Global Finance Long Test

The primary role of central banks in global finance is to:

• Print and distribute credit cards

• Control inflation and stabilize the currency
  
  

• Offer personal loans

• Organize stock trading events

Which of the following is a key factor that drives foreign investment in emerging markets like the Philippines?

• High labor costs

• Political instability

• Growth potential and market opportunities
  

• Strict banking regulations

A common risk that businesses face in international finance due to fluctuating exchange rates is known as:

• Inflation risk

• Foreign exchange risk

• Interest rate risk

• Market Risk

Which of these is a benefit of mobile banking?

• Higher transaction fees

• Only available during business hours

• 24/7 access to financial services

• Requires a desktop computer

The technology that powers most cryptocurrencies, ensuring secure and decentralized transactions, is called:

• Artificial Intelligence

• Blockchain

• QR Code

• Cloud Computing

1. Which of the following best describes "decentralized finance" (DeFi)?

• Financial services controlled by central banks
  
  

• Financial services that operate without intermediaries through blockchain technology

• A type of bank lending used only in developing countries

• Digital banking services offered by traditional banks

1. Which regulatory body in the Philippines oversees the promotion of digital finance and electronic banking?

• SEC

• BIR

• DOF

• BSP

1. Which of the following is a key focus of sustainable finance?

• Maximizing short-term profits

• Considering environmental, social, and governance (ESG) factors in investments

• Only investing in tech companies

• Ensuring bank mergers and acquisitions

1. What is a primary advantage of mobile banking in the Philippines?

• It reduces competition in the banking sector.

• It is accessible to more people due to widespread smartphone usage.

• It decreases transparency in transactions.

• It increases the costs of financial transactions.

What is the primary purpose of Basel III regulations in global finance?

• To deregulate financial markets

• To encourage cryptocurrency adoption

• To strengthen banks’ capital requirements and manage risk

• To promote trade between emerging markets