Reference no: EM133253372

1. A bank under a receivership can still grant new loans and accept new deposits. a. True b. False

2. A bank can engage the services of another entity to receive deposits on its behalf; the bank has to do it by itself. a. False b. True

3. Two or more corporations owned or controlled by the same family group or same group of persons shall be considered related interests and must be fully disclosed in all transactions by such corporations or related groups of persons with the bank. a. True b. False

4. A publicly listed universal or commercial bank may own up to one hundred percent (100%) of the voting stock of only one other universal or commercial bank. a. False b. True

5. The fiduciary relationship means that the banks obligation to observe high standards of integrity and performance is deemed written into every deposit agreement between a bank and its depositor. a. True b. False

6. The legislative body of the government has the authority to issue the regulations which would prescribe the requirements for unsecured loans and credit accommodations which has not yet been delegated to the monetary board. a. True b. False

7. The Bangko Sentral shall also have supervision over the operations of and exercise regulatory powers over quasi-banks, trust entities and other financial institutions which under special laws are subject to Bangko Sentral supervision. a. False b. True

8. To help keep people in their homes, the SEC promoted loan modifications for troubled home-loan borrowers. a. False b. True

9. Loans that are secured by a real estate, chattels and intangible properties shall not exceed 75% of its appraised value. a. False b. True

10. Banks are allowed to extend peso loans to non-residents. a. True b. False

11. Rural Banks are defined at what Republic Act? (SECTION 3) a. 7335 b. 7553 c. 7535 d. 7353

12. The U.S. government took all of the following actions to address the credit crisis in 2008 except:

a. created the Keep Banks Solvent (KBS) agency.

b. temporarily increased FDIC domestic deposit coverage to $250,000.

c. passed the Troubled Asset Relief Program (TARP).

d. putting Fannie Mae into conservatorship.

e. authorized large non-financial firms to sell bonds that were FDIC-insured.

13. Which of the following does not characterize a bank or banking institution?

a. Funds are from receipt of deposits or sale of bonds

b. Authorized to engage in lending of funds

c. Funds for lending are obtained mainly from private institutions

d. It conducts banking activities on a regular basis

14. Which of the following security cannot be issued by banks?

a. No par value stock

b. Bonded instrument

c. Preferred stock

d. Common stock

15. Persons or entities found to be performing banking or quasi-banking functions without authority from the Bangko Sentral shall be subject to appropriate sanctions under the New Central Bank Act and other applicable laws. a. True b. False