Too much or too little money supply is bad for the economy. (T or F)
T
It is anything which the market accepts as payment for goods and services.
Money
This was the most popular commodity in ancient times.
Metallic money
They struck the first metal coins in 800BCE.
Lydians
__ and __ were the most powerful form of money during the age of mercantillism.
Gold, silver bullions
The coins’ value was equal to their ___ value.
intrinsic
This developed in the late middle ages because of the need of merchants to travel conveniently and safely.
Paper money
Negotiable instruments for the payment of cash.
Checks
It is the short-term loan incurred from the issuing credit card company.
Credit card payment
Functions of money:
Medium of exchange
Standard of Value
Store a value
standard of deferred payment
This is a form of wealth because it has a stored value.
Money
It consists of currency in circulation plus peso demand deposits.
Narrow money
Made up of coins and paper bills issued by the Banko Sentral ng Pilipinas less cash on hand of the National Treasury and the DMB.
cash
Are savings and checking accounts help by the banks.
Demand deposits
Are deposit payable on demand and transferable by check.
Checking accounts
Checking accounts are also known as ___.
Current accounts
It is an interest-bearing bank account that has a date of maturity, such as fixed deposits and recurring deposits.
Time deposit
They are high-interest-yielding term deposits.
Fixed deposits
They are special kind of term deposit offered by banks.
Recurring deposits
They comprise the monetary sector of the economy
Financial institutions
Their main function is to facilitate and regulate the flow of money supply in the economy.
Financial institutions
Types of financial institutions:
banks
nonbanks
Entities that engage in lending of funds obtained in the form of deposits.
Banks
3 Main types of banks:
Commercial
thrift
rural
In the Philippines, there are __ types of charter banks.
6
6 Charter banks of the Philippines
Universal banks
commercial banks
thrift banks
cooperative banks
rural banks
islamic banks
Are institutions that offer all services of the banking system.
Universal banks
These are the biggest banks in terms of assets and the leaders in consolidated resources, deposits, and customenr loans.
Universal banks
The top five and the only trillionaire universal banks in the country:
Banco de Oro
Metrobank
Land Bank
Bank of the Philippine Islands
Philippine National Bank
Are the biggest lenders of investment funds.
Commercial banks
Unlike universal banks, they have limited services and perform a function they are designed for.
Commercial banks
Most of the universal banks started out as ___ .
Commercial banks
Are composed of savings and mortgage banks, stock savings and loan associations, and private development banks.
Thrift banks
Are established to accelerate countryside development.
Rural banks
Are financial entities that are organized by the members on a cooperative basis.
Cooperative banks
The customers of the banks are also their owners.
Cooperative banks
Cooperative banks are also called as ___.
Credit unions
Are financial institutions whose banking activities comply with sharia and its practical applications.
Islamic banks
“Sharia“ means
Islamic law
The only Islamic bank in the Philippines
Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP)
Are financial entities that do not offer full-scale bank services.
Nonbanks
Based on 2018 data, there are ___ nonbank financial institutions in the Philippines.
6267
Are very popular to Filipinos and also considered as the banks of the poor.
Pawnshops