BAFM 103 Quiz 2

Financial intermediaries rendered by the financial intermediaries bridge the gap between the back of knowledge on the part of investors and increasing sophistication of financial instruments and markets.

• TRUE

• FALSE

Land Bank of the Philippines is first bank to act as the central bank in the Philippines.

• True

• False

Capital market is a market for short-term securities with a maturity of one year or less money market is a market for long-term securities, that is, securities having a maturity period of one year or more.

• TRUE

• FALSE

Central banks are the financial institutions responsible for the oversight and management of some other banks.

• TRUE

• FALSE

The Philippine Bank of Communications is the first bank with genuine Filipino private capital. However, it was temporarily closed at the outbreak of WWI.

• TRUE

• FALSE

Universal Banks do not perform the functions of a commercial bank anymore.

• True

• False

Investment companies, traditionally known as mutual fund companies, pool funds from individuals and institutional investors to provide them access to the broader securities market.

• TRUE

• FALSE

Both PNB and Land Bank are universal or expanded commercial banks.

• True

• False

Insurance company is an example of banking financial intermediary.

• True

• False

Products offered at investment banks include checking and savings accounts, certificates of deposit (CDs), personal and mortgage loans, credit cards, and business banking accounts.

• TRUE

• FALSE