BAFM 103 Quiz 5

Trust business shall refer to

• any activity resulting from a trustor-trustee relationship (trusteeship)

• involving the appointment of a trustee by a trustor

• for the administration, holding, management of funds and/or properties of the trustor by the trustee for the use, benefit or advantage of the trustor or of others called beneficiaries.

• all of these

What banks may be authorized to perform trust and other fiduciary functions?

• universal and commercial banks with minimum capitalization requirement

• branches of foreign banks

• thrift banks with P650 million capital

• all of them

This refers to any activity of a trust-licensed bank resulting from a contract or agreement whereby the bank binds itself to render services or to act in a representative capacity such as in an agency, guardianship, administratorship of wills, properties and estates, executorship, receivership, and other similar services

• Fideral business

• Fiduciary business

• Guardianship business

• Administratorship business

This activity shall refer to any activity resulting from a contract or agreement primarily for financial return whereby the bank (the investment manager) binds itself to handle or manage investible funds or any investment portfolio in a representative capacity of financial or investment management, advisory, consultancy or any similar arrangement which does not create or result in a trusteeship

• Trust business

• Fiduciary business

• Investment management

• Client management

This is an instrument in writing covering the terms and conditions of the trust.

• contract

• trust agreement

• memorandum of agreement

• financial agreement

This is any person who holds legal title to the funds and/or property of a trust.

• trustee

• trustor

• beneficiary

• fiduciary

This is any person for whose benefit a trust is created.

• trustee

• trustor

• beneficiary

• fiduciary

This is any person who creates a trust.

• trustee

• trustor

• beneficiary

• fiduciary

This shall refer to the person who grants authority to another person called an agent, under a contract to enter into transactions in his behalf.

• principal

• trust officer

• beneficiary

• investment manager

This shall refer to any person or entity engaged in investment management activities as herein defined.

• principal

• trust officer

• beneficiary

• investment manager