1. Money serves key functions such as being a standard of deferred payments, medium of exchange, and store of value.
2. Credit involves obtaining goods or services in exchange for a promise to pay in the future, and carries risks such as interest accumulating if not paid in full.
3. When evaluating individuals for credit, characteristics considered include capacity to pay, collateral owned, and credit history.
1. Money serves key functions such as being a standard of deferred payments, medium of exchange, and store of value.
2. Credit involves obtaining goods or services in exchange for a promise to pay in the future, and carries risks such as interest accumulating if not paid in full.
3. When evaluating individuals for credit, characteristics considered include capacity to pay, collateral owned, and credit history.
1. Money serves key functions such as being a standard of deferred payments, medium of exchange, and store of value.
2. Credit involves obtaining goods or services in exchange for a promise to pay in the future, and carries risks such as interest accumulating if not paid in full.
3. When evaluating individuals for credit, characteristics considered include capacity to pay, collateral owned, and credit history.
FIN 121 This is a government-created money → Currency,
Quiz 1 Coins with a face value greater than the material
used → Fiat money, Exchanging of goods before was done if the family A direct trade of goods and services → Barter, has no surplus of their production. False The process of minting metals to certain shapes for Metals possess the attribute of portability. True uniformity in shapes and sizes → Coinage, A characteristic of money capable of enduring the These are bills and notes → Paper money, physical challenges along the trails of circulation. Durability This money can be in any form such as farm animals, grains, high-value crops, salt, and others A characteristic of money that is capable of passing to exchange goods → Commodity money, through the process of casting to make it sure it has A piece of metal bearing a stamp indicative of its the authoritative stamp or markings in it. weight and fineness → Coins, Malleability A promissory note with a promise to the bearer A coin is said to be durable if it will bear normal standard money on demand → Credit money, wear and tear when used in any transaction. True These are checks or other paper notes issued by financial intermediaries → Bank money, Coins making is regulated by the government to insure uniformity in weight and fineness. True Anyone that stores their precious metals with a pawnshop will get this note as evidence → A retirement age of coins is five (5) years. False Receipts
The Philippine government today allows people to Quiz 2
mint their gold into coins if they desire to with a fee. The credit card is an advantage to take but False generally tempting to use for non-essential and overspending acquisition of goods. True'. Money serves as a standard of deferred payments in all debts. True Credit card usage if not paid in full can blow up the financial obligations of the cardholder. 'True'. This authentic stamp of the government should be embedded in a money and should be easily visible Credit presents opportunity for debtor to engage in and distinguishable to prevent forgery or business activity. 'True'. counterfeiting. DurabilityRecognizability If refers to the ability to obtain a thing of value in exchange for a promise to pay with money or Gold material was minted before into coins. True something equally satisfactory to the seller at some future time. Credit Barter system was practiced before to help facilitate exchange of goods for goods. True Interest on credit card purchases will blow up and revolve monthly if only portion of its balance is Paper money is created without any quantity of being paid. 'True'. gold kept as reserved by the government. False This refers to the resources owned by the borrower Money is used to determine its standard of value. such as properties and other liquid assets over and True above his obligation. Capital Fiat standard is a system in which the value of the Credit is good for it postpones financial outlay on monetary unit is not kept equal. True the part of the debtor to adjust with financial matters. 'True'. A characteristic of money, which is capable of being increased or decreased depending on the A credit extended by commercial banks for state or needs of the economy. Elasticity purposes of assisting businessmen to fund their operation, but will check on the credit history and The material content of a paper money is of higher the assets of the company or person. Bank credit value than its face value amount. False This refers to ownership of the person like building, Goods or items rare or difficult to find will result to machines that can be used as security that helps the higher price of it. True ensure the repayment of the loan in the event of One characteristic of a metal is it can be divided default. Collateral into fractions. Divisibility Credit card is prone to fraud if not properly take care of. 'True'. This characteristic of money is that it can be carried anywhere with ease and convenience. Portability Credit should not be used for business operation Their membership and other benefits are restricted because the interest rate is high and that that high only to government employees. → Government return of it cannot be expected. 'False'. Service Insurance System, The creditor is required to disclose to debtor A security that help creditor ensure repayment of whatever charges are involved in the extension of the loan in the event of default → Collateral, credit. 'True'. Credit involves futurity. 'True'. They lend money to individuals at a very exorbitant rate → Loan sharks, Extension of credit is a right and privilege of any person in a business industry. 'False'. Their loans are exclusive to private members only. → Social Security System, There is no element of risk in granting credit to qualified individuals. 'False'. This loan arrangement pays a portion of the interest This refers to the personal integrity of the borrower and other finance charges at the time the loan is that includes his personal habits, attitudes, granted. → Discount loan, lifestyles, or vices as part of the creditor's evaluation if borrower be granted a loan. Character This refers to release of loan proceeds in a one time instance. → Lump sum, A type of credit with the arrangement of which is dependent on any specific item that would serve as A characteristic of credit said to be based on trust security, like property, real or personal, tangible or → Fiduciary, intangible which will be set aside to guarantee payment of the obligation. Secured credit A loan by a bank to its own client without a third party like dealers or other middle handlers. → Credit card helps the cardholder enjoy the Direct credit, purchase without interest for a maximum of 51 days. 'True'. This practice of payment is done in a staggered mode in an agreed time and amount. → Installment This evaluation of granting credit to an individual is based on his managerial ability, if he is responsible, mature, and or competencies that can be used to determine his ability to pay. Capacity A characteristic of credit concept in which it is surrounded by so many dangers and uncertainties. Risk This credit arrangement of repayment of the loan will be made at one (1) single instance at an agreed time in the future. Lump sum It refers to the openness and willingness of the creditor to exposed to uncertainties by giving out money or property to the debtor in exchange for a promise that the same will be pain in the future. Confidence Credit may lead to inflation. 'True'. Their loans granted are on the personal properties of the individuals as collateral → Pawnshops,
They grant credit to help rationalize the developing
regions for agricultural projects in the countryside. → Rural Banks,
This financial institution is owned and controlled by
its members to promote thrift and other financial services to its members only. → Credit unions,
A credit usually intended for financing high capital
projects like mining, logging, fishing, etc. → Industrial credit,
Their credit is for the purpose of foreign shipment