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BANKING AND FINANCIAL INSTITUTIONS - 1ST EXAM

Total questions: 45

Worksheet time: 45mins

Name
Class
Date
1.

(a)   is like the heart of the human beings, if it stops working then the person is dead in the same way that if the financial system stops working, then the economy would collapse.

2.

(a)   is composed of banking institutions and nonbank financial intermediaries, including commercial banks, specialized government banks, thrift banks and rural banks.

3.

The ______________________ and the _______________________ maintained the regulatory and supervisory control.

(a)  

4.

It is also composed of offshore banking units, building and loan associations, investment and brokerage houses and finance companies.

a)

FINANCIAL MARKET

b)

FINANCIAL SYSTEM

5.

Financial intermediaries rendered by the financial intermediaries bridge the gap between the back of knowledge on the part of investors and increasing sophistication of financial instruments and markets.

a)

TRUE

b)

FALSE

6.

A financial services is a claim against a person or an institution for the payment at a future data a sum of money and/or a periodic payment in the form of interest or dividend.

a)

TRUE

b)

FALSE

7.

Capital market is a market for short-term securities with a maturity of one year or less money market is a market for long-term securities, that is, securities having a maturity period of one year or more.

a)

TRUE

b)

FALSE

8.

It deals in the new financial claims or new securities, and, therefore, they are also known as ‘new issue markets’.

a)

PRIMARY MARKET

b)

SECONDARY MARKET

9.

It deals in securities already issued or existing or outstanding.

a)

PRIMARY MARKET

b)

SECONDARY MARKET

10.

Financial market are business organizations that act as mobilisers and depositors of savings and as purveyors of credit or finance.

a)

TRUE

b)

FALSE

11.

The first credit institution in the Philippines

a)

The ObrasPias

b)

Banco Espanol-Filipino de Isabela II

12.

(a)   is now known as Bank of the Philippine Islands

13.

It is the oldest standing bank in the Philippines and in the whole of Southeast Asia.

(a)  

14.

(a)   was established and in 1916 all of its assets and liabilities were transferred to the newly organized Philippine National Bank.

15.

Financial Intermediaries is crucial to the allocation of these resources

a)

TRUE

b)

FALSE

16.

Governments attempt to stabilize or regulate an economy by implementing specific policies to deal with inflation, unemployment, and interest rates

a)

Government Policy

b)

Risk Management

17.

The financial markets give investors the ability to reduce the systemic risk by providing ________ . It thus allows for easy buying and selling of assets when needed.

a)

Liquidity

b)

Savings

18.

An efficient payment system allows businesses and merchants to collect money in exchange for their products or services.

a)

Payment System

b)

Liquidity

19.

A (a)   allows its participants to prosper and reap the benefits. It also helps in borrowing and lending when needed. In simpler words, it will circulate the funds to different parts of an economy

20.

A bad financial systems have adequate financial institutions, markets and intermediaries in place to handle all of the transactions the people and businesses who use the system desire.

a)

TRUE

b)

FALSE

21.

(a)   is understood to be anything that is accepted for payment of products and services or for the repayment of debt.

22.

It is a medium of exchange and acts as a store of value.

(a)  

23.

_____________________ and ____________________ help in the working of the financial system by means of financial instruments.

(a)  

24.

They assist to determine the financing combination and extend their professional services up to the stage of servicing of lenders.

(a)  

25.

This is an important component of financial system

(a)  

26.

It can be broadly categorized into money markets and capital markets

a)

Financial Markets

b)

Financial Instruments

27.

They mobilize the savings of investors either directly or indirectly via financial markets, by making use of different financial instruments as well as in the process using the services of numerous financial services providers.

a)

Financial Institutions

b)

Financial Markets

28.

It facilitate smooth working of the financial system by making investors and borrowers meet.

a)

Financial institutions

b)

Financial markets

29.

It protects investors from various financial risks through insurances and other types of contracts.

a)

Government Policy

b)

Risk Management

30.

Good financial systems have financial markets that are large enough to support as many investors as are willing to take part in the profit.

a)

TRUE

b)

FALSE

31.

It consist of services provided by Asset Management and Liability Management Companies.

a)

Financial services

b)

Financial Market

32.

One of the functions of Financial market is to maximize profit

a)

TRUE

b)

FALSE

33.

(a)   is an independent national authority that conducts monetary policy, regulates banks, and provides financial services including economic research.

34.

(a)   adopted the recommendation of the Joint IMFTICB Banking Survey Commission which made a study of the Philippine banking system.

35.

The Bureau of Banking under the Department of Finance took over the task of banking supervision.

(a)  

36.

The Bill was signed into law as Republic Act No. 265 ( The Central Bank Act) by President Elpidio Quirino.

a)

JUNE 15, 1948

b)

FEBRUARY 1948

37.

The BSP was established to replace the CBP as the country's central monetary authority.

a)

July 3, 1993

b)

July 31, 1993

38.

The BSP formulates and implements monetary policy aimed at influencing money supply consistent with its primary objective to maintain price stability.

a)

LIQUIDITY MANAGEMENT

b)

CURRENCY ISSUE

39.

The BSP extends discounts, loans and advances to banking institutions for liquidity purposes.

a)

LENDER OF LAST RESORT

b)

FINANCIAL SUPERVISION

40.

It is the largest eagle and is a symbol of strength, clear vision and freedom, the qualities we aspire for as a central bank.

(a)  

41.

Location of the Security Plant Complex (BSP)

(a)  

42.

Three regional offices of BSP

(a)  

43.

It responsible for the prodution of Philippine Currency, security documents, and commemorative medals and medallion.

a)

SECURITY PLANT COMPLEX

b)

EXECUTIVE MANAGEMENT SERVICES

44.

(a)   mainly responsible for the management of human, financial, and physical

45.

Present governor of BSP

(a)