Reference no: EM133051039

FINANCIAL MARKET TRUE OR FALSE

1. Regulation was designed to set rules and guidelines to be followed that is designed to ensure balance among the individuals, firms and/or citizens as the case maybe.
2. Public Offering occurs when securities are offered for sale to the general public.
3. Tap Issue is usually used for issuance of treasury bills, bonds and other securities issued by the government and are commonly executed exclusively with market makers. Auction is a method that occurs when issuers are open to receive bids for their securities at all times.
4. Characteristics for an Effective Payment System is that it should have (1) standard methods of transmitting payment message; (2) agreed means of settlement; (3) common operating procedures and rules
5. The family and community sector are composed of individuals and families, including families serving charitable, religious and non-profit organizations.
6. Government role is to set standards to regulate and ensure that information provided in the market are fair, consistent, and conservative.
7. Aside from financial intermediaries, there is a significant number of participants who interact with each other to buy or sell different kinds of financial instruments.
8. The financial system serves as the main structure for making payments for any goods, service or securities that are purchased.
9. In a dealer market, the buyer and the seller of the securities are brought together by a broker and the trade occurs at that point. In a broker market, the buyer and seller are not brought directly together by a third party.
10. Public Utility Research Center in the University of Florida defined regulation is a process whereby the designated government authority provides oversight and establishes rules for firms in an industry.
11. There are two main economies of scale that are optimized by financial intermediaries: transaction costs and research costs.
12. Money is expected to be regulated somehow to enable the sovereign to have control to its economy.
13. In the emergence of the e-banking system that serves as the platform of the payment system facilities. The payment system may facilitate the settlement of the financial market transaction.
14. Systemic stability is a challenge or threat whereby it arises where a segment or firm was not able to meet its commitment because of their failure to address the risks of the market.
15. Bangko Sentral ng Pilipinas is the top financial regulator in the Philippines. Together with it are: Philippine Securities and Exchange Commission, Insurance Commission, and Board of Investments.
16. Diversification is the economic function exercised by financial intermediaries which converts more risky assets to less risky assets through sharing of risks. One good example of diversification is the activities performed by mutual funds.
17. Assurance Commission mandated by virtue of Executive Order No. 192 s. 2015 to ensure enforcement of the provisions of the Insurance Code or Republic Act 10607, i.e. to regulate and supervise the insurance, pre-need, and health maintenance organization industry. It is governed by Department of Finance that supervises and regulates the operations of life and non-life companies, mutual benefit associations, and trusts for charitable uses.
18. Solvency of ultimate lenders is enhanced through the presence of financial intermediaries. For example, a borrower receives money from an ultimate lender through a vehicle like loan, the lender's cash position is zero up until the loan matures and the lender receives the payment.
19. Finder's fee are costs incurred to look for financial instruments that can be purchased or sold by a party.
20. Contractual savings institutions are financial intermediaries that obtain funds at periodic intervals based on an existing contract. Unlike depository institutions, contractual savings institutions can project more accurately how much money they need to pay in the future (in the form of benefits promised).