return of capital, often used in extractive industries.
Stock Options
- Grants stockholders rights to purchase additional shares, maintaining ownership proportion.
Corporate Bonds
- Secured Bonds: Backed by collateral such as mortgages.
- Debenture Bonds: Unsecured, reliant on issuer's creditworthiness.
Warehouse Receipts
- Evidence of goods stored in a warehouse, usable as collateral for loans.
Types of Checks
- Personal Checks: Drawn against individual checking accounts.
- Business Checks: Issued by companies against their business accounts.
- Cashier's Checks: Issued by a bank, guaranteeing funds availability.
- Certified Checks: Personal checks verified by a bank for fund availability.
- Traveler's Checks: Preprinted checks usable like currency internationally.
Advantages of Barter Exchanges
- Convert unproductive assets into exchange mediums.
- Improve cash flow, increase sales, and enhance profitability.
- Enable faster inventory turnover and utilize idle assets productively.
- Provide online bookkeeping and simplify employee benefits without cash.
Functions of Money
- Serves as a medium of exchange, facilitating transactions in modern economies.
- Historical forms of money included cattle, cowrie shells, and metals like silver and gold.
Electronic Money
- Electronic payments via plastic money and online banking.
- E-cards encompass debit, credit, and prepaid cash cards.
Barter Economy Disadvantages
- Difficulty measuring value of goods and services results in unfair trade.
- Barter transactions can be time-consuming compared to cash transactions.
Business Organizations by Purpose
- Categories include service, trading/merchandising, manufacturing, banking and finance, mining/extractive industry, construction, and genetic industry.
Financial Transactions
- Understanding inflows and outflows in relation to account receivables and payables.
- Borrowing from banks leads to inflows but requires outflows for interest payments.
Standard Currency
- Single standard currency metal serves as a benchmark for transactions.
- The Bank of the Philippines (BSP) is the central bank managing the nation's monetary policy.
Key Financial Concepts
- Retained earnings calculated by adjusting dividends for a company's profit at year-end.
- Effective business decisions require assessing long-term returns on investments, such as purchasing machinery.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores various aspects of municipal bonds and financing, including the types of bonds, dividends, and stock options. Key concepts, such as lease-to-buy agreements and the characteristics of different bond types, will be covered in a comprehensive manner.
