Question 1

How many main parts are there in the course of Commercial Bank? What are they?
Question 2
Fill the gap
1. Financial Market is a ... in which financial assets can be purchased and sold
2. Financial Institutions (FIs) are … between surplus units and deficit units
3. … are typically defined by having transparent pricing, basic regulations on trading, costs and fees and
market forces determining the prices of securities that trade.
4. Equities, bonds, currencies and derivatives are …
5. Financial Asset is a/an … deriving value from a contractual claim, traded on the ….
6. Financial Asset is … liquid than tangible asset
7. The Purpose of Financial Market is to facilitate the flow of money and/or capital from … entities to
… entities
Question 3
Match 10 following ideas with 2 entities: SURPLUS & DEFICIT
1) A person or entity that spends less than it currently earns
2) Borrow money from others
3) Run down net assets
4) Issue financial claims
5) Invest money or lend to others
6) A person or entity that spends more than it currently earns
7) Take on financial obligations
8) To raise money in the least expensive and most efficient way
9) To ensure the best possible return on investment
10) Increase net assets
Question 4
How many paths to transfer funds are there in Financial System? Compare them?
Question 5
Who are Market Participants? Distinguish among them?
Question 6
(1) What are Credit Institution?
(2) Banking activities mean monetary business activities and banking services, with regular operations
as:
-
-
-
(3) "Bank" means a Credit Institution permitted to conduct … banking activities and other related
business operations
(4) Compare three major types of banks under Vietnamese Law on Credit Institutions issued in 2010?
(5) How does Commercial Bank make profit?

Credit
Institutions

Non-bank
Microfinance People's
Banks Credit
Institutions Credit Funds
Institutions

Commercial Cooperative
Policy Banks
Banks Banks

Question 7
Explain the intermediation role of CBs?
Suggestion: What if Commercial Bank does not exist? Why is level of fund flows low if Commercial
Bank does not exist? Is there a Substantial price risk if Commercial Bank disappears? Why? Is there any
cost reduction if the importance of Commercial bank exist? Explain via diagrams.
Question 8
True or False? Shortly explain
1) FIs act as intermediaries between lenders and borrowers
2) Direct Financing The transfer of funds from ultimate savers to ultimate borrowers with an
intermediary
3) Operational risk is inadequate or failed internal processes, people and systems, or from external
events
4) Credit risk is bank's difficulty in obtaining cash at a reasonable cost from either the sale of assets
or new borrowings
5) Banking is about risk taking and risk management
6) Banks are highly leveraged
7) Commercial Banks take risk to make profit
8) Interest rate risk is non-payment or delayed payment on loans and securities
Question 9
Choose a joint-stock CB in Vietnam banking system and discover its banking services?