FINMAR QUIZ MIDTERM

1.) Why is there a need for an efficient financial system for a country to have a strong economy?
Ans. There is a need for an efficient financial system for a country to have a strong economy
because it will enable the economy to bloom in the field of calculating risk and amends things to
be done for the growth and better management of the country. It caters the financial aspects of
the country which runs significant in the economy to have healthy financial system. Investors
and capitalist functions better with good service of technologies and good communication by
this excellent and accountable finance program showcase better source of fund in the well-
function present for the blossom future. Hence financial market and institutions must be in the
filled with liquidity and solemn bond as to a body of secret menu efficient Financial system.

2.) Explain the basis flow of funds through the financial system?
Ans. The basis flow of funds through the financial system efficiently it move along indirect
finance and direct finance. Financial Markets and Financial Institutions it is where you can find
stocks, bonds shares to invest either sell or buy. The Central Bank and Other Financial
Regulators is held by the government to serve as safety regulators to monitor the different
financial activities in credit and the availability of the money. Financial Instruments, factors that
can be source of funds for borrowers. Lenders saver to borrower spenders, financial markets
sources of funds and spenders of fund. In touch with government and securities can either at
double way in earning funds and spending funds it shows optimistic movement of money in the
market and government running inside the economy.

3.) Explain how the following agencies regulate the financial system of the Philippines.
 Bangko Sentral ng Pilipinas (BSP) regulate the financial system of the Philippines by
formulating and implementing monetary policy aimed at influencing money supply, in
the operations of non-bank financial institutions and finance companies.
 Securities and Exchange Commission (SEC) regulate the financial system of the
Philippines by an agency that charge in financial sectors which secure the supervision of
the corporate sector and the investing public.
 Insurance Commission (IC) regulate the financial system of the Philippines by monetary
authority of service and credit granting businesses, payment system operators
 Philippine Deposit Insurance Commission (PDIC) regulate the financial system of the
Philippines by securing the continuing depositors security and insurance which help
maintain stability in the field of financial system.
4.) How do you maintain financial stability in your life?
Ans.