Treasury Management and Financial Markets

Flashcards covering key concepts from treasury management and financial markets.

Treasury Management

The process of overseeing a company's financial resources to achieve strategic objectives.

Public Sector

The government or governmental organizations.

Private Sector

Companies or businesses that are privately owned.

Liquidity Ratio

A financial ratio that shows the ability of a company to cover its short-term obligations.

Solvency Ratio

A key metric used to measure a company’s ability to meet its long-term debts.

Profitability Ratio

Indicates a company's ability to generate profit relative to sales, assets, or equity.

Activity Ratio

Measures how efficiently a company utilizes its assets to generate sales.

Debt Ratio

A financial ratio that shows the proportion of a company's assets that are financed by debt.

Department of Finance (DOF)

The primary government agency responsible for managing the financial resources of the state.

Department of Budget and Management (DBM)

The agency responsible for formulating and implementing the national budget and ensuring efficient use of public funds.

Commission on Audit (COA)

An independent body established to examine and audit the accounts of government funds.

Bureau of the Treasury (BTr)

The principal custodian of the national government's financial assets.

Liquidity

The availability of liquid assets to a market or company.

Money Market

A sector of the financial market in which financial instruments with high liquidity and short maturities are traded.

Capital Market

A financial market for buying and selling long-term debt or equity-backed securities.

Forex

The market in which currencies are traded.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Debt (Bond) Market

A financial market in which participants can issue new debt or buy and sell existing debt securities.

Stock Market

A public market for buying and selling shares of companies.

Foreign Exchange Market

A decentralized global market for trading national currencies against one another.

Financial Intermediaries

Institutions that provide services as middlemen between savers and borrowers.

Primary Market

Where new securities are issued and sold for the first time.

Secondary Market

Where previously issued securities are bought and sold.

Securities

Financial instruments that represent an ownership position or a creditor relationship.

Market Efficiency

The extent to which stock prices reflect all available, relevant information.

Disclosure

The action of making new or secret information known.

Depository Institutions

Financial institutions that accept deposits from the public.

Nondepository Institutions

Intermediaries that do not accept deposits but provide financial services.

Pension Funds

Investment pools that collect and invest funds on behalf of employees for retirement benefits.