Financial Institutions Quiz No. 1 BSBA-FM 1C

What is the primary role of financial institutions?

• To collect taxes from citizens

• To act as intermediaries between fund sources and fund users

• To regulate the stock market

• To provide social services

What is the main function of a bank?

• To sell insurance

• To accept deposits and provide loans

• To build roads and bridges

• To manage the stock exchange

Thrift banks are also known as:

• Commercial banks

• Investment banks

• Savings and loans associations (S&Ls) or thrifts

• Credit unions

What is the role of rural banks?

• To provide financial services exclusively to large corporations

• To mobilize financial resources and extend credit to farmers and small businesses in rural areas

• To manage the national budget

• To regulate international trade

What is inflation?

• A decrease in the general price level

• A sustained increase in the average price of goods and services

• A sudden drop in the stock market

• An increase in unemployment

What does the Consumer Price Index (CPI) represent?

• The average price of a single commodity

• The average price of a standard basket of goods and services consumed by a typical Filipino family

• The total value of all goods and services produced in the Philippines

• The interest rate charged by banks on loans

What is the purpose of open market operations?

• To regulate the price of oil

• To expand or contract money supply by buying or selling government securities

• To control the weather

• To provide social services to the poor

What is the role of the Bangko Sentral ng Pilipinas in financial stability?

• To regulate the price of oil

• To control inflation and ensure a stable monetary system

• To provide loans to businesses

• To manage the national budget

What is the main function of the BSP in relation to banks?

• To provide loans to banks

• To collect taxes from banks

• To serve as the supervisor and regulator of all banks in the Philippines

• To manage the daily operations of banks

Which of the following best defines money?

• Anything that is valuable and can be used to buy things

• Any item or commodity that is generally accepted as a means of payment

• Only coins and banknotes issued by the government

• Gold and silver bullion