Business Finance (ABM 004)

Student Activity Sheet #5

Name: Trisha rninmari A False

_________________________________________________________________ Class number: _______
Section: ____________
CB Schedule: ________________________________________ Date: July
________________
21,2022

LESSON TITLE: Identifying the Types of Financial Markets, Materials: 1.

Financial Instruments and Financial Institutions {List materials that students will
need to complete this lesson.}
Lesson Objectives:
At the end of this day, I should be able to: References:
Cayanan, et al, Teaching Guide for
1. Describe the different types of financial markets, financial Senior High School Business
instruments and financial institutions Finance, Quezon City, Commission
on Higher Education, 2016

1.

“ Try playing some music while doing the exercises on this module”

Let’s begin the Day 5 by answering the pre-test below. This is to activate your prior knowledge in this
lesson. If you answered some or all incorrectly, do not worry. This just means that you have little or no prior
knowledge about the lesson.

A. LESSON PREVIEW/REVIEW

Instruction: Encircle the letter of the best answer to each question.

1. Which is NOT a financial asset?

a. Cash b. Stocks c. Bank Deposits d. Property
2. Bank of the Philippine Island is an example of___________.
a. Rural Bank b. Commercial Bank c. Central Bank d. Government Bank
3. Which is a financial institution?
a. Social Security System c. Security Exchange Commission
b. Philippine Stock Exchange d. Philippine Investment Management
4. Which is a type of security that signifies proportionate ownership in the issuing corporation?
a. Bonds b. Stocks c. Contribution d. Deposits
5. An example of debt instrument is___________.
a. Bonds b. Common Stock c. Preferred Stock d. Retained Earnings

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Activity 1: What I Know Chart,

I guess you are now ready to list the things you have know about management. Try answering the
questions below by writing your ideas under the first column What I Know. It’s okay if you write key
words or phrases that you think are related to the questions. Go on!

What I Know Questions: What I Learned (Activity 4)

.

1. What is the difference between

a financial instrument and a
financial institution?

2. What are the most common

types of financial instruments?

3 What are the different types of

financial instruments?

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B.MAIN LESSON

Activity 2: Content Notes

The Financial System

Secondary Market
Capital Market

Financial Market Primary Market

Money Market

Commercial Banks
Insurance
Companies
Financial Mutual Funds
Institutions
Pension Funds
Other Financial
Institutions

Financial
Instruments Financial Assets
Equity Instruments
Financial Liability

To understand further the components of financial system, read the following and write your questions on
the left column for clarifications.
Pre-Printed Notes
Questions Notes:
Financial Instruments (definition, Day 4)
 When a financial instrument is issued, it gives rise to a financial asset on one
hand and a financial liability or equity instrument on the other.
Financial Assets:
 Cash
 An equity instrument of another entity.
 A contractual right to receive cash or another financial asset from another entity.
 Notes Receivable
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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

 Loans Receivable
 Investments in Stocks
 Investments in Bonds
Financial Liability
 Notes Payable
 Loans Payable
 Bonds Payable
Debt and Equity Instrument:
Debt Instrument- generally has fixed returns due to fixed interest rates.
 Bonds- an instrument of indebtedness.
 Treasury Bond and Treasury Bills-issued by the Philippine government
 Corporate Bonds- issued by the publicly listed companies.
Equity Instruments- have varied returns based on the performance of the issuing
company.
 Stocks- an instrument of ownership
 Preferred Stocks- has priority over a common stock in terms of claims over the
asset of a company.
 Common stocks- the holders of these are the real owners of the company. If the
company’s growth is spurring, the common stockholders will benefit on the
growth.
Financial Market (definition, Day 4)
 Money Market are a venue wherein securities with short-term maturities (1 year
or less) are sold.
 Capital Market- securities with long term maturities are sold. The key capital
market securitties are bonds and both common stock and preferred stocks.
 Primary Market- Financial market in which securities are initially issued; the only
market in which the issuer is directly involved in the transaction.
 Secondary Market- Financial market in which preowned securities(those that
are not new issues) are traded.
Financial Institutions (definition, Day 4)
 Commercial Banks- individuals deposit funds at commercial banks, which use
the deposited funds to provide commercial loans to firms and personal loans to
individuals.
 Insurance Companies- pool the payments of individuals and invest the
proceeds in various securities until the funds are needed to pay off claims by
policyholders.
 Mutual Funds-owned by investment companies which enable small investors to
enjoy the benefits of investing in a diversified portfolio of securities purchased
on their behalf by professional investment managers.
 Pension Funds- receive payments from employees and invest the proceeds on
their behalf.
 Other Financial Institutions- include pension funds like Government Service
Insurance System(GSIS) and Social Security System(SSS), investment banks,
credit unions, among others.

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Activity 3: Skill-building Activities

A. Instruction: Below is a figure showing how financial institutions serve as intermediaries for
suppliers and users of funds based from the illustration of Gitman and Zutter, 2012. Analyze the
illustration and write which particular financial institution is referred. Choices are provided below.

Mutual Funds Pension Funds Credit Unions

Insurance Companies Commercial Banks Government Institutions

Deposits
1. Commercial
Banks
Individual Investors

Purchase of 2. Mutual funds

Shares/Pooling of Funds

FIRMS
Purchase of Debts and equity Securities
Policy Holders Premiums insurance
3.
companies

Employees and Employees and 4. Pension

Employers Employers funds
Contribution

B. Instruction: Let us try to summarize your learning’s of the lesson by considering the situation, “
Luck is on your side this year and you won P 20 million in the lottery, how will you spend such
amount of money? Create a spending plan for your winnings.”

Suggestions: How much?

Investment What to invest? 8 million
it on
Investing in active brands so
spending
makes that
something that i can get profits from
your money moving them

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Savings Where to save? 5 million

saving can benefit me
Allocate a budget to be deported
in
in a lot
of ways a
raving account bank or
passbook
House and Lot What type of house? How many square meters?
be 7 million
this keeps me
stable with my shelter
modem type
of house Lot area :/zosqm
.

Floor area :
300am
Others Please specify the reasons

Total P20,000,000.00

Activity 4: What I Know Chart,

In activity No. 1 You answer what you know about the topic. Now, that you have a clearer understanding
of today’s concept, time to complete the chart by answering the last column of this activity This time write
what you have learned.

What I Know Questions: What I Learned (Activity 4)

1. What is the difference between

a financial instrument and a
financial institution?

2. What are the most common

types of financial instruments?

3 What are the different types of

financial instruments?

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Activity 5: Check for Understanding

Instruction: I want you to read and analyze the statements and determine if they are true or false. Write T
if it is true and F if false.
T
____1. Stock is an example of equity instrument.
____2.
T Policyholders are shareholders of the company.
____3. Mutual fund is a company that pools money from many investors and invest the money in securities.
T
T
____4. Cooperatives are financial institutions.
____5.
F Money market is a venue where long term securities are sold.
____6. Treasury bills are debt securities.
T
F
____7. Bangko Sentral ng Pilipinas is not part of the financial system.
____8.
T Pension fund is a fund from which pensions are paid, accumulated from contributions of government
employees only.
T
____9. Common stocks have priority over the preferred stocks in terms of claims over the asset of the
company.
____10. Corporate bonds are issued by publicly listed companies
T

C. LESSON WRAP-UP

Activity 6: Thinking about Learning

You have reached the end of this lesson! Congratulations and thank you for working hard to learn this
lesson. As you end this lesson, put a check mark beside the learning target if you have learned it very well.

Self- Evaluation on Achieving the Learning Target

Describe the different types of financial markets, financial instruments and financial institutions
_________

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

FAQs

1. Why financial instruments are important?

________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________-

2. What is a primary financial instrument?

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________

KEY TO CORRECTIONS
{*Teacher lists answers to activities #3 (+) and #5

Activity 1
1.D
2.B
3.A
4.B
5.A

Activity 3:

1. Commercial Banks
2. Mutual Funds
3. Insurance Companies
4. Pension Funds
Activity 5

TEACHER-LED ACTIVITIES
{These are standard instructions for teachers.}
A. If this session happens to be a face-to-face, in-classroom learning session:
1) Collect completed work in the SAS.

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 Business Finance (ABM 004)
Student Activity Sheet #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

2) Allocate your contact time with students to individual or small group mentoring, monitoring, and
student consultations.
3) You may administer summative assessments (quizzes, demonstrations, graded recitation,
presentations, performance tasks) during face-to-face sessions.
4) You may also explore supplementary activities that foster collaboration, provided that social
distancing is observed.
5) You may provide supplementary content via videos, etc.

It is important to remember that students who cannot make it to face-to-face, in-classroom sessions
for health and safety reasons, should not be given lower grades for missing in-class activities and
should be given alternative summative tests.

B. If this session happens to be an at-home learning session for the students:

1) Check and grade collected SAS and other input from students.
2) Schedule phone calls/virtual calls/virtual chats to individual students or small groups of students
to monitor work, provide guidance, answer questions, and check understanding.

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 Course Code: ABM 004
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

This document is the property of PHINMA EDUCATION