NAME: Gozar, Ruthgardo L.

SECTION: PCBET-18-704E
SCHEDULE: 4:30pm-6:00pm M/H

DEFINE PROBLEM:

1. What are the three primary ways in which capital is transferred between
savers and borrowers?

2. What is a market? Differentiate between the following types of markets:

physical asset markets
versus financial asset markets, spot markets versus futures markets, money markets
versus capital
markets, primary markets versus secondary markets, and public markets versus
private markets.

3. Why are financial markets essential for a healthy economy and economic
growth?

4. What are derivatives? How can derivatives be used to reduce risk? Can
derivatives be used to increase risk? Explain.

5. Briefly describe each of the following financial institutions: investment

banks, commercial banks,financial services corporations, pension funds, mutual
funds, exchange traded funds, hedge funds, and private equity companies.

FORMULATED ALTERNATIVE COURSE OF ACTION TO SOLVE PROBLEM:

1. The tree primary concept stand to solve the problem are the Direct
transfers,indirect transfer through investment bankers, lastly the indirect transfer
through a financial intermediary

2. knowing the financial assets of the primary market are for medium- to long-
term transactions. Primary markets are where securities are created, while the
secondary market is where those securities are traded by investors. Private markets
transactions are negotiated between two parties.
 3.Will need to expand and develop, businesses, governments, and individuals all
require access to cash. Building factories, expanding businesses, and producing new
products

4. know about the meaning of derivatives When a person or a company buys

derivatives in the hopes of seeing their value rise in the future, this is known as
speculation. However, it's possible that the derivatives' value will fall instead.

5. We all know an investment bank is a financial institution that assists

businesses in obtaining the capital they want to fund new projects. This is
accomplished through the underwriting and distribution of new investment securities.

ANALYZED ALTERNATIVES IN TERMS OF STRENGTH AND WEAKNESS:

1. if you already know the 3 primary parts of the Direct Transfers, Indirect,
indirect transfer,Indirect transfer through a financial intermediary,and how you used it
and handle it , weaknesses where you didn't apply these primary parts of transfers.

2. Already knowing that A market is defined as the sum total of all the buyers
and sellers in the area or region under consideration Physical assets markets are for
products such as wheat, autos, computers and machinery and weakness for this is
when you changed your other plan without planning , and to choose all manual and
not advanced technology.

3. strength is to expand and develop, businesses, governments, and

individuals all require access to cash. Building factories, expanding businesses, and
producing new products are all examples of how capital is used to fulfill changing
consumer wants and desires. These kinds of improvements can't be achieved with
money that's already being spent on day-to-day operations, weakness can be focused
on the profits not on the customers satisfaction.
 4. When derivatives are utilized for speculative purposes, they enhance the risk.
When a person or a company buys derivatives in the hopes of seeing their value
rise in the future, this is known as speculation. However, it's possible that the
derivatives' value will fall instead. when you take a risk in terms of transfer and those
investments and those weaknesses can be you didnt take a risk to maximize and
define your problem.

5. The strength of this is The conventional department store of finance is a

commercial bank. It offers a variety of services to individuals and organizations who
are saving or borrowing money. The weakness of this is when you don't save your
money and invest it in the business.

ALTERNATIVES ACCEPTED RECOMMENDED COURSE OF ACTION:

1. know how to invest and give the best descriptions on how the investment
can be successful and make alternative planning on how you would resolve and
organize the main problem for these issues and how you give motivation to the
investors.
2. Seeking for an taking a risk is one of the most needs in handling investment
for this is you need to evaluate more regarding on how would you really promote in
helping your business in investing alternative things in you should take a risk enable
to achieve strong interpersonal skills development.

3. In financial growth it happens in yourself if you have determination where

you should have a creative mind to take a risk to build challenges , seeking a goal
oriented approach in advancement that gives you the right ideas to achieve your
common goals in life.

4. Increasing and Decreasing in the risk is part of our life i recommend this to
our business owners who have taking a risk , all of this is need to settle and give an
alternative ways on how would you handle the situation,
 5. investment banks, commercial banks, financial services corporations,
pension mutual funds, exchange traded funds, hedge funds, and private equity
companies.recommended for this for those owners of the company where in the
process for this is having strong organization and focus on common goals and to
achieve those owners their business and having a long terms goals .