PRETEST

What do financial institutions do?

• 
  Provide healthcare services

• Offer legal advice

• 
  Sell products online

• Connect savers or investors with borrowers or businesses

What is the purpose of liquidity management?

• To ensure a company has enough cash to meet its financial obligations

• To increase the company's debt

• To maximize profits through risky investments

• To reduce the number of employees in a company

What is the main goal of asset management?

• To avoid financial obligations

• To ensure banks have enough capital to cover risks

• To minimize profits

• To increase liabilities

What is the danger of interest rate risk?

• Decrease in the value of investments due to interest rate changes

• Stable returns on investments

• Increase in the value of investments

• No impact on investments

What does ALM stand for in financial management?

• Accounting and Legal Management

• Asset Loss Management

• Advanced Loan Management

• Asset Liability Management

What is the purpose of hedging in managing interest rate risk?

• To align durations of assets and liabilities

• To maximize risk

• To protect against interest rate fluctuations

• To increase exposure to potential losses

What does RA No. 8791 regulate?

• Consumer electronics

• General Banking Law

• Food industry

• Automobile manufacturing

What is the main goal of credit risk management?

• To operate under unsound credit granting process

• To increase credit exposure

• To avoid credit administration

• To establish an appropriate credit risk administration

What role do financial institutions play in preventing chaos in the economy?

• 1. By promoting risky investments

• 1. By facilitating international trade

• 1. By maintaining liquidity in financial markets

• 1. By encouraging speculative bubbles

What is the purpose of RA No. 9160, the Anti-Money Laundering Act?

• To encourage malicious financing activities

• To promote money laundering

• To increase suspicious financial transactions

• To prevent money laundering