Q3 SOC SCI QE chapter 13

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:

1. Medium of exchange
2. Standard of Value
3. Store a value
4. 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:

1. banks
2. nonbanks

Entities that engage in lending of funds obtained in the form of deposits.

Banks

3 Main types of banks:

1. Commercial
2. thrift
3. rural

In the Philippines, there are __ types of charter banks.

6

6 Charter banks of the Philippines

1. Universal banks
2. commercial banks
3. thrift banks
4. cooperative banks
5. rural banks
6. 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:

1. Banco de Oro
2. Metrobank
3. Land Bank
4. Bank of the Philippine Islands
5. 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