Table of contents

Question 1: Comparison of demand deposits and demand deposits......................................................1

Question 2: Comparison of demand deposits with term deposits..........................................................3
Question 3: Comparison term deposits vs. term savings deposits..........................................................4
Question 4: Comparison of term fixed value tax with the issuance of valuable papers.......................5
Question 5: Solutions to increase capital mobilization of commercial banks.......................................6
Question 6: Why does capital mobilization contribute to controlling inflation?..................................7
Question 7: Comparison between property mortgage and asset pledge................................................7
Question 8: Comparison between property mortgage and property guarantee...................................8
Question 9: CAN A LOAN BE SECURED BY MULTIPLE ASSETS? FOR EXAMPLE..................9
Question 10: ONE ASSET CAN GUARANTEE MANY LOANS AT THE BANK...........................10
GOOD GOODS IN MANY BANKS – FOR EXAMPLE.....................................................................10
Question 11: WHAT IS A GROUP OF RELATED CUSTOMERS AND RELATED PEOPLE?....10
Question 12: Comparison of one-time loans and credit limit loans.....................................................11
Question 13: Compare property leasing with financial leasing............................................................12
Question 14: Compare project lending with financial leasing..............................................................13
Question 15: Compare lending with discount........................................................................................14
Question 16: Comparison of discount with factoring...........................................................................14
Question 17: Comparison of loans with factoring.................................................................................15
Question 18: Comparison of collection authorization with expenditure authorization.....................16
Question 19: Comparison of payment authorization with check.........................................................16
Question 20: Which is more common between the collection authorization and the expenditure
authorization today?...............................................................................................................................17
Question 21: Comparison of central banks and commercial banks....................................................17
22/ Differentiating between medium- and long-term loans for investment in fixed assets and
financial leasing.......................................................................................................................................18
23/ Differentiate between a debit card and a credit card......................................................................19
24. Comparison between paper money and valuable papers...............................................................20

Question 1: Comparison of demand deposits and demand deposits

*Same:

- Savings products with interest rates provided by the bank to customers.

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- Both are the basis for proving financial capacity.

- Deposits are guaranteed by banks, giving depositors peace of mind about the preservation of
principal.

- Customers (individuals, businesses...)

- Both deposits are deposited at commercial banks and are protected in accordance with the law.

* Various:

Criteria Term deposits Demand deposits

Notion It is a form of deposit at a bank or It is a form of deposit at a bank or

financial institution for a certain financial institution where depositors
period of time (term), with a fixed can withdraw money at any time
interest rate. without waiting for a fixed term.

Submission There is a fixed term (1 month, 3 There is no fixed term, which can be
deadline months, 6 months...) withdrawn at any time.

Interest Higher interest rates Lower interest rates

Ability to More difficult, it can only be Easy withdrawal at any time.

withdraw withdrawn when the term is due, if
funds you withdraw before the deadline,
you will lose interest.

Liquidity Lower liquidity due to early High liquidity, easy to convert into
withdrawal restrictions. cash.

Purpose Profitable Payment, Transaction

Administer Open a term deposit account, Sign Open a demand deposit account, the
1 deposit contract, stable balance balance is unstable.
for 1 period of time

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 Interest There are 3 calculation methods (at Pay monthly
calculation the beginning of the period, at the
end of the period, periodically)

Common Less common More popular

Question 2: Comparison of demand deposits with term deposits

*Same:

- Mainly for individual customers who have idle money and do not like risks, have a savings
book.- Used to prove financial capacity, as a basis for guaranteeing loans.- Purpose of profit,
asset safety- Interest rates comply with the regulations of the SBV- No transactions, abate

*Different:

Criteria Term Fixed Income Tax Demand Transaction

Notion It is a form of VAT that the sender can It is a form of VAT that the
only withdraw after a certain term. sender can pay and withdraw
money at any time.

Tenure 1 week, 2 weeks, 3 weeks, 1 month, 2 No regulation.

months, 3 months, 6 months, 9 months,
12 months, over 12 months.

Interest Higher than non-demand, the longer the The interest rate on demand
deposit period, the higher the interest deposits is usually lower, due to
rate. its high flexibility, allowing
withdrawals at any time. Subject
Kept fixed throughout the deposit term. to change from time to time.

Interest End of period (interest paid later); at the Periodic interest payment; pay
payment beginning of the period (prepaid interest); interest at the time of settlement.
method periodically (interest paid on a monthly
basis).

Ability to Partial or full withdrawals can be made You can settle at any time and
settle ahead of early by cash or bank transfer. When still enjoy the same demand
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 time withdrawing early, the bank calculates interest rate as the original.
the interest that customers are entitled to
according to the demand deposit interest
rate.

Purpose Profitable Asset safety

Number of As many times as you send, there are so No matter how many times you
submissions many passbooks send, there is only 1 passbook

Common More popular Less common (almost non-

existent in Vietnam)

Question 3: Comparison of term deposits with term savings deposits

*Same:

- All are forms of depositing money into the banking system with interest rates on a
monthly/quarterly/yearly basis,... along with high safety

- Both require customers to deposit savings for a specific term

- There is a high interest rate and it is profitable, if you withdraw in advance, you will be subject
to the demand interest rate.

- Proof of financial capacity, having a loan guarantee

- Interest payment method (at the beginning of the period, at the end of the period, periodically)

- To comply with the provisions of the law

*Various:

Criteria Term deposits Term savings deposits

Notion It is a form of deposit at a bank or financial It is a form of VAT that the

institution for a certain period of time (term), sender can only withdraw

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 with a fixed interest rate. after a certain term.

Who should Usually organizations, businesses, or Mostly personal.

use it individuals.

Administer Term Deposit Accounts, Deposit Contracts Term savings account,

passbook

Common Less common More popular

Flexible Less flexibility More Flexibility

Question 4: Comparison of term fixed value tax with the issuance of valuable papers

*Same:

- Both are safe investment channels with the purpose of profit - The same interest payment
method (end-of-term, early-term, periodic). - Both are forms of capital mobilization of
commercial banks, ensuring capital safety + interest (including life insurance) - Interest rates are
higher than demand deposits. - Proof of financial capacity as the basis for securing the loan - All
have a specific term

*Different:

Criteria Term GTK Valuable documents of the bank

Notion It is a form of VAT It is a certificate issued by a commercial bank to raise

that the sender can capital, confirming the obligation to pay a certain amount
only withdraw after a of money within a certain period of time with the condition
certain term. of paying interest and other terms of commitment between
the commercial bank and the buyer of valuable documents.

Property Regular Infrequent

Interest The interest received The interest is higher than the fixed value of the term.
is lower than that of

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 valuable papers.

Object Individual Individuals and businesses

Withdraw In Vietnam, it is In Vietnam, it is not allowed to withdraw ahead of time

withdrawn ahead of (due to higher interest rates)
time

Purpose Not necessarily Have a specific purpose

Form Savings Deposits <1-year short-term bond >1-year bond

Common More popular When the bank issues it, it can buy the price of the

Question 5: Solutions to increase capital mobilization of commercial banks

*Increase in deposit interest rates

 Interest rate competition: Banks can adjust interest rates higher than their competitors to
attract customers to deposit money.
 Preferential Interest Rates: Offer preferential interest rates on large deposits or long terms
to encourage customers to keep their money in the bank for longer.

*Improve customer service

 Personal Financial Advisory: Provides professional financial advisory services to help

clients choose the right product packages for their financial needs.
 Customer Care: Enhance customer service, especially with VIP customers or potential
customers.

*Promote communication and advertising

 Omnichannel advertising: Use advertising on media channels such as TV, social media,
and the internet to increase brand awareness and announce new products and services.

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  Propagation of savings benefits: Strengthen communication to raise customer awareness
of the benefits of depositing savings at the bank.

Question 6: Why does capital mobilization contribute to controlling inflation?

- Reducing the amount of money in circulation in the economy: when banks raise capital through
forms such as savings deposits, issuance of valuable papers, etc. then money from the hands of
people or businesses will be transferred to banks, leading to a decrease in the amount of money
in the economy. According to the tightening of monetary policy, when reducing the money
supply in the economy, it will cause interest rates in the market to increase, narrow aggregate
demand, and reduce the general price.

- Raising interest rates and limiting consumption: When banks raise more capital (by raising
deposit rates), they can increase lending rates. Higher interest rates reduce the demand for
consumer loans and investment, which in turn reduces spending in the economy. The reduction
in spending helps curb inflationary pressures, as reduced demand leads to prices not being
pushed up.

Question 7: Comparison between property mortgage and asset pledge

Same:

- Form: An agreement on pledge or mortgage of assets between the parties shall be made into a
contract in the form of a document

- Validity: Effective from the time of signing unless otherwise agreed or otherwise provided for
by law.

- Regarding the time of termination of the agreement

Different:

Character Property Mortgage Pledge of assets

Notion Mortgage of assets is the use of Pledge of assets is the delivery of

assets owned by customers assets under the ownership of the
(mortgagors) to ensure the customer (the pledgee) to the
fulfillment of debt repayment credit granting bank to ensure the
obligations to the credit-granting fulfillment of debt repayment
bank and not transfer such assets to obligations
the credit-granting bank.

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 Assignment of Non-delivery Assignment of assets
assets

Ownership The mortgagor retains ownership The pledgee of the year of

holding the property

Legal effect From the time of registration From the time the pledgee holds
the property

Object Movable property, real estate, Movable property, valuable

valuable papers papers (bonds, stocks), gold and
silver, jewelry....

Property Difficult to buy and sell and Easy to buy and sell and
exchange exchange

Cost of Holding Tall Short

Question 8: Comparison between property mortgage and property guarantee

Same: Both forms ensure that the party receiving the property can exercise its rights in the event
that the obligor (mortgagor or guarantor) fails to perform its obligations on time.

Different:

Character Property Mortgage Guarantee with assets

Notion Mortgage of assets is the use of Property guarantee is a third party

assets owned by customers (guarantor) that commits to the lender to
(mortgagors) to ensure the use the assets it owns to perform the debt
fulfillment of debt obligations to repayment obligation on behalf of the
the credit-granting bank and not borrower, if the debt repayment is due but
transfer such assets to the credit- the borrower fails to perform or cannot
granting bank properly perform the debt repayment
obligation.

Number of Usually 2 sides Usually 3 parties (guarantor, guaranteed

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 Participants party, guarantor party)

Object Only guarantee the obligations of Ensuring the obligations of the obligor
the mortgagor

Assignment Non-delivery Deliverable or not

of assets

Effect From the time of registration According to the regulations on guarantee

contracts

Rights of the Collateral Auction Request the guarantor to perform

recipient obligations or dispose of collateral

Question 9: CAN A LOAN BE SECURED BY MULTIPLE ASSETS? FOR EXAMPLE.

- Maybe: Because when borrowing money, borrowers can use various assets such as houses,
cars, machinery, equipment, or other assets as collateral. The use of multiple assets to secure a
loan increases the safety of the lender, because if an asset is not valuable enough to cover the
loan when the borrower is unable to repay, other assets will be used to replace it.

- This process is called "multi-collateral". The specific terms of the loan will depend on the
agreement between the borrower and the lender, as well as on the legal regulations of each
country.

Example: Mr. A wants to borrow 2 billion VND from the bank to expand his business. The bank
asked Mr. A to provide collateral to protect the loan in case he could not repay the debt.

The collateral includes: + Mr. A's house is valued at 1.5 billion VND.

+ Mr. A's car is valued at 500 million VND.

→ Because the total value of the house and car is 2 billion VND, Mr. A can use both of these assets
to mortgage the loan of 2 billion. If Mr. A is unable to repay the loan on time, the bank has the
right to recover these assets and sell them to recover the loan amount.

→ The use of multiple collateral helps Mr. A meet the bank's requirements, and at the same time
increases the possibility of borrowing a larger amount of money than using only a single asset.

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 Question 10: ONE ASSET CAN GUARANTEE MANY LOANS AT THE BANK

GOOD GOODS IN MANY BANKS – FOR EXAMPLE.

- One asset can be used to secure multiple loans, but this depends on the bank's regulations and
the laws of each country. Normally, if an asset has been used as collateral for a loan, its use as
collateral for other loans will be limited, unless the collateral must be greater than the total value
of the secured loans. unless otherwise agreed.

- In order to use an asset for multiple loans, banks need to agree and may require a debt
collection order if the borrower is unable to repay the debt. Assets can share the mortgage when
the value of the asset is greater than the total amount of the loans, or the parties involved agree to
divide the mortgage.

- However, banks often require assets that are not in dispute or have been previously
mortgaged to ensure credit safety. Therefore, it is not common to use one collateral for multiple
loans unless there is a specific agreement or safety measures for the bank.

For example: Mr. B has a house worth 5 billion VND. Mr. B uses this house as collateral for:

+ The first loan: Mr. B borrowed VND 2 billion from bank A and mortgaged the house. Bank A
has the right to prioritize debt recovery from this house if Mr. B fails to repay the loan.

+ Second loan: After that, Mr. B wants to borrow another 1 billion VND from bank B. Bank B
agrees, but the mortgage request is only the second right, that is, the debt can only be recovered
from the house after bank A has fully recovered the amount from the previous loan if Mr. B does
not repay the debt.

→ In this example, Mr. B's house is used to secure two loans at two banks, provided that the value of
the property (the house) is sufficient to meet both loans and the banks agree on the priority of
debt recovery.

Question 11: WHAT IS A GROUP OF RELATED CUSTOMERS AND RELATED

PEOPLE?

Related customer groups

Definition: A group of related customers is an individual or organization that has a direct or

indirect relationship with the bank, participates in transaction activities, uses the bank's services,
and is affected by the bank's activities.

Main customer groups:

- Individual customers: depositors, borrowers, card users, insurance buyers

- Corporate customers: small and medium-sized enterprises, large enterprises, NGOs

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 - Institutional customers: State administrative agencies, financial companies, insurance
companies, investment funds.

Relevant persons of the bank

Definition: A bank's related persons are individuals or entities that have a special relationship
with the bank, which may include major shareholders, board members, executive boards, or
relatives of these individuals.

- Cases of related persons of the bank:

 Major shareholder: A person who owns more than 5% of the bank's shares.
 Board members or executive board members: Individuals who hold senior
management positions in the bank.
 Relatives of the above individuals: Including parents, spouses, children of major
shareholders or members of the board of directors and executive board.
 Related Person Controlled Enterprises: Companies that are owned or controlled by
related persons.

Question 12: Comparison of one-time loans and credit limit loans

Same:

- Short-term loans, not exceeding 12 months.

- Both are 1 of the Bank's forms of credit extension.

- Conditions for loan consideration

- All comply with the regulations on the credit approval process

Different:

Criteria One-time lending Line of credit loans

Notion One-time lending is a Lending by credit line is a lending method in

lending method that is which the bank and the customer agree on a
carried out according to maximum loan balance for a certain period of
each customer's borrowing time (usually 1 year)
needs.

How to make The borrower must apply Financial institutions and banks will grant
a profile for a loan each time and borrowers a limit, not limit sales, only limit the
clearly state the loan amount of outstanding debt. Borrowers only
amount, interest rate and need to apply once for multiple loans.
repayment term

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 Scope of Suitable for customers who Suitable for people with normal, reputable loan
application need seasonal or irregular needs and clear borrowing purposes
loans

Disbursemen Longer Faster

t time

Interest Depending on each loan There are usually interest rates that fluctuate
according to the market

Risk Lower Higher

Calculation Loan demand = Working Loan limit (plan) = Demand for loans (plan) –
formula loan demand – Own capital Customer's own capital
of participating customers

Question 13: Compare property leasing with financial leasing

Same:

 Both forms aim to provide the property for the lessee to use for a certain period of time,
in return for a monthly rental fee.
 Both are based on a legal contract between the lessor and the lessee, clearly stipulating
the terms of the lease term, rental fees, maintenance, maintenance, etc.

Different:
Character Property Lease Financial Leasing
Essence It is an ordinary property It is an acute form of use.
lease contract.
Ownership It still belongs to the lessor. Nominally, the lessor retains ownership, but in
reality most of the risks and economic benefits
associated with the ownership transferred to the
lessee.
Target Individuals and businesses. Business.
customers
Participants Usually there are 2 parties Usually there are 3 or more parties involved.
involved.
Contract Possible cancellation of the The contract cannot be canceled.
contract
Lease Term Usually short-term, Usually long-term, equivalent to the economic life
extendable. of the asset.
Asset It can be any type of Usually large assets with high value and long
property: factories, service life: Machinery, equipment, means of
machinery, vehicles... transportation.

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Risk Mainly the risk of In addition to property risks, there is also a risk
preservation and damage to when the lessee does not pay the fee in full.
property.
Economic The lessor earns profit The lessor earns profits from rental fees and other
Benefits from the rental fee. service charges.
Accounting Rental expenses are Considered as a form of borrowing, assets and
accounted for in operating liabilities must be recorded.
expenses.
Redemption There are no specific There is usually a provision that allows the lessee
rights regulations. to buy back the property at the agreed value.
Purpose Meeting the needs of the Supporting businesses to access capital and
tenant to use temporary purchase assets without spending a large amount
assets of capital from the beginning.

Question 14: Compare project lending with financial leasing

Same:
- Both are acute forms of medium and long-term use.
- Both are based on a legal contract between the lender/lessor and the borrower/lessee, clearly
stipulating terms on interest rates, terms, guarantees, etc.
- Both forms aim to provide capital for businesses to implement projects and invest in fixed
assets.
Different:
Different:
Character Project Loans Financial Leasing
Essence It is a traditional form of borrowing. It is a special form of leasing assets,
combining borrowing and leasing.
Form The lender shall provide capital to The lessor transfers the right to use
the borrower to implement the the property to the lessee.
investment project.
Parties Usually there are 2 parties involved. Usually there are 3 parties involved.
involved
Property After paying off the debt, the During the lease period, the property
Ownership business will own the assets. remains owned by the lessor.
Economic Enterprises are entitled to own assets Enterprises are allowed to use assets
Benefits and enjoy economic benefits from without making a large initial capital
such assets. investment.
Accounting Recorded as liabilities and fixed Recorded more complex, including
assets. leased assets and liabilities.
Ensure Often requires collateral or Often the leased property itself is
collateral. used as collateral.

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Question 15: Compare lending with discount
Same:

 Both loans and discounts are intended to provide financing to borrowers or sellers to meet
short- or medium-term financial needs.
 Both forms involve calculating interest on the loan amount or the discount amount.
 Both lenders and discount institutions face credit risk, i.e., the risk that the borrower or
seller defaults on the debt.

Different:
Character Loan market Discount
Definition The provision of money to the borrower, The acquisition of an unpaid
the borrower commits to return the debt from the holder of that debt.
principal and interest amount within a
certain time.
Parties It usually involves only 2 parties: the lender Usually involves 3 parties:
involved and the borrower. issuer, beneficiary, commercial
bank.
Object Usually individuals and businesses need Usually financial instruments
capital for investment, production and such as bills of exchange,
business. certificates of deposit, etc.
Collateral There may or may not be collateral. Often there is collateral that is
the debt itself that is acquired.
Ownership The borrower remains the owner of the The discount organization
property. becomes the owner of the debt.
Purpose Meet the capital needs of borrowers. Increase liquidity for financial
instruments, earn profits from
interest rate differentials.

Question 16: Comparison of discount with factoring

Similarities:

 Both discounts and factoring aim to help businesses improve cash flow, increase liquidity by
converting receivables into cash earlier.
 Both forms involve a party (usually a bank or financial institution) acquiring the business's
receivables at a price lower than the original value, i.e., at a discount.
 Both forms help businesses minimize the risk of customers not paying, thereby reducing pressure
on debt management.

Differences:

Character Discount Guest Payment Guarantee

Essence It is the sale of part or all of the receivables to It is the transfer of all ownership and
a third party at a price lower than the original debt recovery responsibility of a
value. receivable to a third party.

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 Ownershi After discounting, the enterprise still retains After factoring, the enterprise
p part of the ownership of the receivables (if completely loses ownership of the
only partially discounted). receivable.
Risk Enterprises still bear part of the risk if they The enterprise transfers all risks to the
only discount part of the receivables. factoring party.
Flexible Businesses can choose to discount part or all Enterprises must transfer all receivables.
of their receivables, depending on their
needs.
Procedure It is usually simpler, only documents proving Often more complicated, requiring more
the receivables are required. legal paperwork.

Question 17: Comparison of loans with factoring

Similarities:

 Provision of capital: Both loans and factoring are intended to provide capital to the
business to maintain business operations.
 There is a risk factor: Both lenders and factoring units face credit risk, that is, the risk
that customers will not be able to pay their debts.

Differences:
Character Loan market Payment guarantee
Essence As the provision of a sum of money to the It is the acquisition of a
borrower, the borrower commits to return receivable of an enterprise at a
the principal and interest amount within a price lower than the original
certain time. value.
Parties It usually involves only 2 parties: the lender Usually involves 3 parties: the
involved and the borrower. seller, the buyer, and the
factoring unit.
Object Usually individuals and businesses need Receivables arising from
capital for investment, production and business activities of
business. enterprises.
Ownership The borrower remains the owner of the The factoring unit becomes the
property. owner of the receivable.
Purpose Meet the capital needs of borrowers. Helping businesses recover
capital quickly and improve
cash flow.
Risk Lenders bear credit risk. Factoring units bear credit risk
but can control this risk through
customer assessment.
Procedure It is usually simpler, only documents Often more complicated,
proving the borrower's financial capacity requiring multiple documents to
are required. prove the receivable.

15
Question 18: Comparison of collection authorization with expenditure authorization
Same:

 Both are tools to make payments and transfer money between parties.
 Banks play an intermediary role, carrying out transactions at the request of customers.
 Both are based on legal grounds, which are regulated by relevant legal documents.

Different:
Feature Expenditure Authorization Collection Authorization
Founder Payer (account holder) Beneficiary (beneficiary)
Purpose Ask the bank to deduct money Ask your bank to collect money from
from the account to pay the the payer to transfer it to your account
beneficiary
Initialization The payer actively initiates the The beneficiary actively initiates the
transaction transaction
Process The payer shall make a The beneficiary shall make a collection
payment authorization order, authorization order, and the bank shall
and the bank shall deduct notify the payer to make the payment
money
Implementation Usually done immediately or by The implementation time depends on
time appointment whether the payer agrees to pay or not

Question 19: Comparison of payment authorization with check

Similarities:

 Both payment and check authorizations are used to make payment transactions, transfer
money from one bank account to another, or to withdraw cash.
 The bank acts as an intermediary in both of these forms of payment, carrying out
transactions at the request of the customer.
 Both payment authorizations and checks have a legal basis and are regulated by relevant
legal documents.

Differences:
Feature Expenditure Authorization Cheque
Form It is a written order, usually made It is a valuable document, issued by
through the electronic banking a bank
system or paper
How to do it The customer asks the bank to The cheque holder presents the
withdraw money from the account cheque at the bank for withdrawal
to transfer to the beneficiary or deposit into another account
Implementation Usually done immediately or by Can be done immediately or with a
time appointment payment deadline
Safety Safer because it minimizes the risk Less secure as checks can be lost,

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 of loss and counterfeiting forged, or counterfeited
Scope of use Widely used in internal Often used to withdraw cash or pay
transactions, salary payments, large sums of money
invoices, etc.

Question 20: Which is more common between the collection authorization and the
expenditure authorization today?
In banking transactions, collection authorization and expenditure authorization are both common,
but expenditure authorization is more widely used. Authorization is a form in which customers
authorize banks to transfer money from their account to the recipient's account, which is often
used in payment transactions.
Cause:
 Changing payment habits: More and more people are turning to cashless payments.
Spending mandates meet this need effectively, helping to minimize the risk of losing cash and
making it more convenient to manage personal finances.
 High security: Spending authorization transactions are carried out through the banking
system, ensuring high security, helping customers feel more secure when making high-value
transactions.
 Wide range of applications: Spending authorizations are used in various fields such as
payroll payments, invoices, online shopping, etc.

Question 21: Comparison of central banks and commercial banks

Similarities:

 All are credit institutions: Both central banks and commercial banks are licensed to
operate in the financial sector, have the right to carry out activities related to currency and
credit.
 Participation in the payment system: Both participate in the national payment system,
which provides payment services to customers.

Differences:

Character State Bank of Vietnam (SBV) Commercial Banks

Property State management agencies Business

Goal Maintain macroeconomic stability, Generate profits for shareholders,

ensure the safety of the banking system, provide financial services to
and serve the State's financial policies. customers.

Function

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 Monetary Administering monetary policy, Follow the monetary policy of
policy adjusting the amount of money supply, the Central Bank.
decisions exchange rate.

Supervision Supervise and inspect the operation of Supervised and inspected by the
and inspection credit institutions, including commercial Central Bank.
banks.

Release of Issuance of banknotes and metal coins. There is no right to issue money.
money

Loan market Mainly on-lending to commercial banks. Lending to organizations and

individuals.

Raising capital Raising capital from commercial banks Raising capital from
and issuing government bonds. organizations and individuals.

22/ Differentiating between medium- and long-term loans for investment in fixed assets and
financial leasing
*Same:
-Medium and long-term credit
-Business credit
*Different:
Criteria Medium- to long-term loans to Financial Leasing
invest in fixed assets
Form Cash Sponsorship Financing with assets
Purpose Partial financing of capital needs Financing the entire capital need
Collateral Must have collateral No collateral required
Property Medium- and long-term lending A financial lease contract is an
contracts are cancelled credit irrevocable credit contract.
contracts.
Parties involved There is the participation of 2 There is the participation of 3
subjects: banks, customers subjects: leasing company,
customer, supplier.
Principal Directly supplied by commercial Operated by a financial leasing
Implementing banks to customers company (a subsidiary of a
Parties commercial bank)

23/ Differentiate between a debit card and a credit card

*Same:
-Cash alternative payment methods are being used more and more popularly
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-Scope of use: domestic and abroad
Criteria Debit Cards Credit Cards
Notion - A debit card is a payment card that - Credit card is a payment
replaces cash. card, consume first, pay later.
- All spending will be deducted directly - After a maximum of 45 days
from the amount in the account if the bank has not fully
refunded the money, the
cardholder will be charged
additional interest.
Card Structure Front: Front:
- Symbol (usually VISA or Mastercard) - Symbol: the word
- The words "DEBIT" above or below the "CREDIT"
payment unit icon on the card
- Name and logo of the issuing bank - Bank name and logo
- Card number, cardholder's name Card issuance
- Card validity period - Card number, cardholder's
Back: name
- Magnetic strips containing encrypted - Card validity period
information and safety check elements - Electronic chips
Back:
- Magnetic tapes containing
CVC/CVI numbers
- Signature box for
cardholders
Function Withdraw money, transfer money, save - Payment for goods and
money, recharge your phone... services... Cash replacement,
withdrawal
Conditions for Just have an ID card/ID card The card holder must have:
making cards stable job, proof of income,
average monthly income
statement, labor contract,
ownership documents, etc.
Fees and interest - Withdrawal fees: low - Withdrawal fee: 0-4% / total
rates - Transfer fees: low withdrawal amount
- Annual fee: low However, international - Annual fee: high
debit cards have higher fees than - Banking service fee,
domestic fees. Internet banking: free of
- Banking and Internet banking service charge
fees may be free or free depending on the - High interest rates if the
bank. outstanding payment is slow.
Card limitations Based on the amount of money deposited Based on the limit that the
by the customer bank grants to cardholders.
tag.

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24. Comparison between paper money and valuable papers

Similarities:

 Both forms of payment: Both paper money and valuable papers are used as a means of
payment in economic transactions.
 Both have a conversion value: Both have a certain value that is stipulated and accepted
in general.
 Both are assets: Both banknotes and valuable papers are considered the property of their
owners.
 All are issued by reputable institutions: Banknotes are issued by the Central Bank,
while bonds and promissory notes are usually issued by governments, companies, or
financial institutions.

Differences:

Character Paper money Valuable papers (bonds,

promissory notes)
Liquidity Very high, can be used to pay Lower than paper money,
at any time. usually has a maturity date
and needs to go through the
transfer process.
Stability of value The value is relatively stable The value can fluctuate
in the short term, but can be depending on many factors
affected by inflation. such as the economic
situation, interest rates, and
the reputation of the issuer.
Purpose of issuance Used to circulate goods and Used to mobilize capital for
services in the economy. investment and business
activities.
Owner's rights Mainly the right to use for In addition to property
payment. ownership, the owner also has
the right to receive periodic
interest and the right to
receive back the principal
when due.
Risk Risk of depreciation due to Risk of capital loss if the
inflation. issuer goes bankrupt or
defaults on debts.

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