Capital Market - Chapter 1
It describes collectively the financial markets. A set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds.
Financial System
refers to the collectively financial transfer mechanisms that facilitate the movement of money and profits between and among financial system participants throughout the world.
Multinational Financial System
are generally describd as the group that receives income majority of which typically comes from wages and salaries.
Household or Consumers
are the firms that bridge the gap between surplus unity (SUs) or investors lenders and deficit units (DUs) or borrowers.
Financial Institutions/Intermediaries
are business other than financial institutions be intermediaries. They include trading, manufacturing, extractive industries, construction genetic industries, and all firms other than the financial ones, just like household and financial institutions.
Non-Financial Institution
means the national, provincial, municipal or city governments, and barangays or towns comprising the Philippines as a whole.
Government
is responsible for the entire country
President
is responsible for his own province.
Governor
is responsible for his own city.
Mayor
is responsible for his own barangay.
Barangay Captain
is part of the government that is a participant in the financial system. They act as borrowers/deficit units, and when the ___ or any other dubdivisions of government buy sevurities, they act as investors or savers/surplus units.
Bureau of the Treasury (BTR)
The Bangko Sentral ng Pilipinas and all other central banks of the different countries are mandated to ensure that their respective countries have a stable and healthy financial system.
Central Bank
refers to the participants from the rest of the world-households, governments, financial and non-financial firms, and central banks
Goods and Services and Financial instruments/securities are exchanged across national boundaries as well as within these boundaries.
Foreign Participants
is the central bank of the republic of the Philippines
Bangko Sentral ng Pilipinas
BSP established as the country's central monetary authority.
January 3, 1949
BSP established pursuant to the provisions of the 1987 Philippine Constitution and Republic Acy No. 7653
July 3, 1993
BSP is now called _______, to replace the Central Bank of the Philippines
The New Central Bank Act of 1993
blue signifies
Stability
The stars rendered in gold symbolize
Wisdom, Wealth, Idealism, and High Quality
White color of the eagle signifies
Purity, Neutrality, and Mental Clarity
Eagle is the worlds largest eagle and a symbol of
Strength, Clear Vision, and Freedom
3 Stars represents the 3 Pillars of Central Banking
Price Stability, Stable Banking System, Safe and reliable Payment System
Font or typeface, Non serif signifies
Solidity, Strength, and Stability
It also characterizedby clean line portrays the no-nonsense professional manner of doing business at BSP
Font or Typeface
symbolize the continuing and unending quest.
Round Shape
BSP has the monopoly of printing money bills and mintinh money coins.
Bank of Issue
BSP handles the banking accounts of government agencies and instrumentalities. All government agencies deposit their funds with BSP.
Government'S Banker, agent, and adviser
All banks are regulated to have adequate reserves in proportion to their deposit liabilities with BSP to ensure availability of cash to depositor who wish to withdraw deposits.
Custodian of the cash reserves of Banks
This is designed to meet problems relevant to balance of payments and maintaning the external value of the local currency, as a guarantee for uts issuance or currently bills or notes and deposit liabilities (Cash reserves of commercial banks.)
Custodian of the nation's reserves of international currency
means the central bank lends money to banks in distress on the vasis of their promissory notes or the promissory notes of the bank borrowers.
Bank of Rediscount and lender of Last resort.
The central bank acts as a sort of clearing house. This means that banks send representatives to the clearing house at the central bank where calims are demanded by one bank against another banks have their own boxes at the clearing house.
Bank of Central Clearance and Settlement
Controlling money supply requires controlling credit. The higher the money supply in circulation, the higher the prices of goods and services.
Controller of Credit
it refers to the manipulation of money supply to affect the economy of a country as a whole. It largely impacts interest rates.
Monetary Policy