Fin 5 Summer Online Quiz 4

20 Questions

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Fin 5 Summer Online Quiz 4

Questions and Answers
  • 1. 
     Joint accounts are insured separately from any individually-owned deposit account.
    • A. 

      True

    • B. 

      False

  • 2. 
    Checking accounts are insured by the PDIC.
    • A. 

      True

    • B. 

      False

  • 3. 
    Mutual funds are PDIC insured
    • A. 

      True

    • B. 

      False

  • 4. 
    Joint accounts are held under one name.
    • A. 

      True

    • B. 

      False

  • 5. 
    In a “For the Account of” (FAO) account, Clint For the Account of Gio,” Gio is considered the depositor.
    • A. 

      True

    • B. 

      False

  • 6. 
    As of 31 December 2012, some Philippine banks have elected to insure deposits in their foreign branches with PDIC.
    • A. 

      True

    • B. 

      False

  • 7. 
    The depositor is required pay insurance premium to the PDIC.
    • A. 

      True

    • B. 

      False

  • 8. 
    Let’s say that you have P1M in a savings account in Bank Tamsi, and another P1M in a checking account in Bank Sitam. If Bank Tamsi closes, you’ll only get a total of P500, 000 from PDIC.
    • A. 

      True

    • B. 

      False

  • 9. 
    The BSP primarily responsible for the governance of the PDIC.
    • A. 

      True

    • B. 

      False

  • 10. 
    Which PDIC Board member is not given compensation?
    • A. 

      Secretary of Finance

    • B. 

      BSP Governor

    • C. 

      PDIC President

    • D. 

      PDIC Vice Chairman

  • 11. 
    Which of the following is one in which interest is collected in advance?
    • A. 

      Discounts

    • B. 

      Loans

    • C. 

      Credit

    • D. 

      Debt

  • 12. 
    Agricultural, commercial, and personal are loan classification as to 
    • A. 

      Purpose

    • B. 

      Maturity

    • C. 

      Security

    • D. 

      Method of Release

  • 13. 
    A line of credit (LOC) is a preset borrowing limit that can be used at any time.
    • A. 

      True

    • B. 

      False

  • 14. 
    In the Philippines, an overdraft line is availed of by promissory notes  rather than checks
    • A. 

      True

    • B. 

      False

  • 15. 
    A _______________ is a procedure undertaken by a financial institution to vet a potential client's ability to pay back a loan. 
    • A. 

      Credit Investigation

    • B. 

      Loan Application

    • C. 

      Loan Processing

    • D. 

      Loans and Discount Function

  • 16. 
    These are loan amounts/proceeds released in small amounts
    • A. 

      Regular Line of Credit

    • B. 

      Maximum Loan Commitment

    • C. 

      Overdraft

    • D. 

      Installment

  • 17. 
    A group of loans that banks/investment firms/government agencies own/manage (answer should be in capital letters):
  • 18. 
    An individual’s integrity and reputation refers to which basis of credit?
    • A. 

      Character

    • B. 

      Capacity

    • C. 

      Condition

    • D. 

      Capital

  • 19. 
    A type of loan in which borrower takes out a loan used to finance business activities that generate revenue.
    • A. 

      Self-liquidating Loan

    • B. 

      Non-self Liquidating Loan

    • C. 

      Installment Loan

    • D. 

      Overdraft Line

  • 20. 
    Another term for loan and discount department (answer should be in capital letters)
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