A credit unions is another type of savings institutions.

 *

True

A stable economy grows faster than an unstable one *

True

A financial relationship created between suppliers and users of short-term funds *

Money Market

A portion of the financial market which deals with loans on residential, commercial
and industrial real estate, and on farmland. *

Mortgage market

A market that enables suppliers and users of long-term funds to make

transactions. *

Capital Market

A portion of the financial market which the securities are traded for immediate
delivery and payment. *

Spot Market

An organized forums in which the suppliers and users of various types of funds can
make transactions directly. *

Financial Market

A government securities which mature beyond one year. *

Treasury bonds

A portion of the financial market which the market involved in loans on autos,
appliances, education, and travel. *

Consumer Credit market

A government securities which mature in less than a year. *

Treasury bills

A portion of the financial market which where buyers and sellers of securities
negotiate with each other regarding price and volume, either directly or through a
broker or dealer. *

Negotiation market

A savings certificate entitling the bearer to receive interest. *

Certificate of Deposit

A short term debt instrument issued by a firm that is guaranteed by a commercial

bank. *

Bankers Acceptance

 A loan to a company or government that pays investors a fixed rate of return over
a specific timeframe.. *

Bonds

Any contract that evidences a residual interest in the assets of an entity after
deducting all liabilities *

Equity Instrument

A financial security that generally has a longer term than a bill, but a shorter term
than a bond. *

Notes

A security that signifies ownership in a corporation. *

Stocks

A short term debt obligation backed by government with a maturity of less than 1
year. *

Treasury bills

Any contract that generally have fixed returns due to fixed interest rates. *

Debt Instrument
 True

A ______ is one financial intermediary handling individual savings. It receives

premium payments that are placed in loans or investments to accumulate funds to
cover future benefits. *

life insurance company

A ______ is set up so that employees of corporations or governments can receive

income after retirement. *

pension fund

By definition, the money market involves the buying and selling of *

short-term funds

Application/Computation
0 of 10 points
Simple (Interest = P x r x T) and
Compound Interest (Interest = ( P x (1+ r/m ) (T x m) ) - P) m=compounding frequency

Your brother borrowed from your neighbor to buy a new mobile phone. The
neighbor charged 11% for the borrowed amount payable after three years at a total
amount of ₱7,000. *

···/2

P2310

Your father obtained a car loan payable in lump-sum in 5 years at a total amount of
₱800,000 with an annual rate of 15%. *

···/2

P600,000

 
 

Your sister placed her graduation gifts in a special savings account that provides
an interest of 2% for 8 months. She expects to get ₱25,000 after 8 months. *

···/2

P24,505.58

Your mother is expecting to get ₱18,000 in two years’ time after investing in
government securities that yield 6% annually. *

···/2

P16,954.30

You deposited your savings from your daily allowance in a time deposit account
with your savings bank at a rate of 1.5% per annum. This will mature in 6 months
and you expect to get ₱5,000 at the end of the term. *

···/2

P4925.65

T-bills Computation
0 of 10 points
For each of the following Treasury Bills, calculate the discount basis yield and the investment yield:

Compute for the discount basis yield of T-bills with the face value of Php 100..
( Answers should be up to 3 decimal point) *
A.) 0.030 = 3% B.)0.030 = 3% C.)0.033 = 3.30% D.) 0.032 = 3.20% E.) 0.031 = 3.10%

A mutual fund is a type of financial intermediary that obtains funds through the sale
of shares and uses the proceeds to acquire bonds and stocks issued by various
business and governmental units. *