Directions: Read and analyze each item. Encircle the letter of the correct answer.

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1. The following are the reason why the government regulates financial markets and financial institution,
except

A. To ensure the soundness of the financial system

B. To increase the information available to investors

C. To ensure that borrowers and lender are brought in the financial market

D. To improve control of the financial system

2 The following are the principal regulatory agencies of the Philippines Financial System, except

A Bangko Sentral ng Pilipinas

B. Securities and Exchange Commission

C. Insurance Commission

D. Government Service Insurance System.

3. They are the one who exercise the power and functions of the BSP such as the conduct of monetary
policy and supervision of the financial system

A. Governor B. President C. Monetary Board D. Sector Heads

4. It refers to the portion of the bank's deposit iability that are not available for lending

A. Excess reserves C. Deficit reserves

B. Legal bank reserves D. Bank control deposit

5. To protect the public and the economy from financial panic, the government has implemented the
following types of regulation, except
A Impose restriction on interest rates

B. Impose restriction on entry

C. Follow strict principles in reporting requirement

D. Financial institution or intermedianes are allowed to engage in certain risky activities or to hold risky
assets

6. As a fiscal agent of the government, the Bangko Sentral has the following functions, except

A. To manage public debt

B. To manage the public asset of the govemment

C. To be the financial adviser of the government

D. To be the depository banker of the government.

7. Asymmetric information can lead to widespread collapse of financial intermediaries. referred to as a

A. Bank holiday B. Financial panic

C. Financial disintermediation D. Financial collapse

8. The government regulates financial markets for three main reasons:

A. To ensure soundness of the financial system, to improve control of monetary policy, and to increase
the information available to investors

B. To improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of
return, and to increase the information available to investors.

C. To ensure that financial intermediaries do not earn more than the normal rate of return, to ensure
soundness of the financial system, and to improve control of monetary policy.

D. To ensure soundness of financial intermediaries to increase the information available to investors,

9. Which of the following regulations does not ensure soundness of the financial system?
A. Restriction of new entrants in the financial industry

B. Restriction on assets activities

C. Provide deposit insurance

D. Freedom to increase or decrease interest rate

10. The government regulates financial markets and financial institutions for, except

A. To improve control of the financial system

B. Ensure the soundness of the financial systems

C. To manage public debt

D. To increase the information available to investors

11. Who are required to file a claim against the assets of a closed bank?

A. Debtor B. Creditor C. Both debtor and creditor D. Manager

12. The following are covered by PDIC Deposit Insurance?

A. Deposit accounts that are not funded

B. Deposit accounts constituting or emanating from unsafe or unsound business practices

C. Deposit accounts that are not fictitious or fraudulent

D. Deposit accounts that are determined to be proceeds from unlawful activity as defined in AMLA

13. The following statement are correct, except.

A. Creditors whose credit are secured by duly registered real estate mortgage are no longer required to
file their claims against the assets of the bank

B. Creditors must file their claims within 60 days from the date of publication of the notice of closure of
a bank in a newspaper of general circulation

C: The absence or insufficiency of documents to support the claim shall result in the disallowance of the
claim
D. Deposit accounts that are funded is not covered by PDIC

14 Which of the following is not a function of PDIC?

A. Deposit insurer

B. Co-regulators of the bank

C Receiver and liquidator of closed bank

D. Engage in lending of funds obtain from the public

15. Which of the following is considered as safe and sound banking practices?

A. Solicitation and acceptance of deposits outside bank premises

B. Non-compliance with minimum identification and documentation requirements from depositors

C.Granting high interest rates when the bank has negative unimpaired capital

D. Allowing depositors to deposit withdraw or transfer funds with proper Documentation

16. The following are covered by PDIC Deposit insurance, except

A Demand deposit

B. Saving deposit

C Deposit account that determined to be proceed of lawful activity

D. Deposit that are unfunded

17. Which of the following is incorrect?

A. if the claim is disallowed, the debtor shall be notified in writing of the reason for the disallowance of
his/her claim.

B. The absence or insufficiency of documents to support the claim shall result in the disallowance of the
claim

C. Claim shall be filed in writing preferably using the prescribed Claim form
D. In case PDIC finds the supporting documents to be incomplete or insufficient to establish the liability
of the bank, it shall issue a notice of documentary deficiencies

18. The following statement are correct about PDIC except

A. Exist to protect depositors by providing deposit insurance coverage for the depositing public B. Help
promote financial stability

C. Tasked to strengthen the mandatory deposit Insurance coverage system to generate, preserve,
maintain faith and confidence in the country's banking system

D. To maintain price stability conducive to a balanced and sustainable economic growth.

19. How many days does the claimant may request for extension for disallowance?

A. 60 days before the receipt of the notice of denial of claim

B. 15 days upon written of request

C. 60 days after the receipt of the notice of denial of claim

D. 60 days from the date of publication of the notice of closure

20. The following are the three main functions of PDIC, except

A. Deposit insurer

B. Receiver liquidator of distressed banks

C. Loan functions

D. Co-regulator of the BSP over banking institutions.

21. The regulatory agency responsible for the supervision over all corporations. partnership, or
associations who were granted primary franchises and/or license to operate is the

A. Bangko Sentral ng Pilipinas

B. Insurance Commission/

C. Local Government Unit

22 The regulatory agency responsible for the formulation of policies and recommendations concerning
the securities market is

A. BSP B. SEC C. PDIC D. IC

23. The regulatory agency responsible for the promotion of growth and financial stability among
insurance. pre-need and HMO companies is the

A. IC B. SEC C. BSP D. PDIC

24 The SEC's mission includes the following except

A. Regulation of capital market

B. Promotion of good corporate governance

C. Facilitation of access to financial product and resources

D. Professionalization of the insurance, pre-need and HMO services

25. The following are the securities that should be registered with the SEC before they are sold or
distributed except

A. Shares of stocks, bonds, debentures

B. Derivatives like options and warrants

C. Proprietary membership certificates in corporation

D. Certificate issued by a receiver or by a trustee in bankruptcy

26. Within how many days should the required annual financial reports for submission to the SEC be
made by the issuer of the secunties?

A. 180 days after the end of the issuer's fiscal year.

B. 135 days after the end of the issuer's fiscal year.

D. 120 days after the end of the issuer's fiscal year.

27. The objectives of the Insurance Commission include the following except

A. To establish a sound national insurance market.

B. To safeguard the rights and interest of the insuring public, pre-need and HMO customers

C. To promote growth and financial stability of insurance, pre-need and HMO companies

D. To act as overseer of the capital market in the ASEAN and Asia-Pacific Region.

28. Among the regulated entities under the insurance Commission are the following except

A. Pre-need companies

B. Accredited actuaries

C. Life and Non-life insurance companies

D. Universal banks

29. The regulatory agency that is responsible for all depository institutions is the

A. IC B. SEC C. BSP D. PDIC

30. The regulatory agency that is responsible for all organized exchanges and financial markets

A. BSP B. PDIC C. IC D. SEC

31. The regulatory agency that is responsible for giving protection on deposits made in member-
institution that falled is

A. BSP B. PDIC C. IC D. SEC

32. Which one of the following regulations does not ensure soundness of the financial system?

A. Restriction of new entrants in the financial industry

C. Tight and stringent reporting requirements

D. Freedom to purchase any type of assets and engage in any type of activity.

33. imposing reserves requirements on deposits received is the responsibility of the

A. SEC B.IC C. BSP D. PDIC

34. The function of the BSP that relates to the regulation of discounts, loans and advances to banking
institutions for liquidity purposes is

A. Liquidity management C. Lender of last resort

B. Currency issue D. Foreign currency reserve management

35. From the date of publication of the notice of bank closure, within how many days should depositor
file their claim against the assets of the bank

A. 90 days B. 120 days C. 30 days D. 60 days