Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise,write FALSE.1. A bank is a financial institution licensed to receive deposits and make loansand may also provide financial services such as wealth management, currency exchange,and safe deposit boxes.2. Debt financing is the process of raising capital through the sale of shares.3. Equity financing is the riskiest among all the sources of financing.4. Banks in the Philippines offer a fixed or standard term for business loans.5. For government loans, when the borrower receives money from the approvedloan, payments shall be deducted every month from their salary and will be forwarded tothe government agency._6. Loan requirements for a personal loan are just the same in a loan applicationfor a corporation._7. To avoid fraud, it is recommended to check the Philippine Stock Exchange(PSE) to see if a private lender is registered and has legitimate operations in the country.8. Short-term financing is needed for the purchase of inventory for a clothing shop.9. A franchise of a fast-food outlet requires short-term financing.10. Financial institutions serve most people in some way, as financial operationsare a critical part of any economy, with individuals and companies relying on financialinstitutions for transactions and investing.

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Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write FALSE. 2 1. A bank is a financial institution licensed to receive deposits and make loans and may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. 2. Debt financing is the process of raising capital through the sale of shares. _3. Equity financing is the riskiest among all the sources of financing. 4. Banks in the Philippines offer a fixed or standard term for business loans. 5. For government loans, when the borrower receives money from the approved loan, payments shall be deducted every month from their salary and will be forwarded to the goyernment agencyY,

Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write FALSE. 2 1. A bank is a financial institution licensed to receive deposits and make loans and may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. 2. Debt financing is the process of raising capital through the sale of shares. _3. Equity financing is the riskiest among all the sources of financing. 4. Banks in the Philippines offer a fixed or standard term for business loans. 5. For government loans, when the borrower receives money from the approved loan, payments shall be deducted every month from their salary and will be forwarded to the goyernment agencyY,

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Select TWO true statements about money.a. Base money is equal to cash plus commercial bank reserves with the central bankb. Cash is a liability of the central bankc. If a commercial bank makes a loan and credits the borrower's current account, then base money increasesd. Commercial bank reserves with the central bank appear as a liability in their balance sheets
A bank wants to implement a loan pricing model and has to look at several variables to consider. Please select the variable that is incorrectly described. a. A profit margin to provide the bank with an adequate return on capital. b. Risk premium to counter the effect of default risk. c. Cost of funding that include the cost of bonds issued. d. Operating costs that include the cost of interest paid to depositors.
Which of these statements about banks is true: i) Banks cannot convert all deposits in the Reserves Accounts into loans. ii) Banks can convert all deposits in the Reserves Accounts into loans. iii) Banks can create money iv) Banks can issue money. v) Commercial Banks decide on the reserves ratio O i and iii O ii and iii ii and iv i and v
Match up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks
L A Moving to another question will save this response. Question 1 Which of the following statements is (are) true? (i) Bank certificates of deposits are capital market instruments. (ii) A dollar-denominated deposit at a Chinese bank located in Japan is called Eurodollar. (iii) An overnight repurchase agreement is similar to an overnight collateralized loan. O (i) and (iii) only (ii) and (iii) only (i) and (ii) and (iii) O (i) and (ii) only A Moving to another question will save this response.
Which of the following are issued by large commercial banks that can be bought and sold among investors and carry a fixed interest rate? a. Eurodollar CD O b. Certificate of Deposits c. Commercial Papers d. Treasury Bills
Our textbook claims that one of the key services banks provide is maturity intermediation: what exactly does this mean? (Choose an answer from the list below; only one is correct.) Reference: Chapter 11 and/or Chapter 1 Banks borrow money from their younger customers and lend it to their older customers. Banks gather small deposits and use them to make large investments, allowing small investors to collectively buy large assets. Banks are funded with deposits that they promise to return on demand but use them to make long-term loans, which creates a mismatch in the maturities of their assets & liabilities.
3. Uses of commercial bank funds Which of the following are ways that commercial banks use the funds they receive? Check all that apply. Provide working capital loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. Provide term loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. Provide working capital loans to support business' ongoing operations. Engage in repurchase agreements. True or False: The major use for bank funds is real estate loans. True False
Q2: How do banks make money? By issuing new currencies into the market. By charging interests to depositors who deposit their money in the bank. By issuing licenses to foreign banks who want to operate in Singapore. By charging fees for various services such as Credit Card annual fee, loan interest rates, late payment fees. Q3: Which of the following statements accurately describes simple interest? Simple interest is the interest calculated on the principal amount, the accumulated interest, and the time period of the investment. Simple interest is the interest calculated on both the principal and the accumulated interest. Simple interest is the interest calculated only on the principal amount. Simple interest is the interest calculated on the principal amount and the time period of the investment. Q4: What is the difference between a debit card and a credit card? A debit card charges interest on purchases, while a credit card doesn't. A debit card allows you to spend money you…
Banking may be subdivided into at least three categories of banks. Match the definitions with the appropriate name. 1. I. A bank that specializes in retail or consumer banking in a local market 2. II. A bank that engages in a complete array of wholesale commercial banking activities and usually also provides retail banking services 3. III. A bank that is located in a financial center and relies on nondeposit or borrowed sources of funds for a significant portion of its liabilities O Money center bank, super-regional bank; community bank O Super-regional bank, money center bank, community bank O Community bank; super-regional bank; money center bank Community bank; money center bank; super-regional bank Money center bank; community bank; super-regional bank
Question No: 04 This is a subjective question, hence you have to write your answer in the Text-Field given below. "In case of financial institutions along with financial performance financial stability is also very crucial." Discus with suitable illustrations the ratios calculated in order to measure financial stability of a bank.

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