FINP4 be required to pay taking out inflation into
(MONETARY POLICY AND CENTRAL
BANKING REVIEWER)
Financial System - consists of institutional
units and market that interact typically in
complex manner for the purpose of
mobilizing funds.
Bangko Sentral ng Pilipinas - regulatory
body that maintains the safety and stability
of the Philippine Financial System in
general and Philippine Banking System.
System - a group of units performing for a
common purpose and organized set of
doctrines, ideas, or principles with a set of
procedures.
The Financial Intermediaries- component of
the financial system stands between
lenders and borrowers and collect margin
for the intermediary gain.
The Financial Instrument or assets- are
created or issued by the ultimate borrowers
and financial intermediaries to satisfy the
financial requirements of the various
participants.
Money as a medium of exchange- the basic
or fundamental purpose for which money is
used an intermediary.
The financial market- institutional
arrangements and conventions that exist for
the issued and trading (dealing) of the
financial instruments/ Arrangements and
connections for financial instrument
issuance and trading.
Money as a unit of account- when money
serve as the measuring tool and the unit
used to represent and quantify the growth
of other commodities and services in terms
of money.
Nominal Interest Rate- market rate of return
that an investor or borrower will receive or
account.
Financial Claims- An idea that entitles a
creditor to receive payments or payments
from a debtor in circumstances specified in
a contract between them or that specifies
certain rights or obligation between two
parties.
June 15, 1948- Republic Act 265 or the
Central Bank Act were enacted into law.
July 03, 1993- The BSP was established to
replace the old Central Bank as the
country's Central Monetary Authority.
Pres. Elpidio Quirino - the President of the
Philippines who signed RA 265 also known
as the The Central Bank Act.
President Jose P. Laurel- Introduce the
Mickey Mouse Money made by the
Japanese Government.
Hon. Miguel Cuaderno- the first governor of
the BSP.
The price discovery- an establishment of
the price of the money in the financial
market which is the rate of interest on debt
instruments and the prices of share
instruments.
The Ultimate lenders and Borrowers- non
financial economic units that undertake the
lending and borrowing process.
The Financial Institution- provide a wide
range of deposit, lending, and investment
products to individuals or business as well
as to generate capital funds internally and
publicly.
Credit Cooperative- A non banking
institution that creates a common pool of
funds in order to provide financial
assistance and related financial services to
its members for productive and provident Brokers and Dealer- Broker is the one who
purposes. will buy and sell securities for their clients

Money as the standard of deferred Investment Houses- any enterprise which

payments- deferred payments which are
made somtime in the future and debts are
usually expressed in terms of money of
account.
Money as store of value- It serves as store
value of goods in liquid form.
primarily engages in the underwriting of
securities
Commercial Bank- institution that accepts
deposits provides checking account
services, make various loans, provides
basic financial products to individual and
small business such as certificates of
deposit and savings accounts

Non Stocks Savings and Loan Association -

Pawnshops- refer to an entity engaged in
a non banking institution that accumulates
the business of lending money on personal
its members savings and uses such
property that is physically delivered to the
accumulations for loans to members to
control and possession operator of loan
service the needs of households by
collateral
providing long term financing for home
building, development and personal
finance.

Investment Companies- A corporation or

thrust through which individuals invest in
diverse, professionally managed securities
portfolios by pooling their funds with those
of other investors.

Insurance Companies- non banking

institutions which provides investors with
funds to cover expenses that may arise as
a result of an unforeseen event such as
death

Financing Companies- A non banking

Institution that engages in specialized forms
of financing such as direct lending or
discounting of factoring commercial papers
or accounts receivable, buving and colling
contracts.

Universal Bank- type of banking institution

which combines the 3 main services of
banking under one roof namely whole sale
banking, retail banking and investment
banking