FM 305 Quiz 1

What is the primary function of financial institutions?

• Printing money

• Facilitating the allocation of economic resources

• Enforcing trade laws

• Collecting taxes

Which of the following is NOT a part of the financial system?

• Financial institutions

• Financial markets

• Manufacturing industries

• Central banks

What is the primary role of the Bangko Sentral ng Pilipinas (BSP)?

• To regulate local businesses

• To oversee financial stability and monetary policy

• To manage real estate markets

• To issue credit cards

Which financial instrument represents ownership in a company?

• Bonds

• Stocks

• Loans

• Mutual funds

The financial market is a place where:

• Only the government can invest

• Buyers and sellers trade financial instruments

• Physical goods are exchanged

• Taxes are collected

Which financial institution accepts deposits and makes loans?

• Investment banks

• Commercial banks

• Pawnshops

• Government regulatory agencies

What is the main goal of the International Monetary Fund (IMF)?

• Regulating global trade

• Overseeing the stability of the world's monetary system

• Issuing global currency

• Providing retirement benefits

The World Bank primarily provides funding for:

• Global stock markets

• Development projects in low-income countries

• Individual investors

• Cryptocurrencies

What is an example of a government bank in the Philippines?

• Metrobank

• BDO

• Development Bank of the Philippines

• Citibank

Which financial institution is responsible for providing loans to farmers and businesses in rural areas?

• Universal Banks

• Cooperative Banks

• Thrift Banks

• Investment Banks