Pangasinan State University

Lingayen Campus
College of Business and Public Administration

Name: Cyrell Andrea DG. Bustarde

Section: 2-FM B
Task: SG 2 Learning Activities
LEARNING ACTIVI

ACTIVITY A

True or False. Write true if the statement is correct. Write false if otherwise.

1. Financial system enables lenders, investors and borrowers to transfer of money among
themselves. TRUE
2. Financial System could only be defined at an organizational and regional level but not in the
international level. FALSE
3. Financial institutions are at the core of the financial system, giving individuals the ability to save
and invest whenever and wherever they want. TRUE
4. Capital markets take care of those financial assets that have maturity period of more than a year
whereas money market handles short-term financial assets. TRUE
5. Secondary markets handle new issue of securities in contrast primary markets take care of
securities that are presently available in the stock market. FALSE
6. Liquidity allows for easy buying and selling of assets when needed. TRUE
7. Protecting investors from various financial risks through insurances and other types of contracts
is done through the payment system. FALSE
8. Linking savers and investors is known as capital formation . TRUE
9. Financial instrument is any contract that gives rise to a financial asset of one entity and
financial liabilities or equity instruments to another entity. TRUE
10. Money market is formal. TRUE

ACTIVITY B
Categorization. Determine if each of the following belongs to what component of the financial system.
Write FIN for Financial Institutions, FM for Financial Markets, FS for Financial Services, FIT for Financial
Instruments or M for Money in the blank space provided.
11. Bangko Sentral ng Pilipinas - FIN
12. Giving credit rating to different business institutions- FS
13. Primary Market - FM
14. Certificate of Deposit - FIT
15. Philippine Stock Exchange -FM
16. Capital Market - FM
17. Banco De Oro - FIN
18. Treasury Bill - FIT
19. Offering insurance to business buildings - FS
20. Php1,000 bill. - M