Assessment Task #1 – SHORT RESPONSE ESSAY

Directions: Answer the following questions with a maximum of five sentences.

What is finance and its primary goal?

 Financial management is a process that enables a business to plan, direct, organize,
monitor and control its current and future financial resources and events. It involves
applying the basic principles of management in financial activities such as purchases,
sales, capital expansion, inventory valuation, financial reporting, and profit distribution.

How do you think financial institutions helps businesses on its day-to-day operations?
 Managing funds is a critical component of today's business, which means you'll have the
opportunity to work for a solid and fulfilling career in the financial management
profession. Financial planning aids in determining what to spend, when to spend it, how
to spend it, and how much to spend based on available cash. Small enterprises and
entrepreneurship are on the rise in today's commercial sector, which implies more roles
for financial managers will become accessible. A good firm cannot survive without an
eligible individual in charge of managing the inflow and outflow of funds.

Why is good financial management important?

 Your basic understanding of money may be that it is a tool that you use to purchase items
that you require and desire. That is, of course, correct. However, understanding the true
value of your money and how it works entails more than simply the fundamentals.
Reading financial management blogs, such as those on Money Task Force, can help you
improve your financial literacy and gain a better grasp of your finances. It's crucial to be
financially educated and have a solid personal finance management plan in place if you
want to completely comprehend your finances.

Assessment Task #2 - APPLICATION

Financial institutions are intermediaries that plays a vital role in nation
building. They source funds for businesses to engage in projects that are
profitable, maximize shareholder wealth, and build communities. Is there a project you have in
mind that is worthwhile, has potential to earn profits, and will benefit your community in the
long-term? List down those projects (3 or more). What financial institution can help you
achieve your dream of a sustainable business for your shareholder or community? How can it
helped you make your dream project possible?

1.Food Services
2.Cleaning Services
3.Healthcare Products
 The financial institutions would be the central bank, which is required to facilitate more
money and business transactions.
 By managing the amount of money in circulation, central banks have an impact on
economic growth. To achieve this purpose, they have three monetary policy tools at their
disposal. They began by establishing a reserve requirement. It's the amount of cash that
member banks are required to have on hand each night.