Flores, Ara May T.

BSA 2B
Financial Management

COMPLETION
1.__Finance_____, study of how individuals, institutions, governments, and business aquire, spend and
manage financial resources.

2.__Financial Institutions____, intermediaries that help the financial system .operates efficientlyand transfer
funds from savers and investors to individuals, businesses, and overnments that seek to spend or invest the
funds.

3. _Financial Markets____, locations, or electronic forums that faciluates the flow of funds among
investors, businesses, and governments.

4. ____Investments_____, involves sale or marketing of securities, the analysis of securities, and the
management of management of investment risk through portfolio diversification.

5. __Financial Management_, involves financial planning, asset management, and fund raising decisions to
enhance the value of businesses.

6. _Personal Finance____, the study of how individuals prepare for financial emergencies, protect against
premature death and property losses, and accumulate wealth.

7. _Ethical Behavior__, how an individual or organization treat others legally, fairly, and honestly.

8. Financial System___, interaction of intermediaries, markets, instruments, , policy makers, and regulations
to aid the flow from savings to investments.

9. __Monetary System___, central bank and banking system able to create and transfer money.

10. __Money_, anything that is generally accepted as payment.

11. __Medium of Exchange__. the basic function of money.

12. __Barter__, exchange of goods or services without using money.

13. __Store of Value__, money held for some period of time before it is spent.

14. _Liquidity__, how easily an asset can be exchanged for money.

15. _Credit Money__, money worth more than what it is made of.

16. __Deposit Money_, money backed by the credit worthiness of the depositary institution that issued the
deposit.

16. __A1 Money Supply_, consists of currency, travellers’ checks, demand deposits, other checkable
deposits.
17. _____ A2 Money Supply ____, consists of M1 plus highly liquid financial assets including savings
accounts, small time deposits and retail money market mutual funds.
18. ___ A3 Money Supply ___, consists of M2 plus large time deposits, and institutionals money market
mutual funds.

19. __ Gross Domestic Product ___, a measure of the output of goods and services in an economy.

20. _ Inflation __, rise in prices not offset by increase in quality.

21.__ Velocity Of Money __, the rate of circulation of money supply.

22._ Currency Exchange Rate __, the value of one currency relative to another.

Key terms

Finance Barter
Financial institutions Store of value
Financial markets Liquidity
Investments Credit money
Financial management Deposit money
Personal finance A1 money supply
Ethical behavior A2 money supply
Financial system A3 money supply
Monetary system Credit cards
Money Gross domestic product
Medium of exchange Velocity of money
Inflation Currency exchange rate