FinMAn & StratCostMan

Which of the following represents the financial intermediaries that facilitate the trade of financial instruments?

• Financial Intermediaries

• Brokers and Dealers

• Regulatory Environment

• Fund Managers

Which of the following BEST describes a financial instrument?

• With the flow of financial instruments, money is created.

• It ensures the compliance of transactions that occur within the financial system with the laws and regulations imposed on the actors and elements that play within.

• It is the process of determining or valuing the financial instrument in the market.

• It is the medium of exchange of a party's contractual obligation, where such a contract can be traded.

Which of these occurs when the issuer offers the securities to a single investor, an institutional buyer, or a group of buyers?

• Limited Public Offer

• Auction

• Public Offering

• Tap Issue

Which scenario BEST demonstrates an English auction?

• When issuers are open to receive bids for their securities at all times.

• The seller begins the sale at a high price.

• The prospective buyers commence the auction by submitting an initial bid price.

• Where bidders submit sealed bids to the seller.

Which of these describes the domestic market?

• Where financial instruments that have a long-term maturity or will mature beyond one (1) year from the date of issuance are traded.

• The issuers who are considered residents in a country issue securities and afterward trade them inside their country.

• The issuers who are residents of a country issue securities and subsequently trade them in that country.

• Where financial instruments with short-term maturity or redeemed in one (1) year or less from the date of issuance are traded.

Which of the following sectors of the Bangko Sentral ng Pilipinas (BSP) conducts capital management, financial services, information technology support, etc.?

• Corporate Services Sector (CSS)

• Financial Supervision Sector (FSS)

• Monetary and Economics Sector (MES)

• Currency Management Sector (CMS)

Which of the following BEST describes the functions of the Security and Exchange Commission (SEC)?

• Supervises of financial institutions, and it exercises regulatory powers.

• Responsible for issuing licenses to insurance agents, general agents resident, etc.

• Provides advisory, actualization, and post services to the investors.

• Administers oversight on the corporate sector, capital market participants, securities, etc.

Which of the following risks/social factors is BEST addressed through financial institutions' compliance to minimum technical standards and disclosure of relevant information to reflect integrity and smooth operations?

• Social objectives

• System risk

• Efficiency enhancement

• Consumer protection

The following are the functions of the Bangko Sentral ng Pilipinas (BSP), EXCEPT:

• It regularly supervises the financial institutions and over non-banking institutions performing quasi-banking functions.

• It has the sole responsibility of issuing notes and coins representing the national currency of the Philippines.

• Provides discounts, advances, and financial support to the general public while maintaining its liquidity.

• It formulates and issue monetary policy aimed at influencing money supply to maintain price stability.

Which of the following BEST describes the Capital Adequacy Ratio (CAR)?

• It refers to the ratio of the total population to the total number of domestic banking offices.

• The ratio of total qualifying capital to risk-weighted assets computed under the risk-based capital adequacy framework.

• Accounts less than 1% GP required, the deficiency shall be recognized by appropriating the RE account.

• It refers to the ratio of the total number of domestic banking officers to the total number of cities/municipalities in the Philippines.