Choose the right answer.

I. MULTIPLE CHOICE: Choose the correct answer. (1 point each} 1. When banking: what does "interest" mean? Money paid for the use of borrowing that money Something grabs your attention Money a business makes after it pays forthe cost of operating Money is withdrawn from your account 9-0575\" 2. A bank's working capital represents the portion of the current assets financed through long term funds. This indicates (1) networking capital andfor (2) gross working capital. a. (1) is correct b. (2) is correct c. Both (1) and (2} are correct d. None of the above 3. Mr. Lucky has a definite plan to deposit 2M in a commercial bank. Why are reserves important at a bank? a. g the bank has enough money to pay out when customers want to withdraw their money. b. g the bank looks important to the other banks in the neighborhood c. g you can deposit money and the bank can loan out your money to other customers d. g you can deposit money with middlemen to the bank 4. The loan given by Land Development Banks is for a. Shortterm b. Mediumterm c. Longterm d. None of the above 5. How can you make money in your savings account? a. You draw pictures of money and deposit it b. Your money just grows in the bank on its own 0. The bank pays you to thank you for your deposit d. The bank pays you to use some of your money to loan to others 6. Assume that there is an in crease in money's own rate. all other interest rates remaining unchanged. Which of the following is likely to describe the effect on the demand for money and the demand for loans? a. Money D increases: loan D tails b. Money D and loan D increase c. Money D and loan D tall d. Money D falls, loan D increases. T. Banks that accept deposits from the public and lend them mainly to commerce forshort periods. This is best described in a. Commercial Bank in. Industrial Bank c. Agricultural Bank d. Central Bank 8. A company who accepts demand deposit is called a. Jointstock company b. Banking company c. Manufacturing Company d. IT company 9. How does the bank make extra money on loans? a. The bank charges people for borrowing money, called "interest." b. The bank takes money from your account. c. The bank asks other banks for donations. d. The oankiust gets more money printed. 10. This is a financial institution, that offers many of the services as the traditional transaction in a bank. It typically operates for profit and is formed by \"members" who pool their funds together and control the institution. Membership is required to open an account. l'\\.J a. Retail banks b. Investment Banks c. Savings and loan associations d. Credit Unions 11. Any banking institution's objective is to increase money through depositors and loans. Conceptually, anything is considered money if it functions as: a. A medium of exchange o. A store of value c. A unit oi account d. All the above 12. Banks and credit unions generate money in the economy by: a. Selling governments bonds o. Making loans c. Plinting money d. All of these are correct 13. Mr. Arnold M. Santiago is a successful Filipino entrepreneur. and he is planning to deposit his money to make it double. Which type of deposit earns a higher interest rate? a. Current deposits o. Saving deposits c. Fixed deposits d. ATM deposits 14. Etanks pay interest on a. deposits o. Loans c. Both {a} and to] d. None of the above 15. In which type of deposit. the high rate of interest is provided by the Bank? a. Current Account o. Recurring Deposit Account o. Fixed Deposit Account o. Savings Account 16. Bank deposit refers to a. The amount of money standing on the credit of a customer ofa bank b. The term used by the Central bank to refer to the total deposits of member banks c. The amount of money standing to the debit as a customer ofa bank d. All the above 1?. This bank offers nancing services in four major areas: infrastructure and logistics: small and medium enterprises, social services and the environment. a. Security Bank Corporation o. Land Bank of the Philippines c. Development Bank of the Philippines [DBPJ (1. BBC) Unibank 13. What is an arrangement that facilitates the transfer of funds between two parties? a. Cash management system b. Monetary system c. Financial system d. Payment system 19. EiSP supervises a system called Philippine Payments and Settlements System. a. True o. False 20. Financial institutions facilitate loans and investments by channeling the savings of individuals, businesses: and governments. Their main purpose is to serve their customers as a fund source. a. True b. False 21. Land Bank of the Philippines has a special focus on serving the needs of entrepreneurs and hustlers. a. True b. False 22. Examples of these types of banks are Wells Fargo, Chase, and Regions 9. Commercial banks b. Credit unions c. Charters d. Al Amanah Islamic Investment Bank 23. Refers to engaging in underwriting, in which they guarantee a price to a firm issuing stocks or bonds and then make a profit by selling the stocks or bonds at a higher price. 9. Investment Banks b. Savings and Loan Associations c. Insurance companies d. Stock Savings and Mortgage Bank 24. Which of the following banks closed on March 15, 2011, because of a lack of cash to fund withdrawals? This bank also closed from 1985 to 1902. 9. Bobo bank b. Asia Trust Development bank c. Equicog Savings bank d. Banco Filipino 25. A nonprofit financial cooperative owned by and operated for the benefit of its members; services offered only to its members. a. Credit union b. Commercial bank c. Savings and loans associations d. Thrift bank26. Service offered by most banks and credit unions that requires a Personal Identification Number (PIN) to check account balances, make cash withdrawals and deposits, and move money from one account to another. 9. Electronic funds transfer b. Electronic financial transitioning c. Automated teller machine d. Digital bank 27. Is called a check card, and allows you to make purchases by swiping your card through a point of sale (POS) terminal that is usually located at the merchant's checkout counter s. Debit card b. Credit card C. ATM card d. Bank net card 28. A special type of check that the bank guarantees to pay; paid with cash withdrawn from your account a. Cashier's check b. Certified check c. Stop-payment order d. Cash account check 29. Mr. Dudight Dela Cruz has planned to open an account in the bank. One reason for him to recognize is that a bank does not care about the quality of his bank's assets due to: 9. Most people cannot distinguish an asset from a liability b. The quality of a bank's assets changes almost daily c. They assume the bank only has high-quality assets d. With deposit insurance, there isn't any real reason to care; their deposits are protected even if the bank fails30. "Many individuals believed the financial institution is responsible for the oversight and management of all other banks\". Which of the banks below is suited to the statement given? a. Retail bank b. Commercial banks o. Rural bank d. Central bank 31. Mr. Ramos worked at a bank for five years, and he recognized the majority of large banks offer account a. Mortgage b. Lending Deposit d. Insurance loans 32. It exists to provide a wide variety of deposit lending and investment products to individuals businesses or both. a. Financial institutions b. Lending institutions c. Rural institutions d. Commercial institutions 33. They tend to charge their customers fewer fees than traditional banks. a. Mortgage banks b. Retail banks c. Internet banks d. Commercial bank 34. ABC company was established in the year 2018 by a CEO and in one of his contingency planning, he finally decided to ask his subordinate which bank worked directly with the business a. Savings b. Retail C. Land bank d. Commercial bank 35. Financial institutions mutually held and provide no more than 20% of the total leading to the business full under this category. a. Savings and lending association b. Savings and loan association c. Loan association d. Sayi Association 36. Almost all banking institutions rely on Interest rates which are important to financial institutions. Thus, an interest rate increases resulting the cost of acquiring funds and the income from assets. a. Decreases; decreases b. Increases; increasesc. Decreases, increases d. Increases; decreases 37. Typically, increasing interest rates, result to: a. Discourage individuals from saving b. Discourage corporate investments C. Encourage corporate expansion d. Encourage corporate borrowing. 38. Financial markets have the basic function of a. Bringing together people with funds to lend and people who want to borrow funds b. Assuring that the swings in the business cycle are less pronounced c. Assuring that governments need never resort to printing money d. Both (a) and (b) of the above 39. Mr. Romero has a plan to register for a PNB Digital Banking user account. Which of the following is not considered: a. PNB Digital Banking b. PNB Internet Banking C. PNB Network Banking d. PNB Mobile App 40. Participates in many banking activities and is both a commercial bank and an investment bank as well as providing other financial services. This is best described to a. Commercial bank b. Thrift bank c. Rural bank d. Universal bank 41. Is a type of financial institution that accepts deposits, offers to check account services, makes various loans, and offers basic financial products like certificates of deposits and savings accounts to individuals and small businesses a. Commercial Bank b. Thrift bank c. Rural bank d. Universal bank42. Engaged in accumulating savings of depositors and investing them. It also provides short- term working capital and medium- and long-term nancing to businesses engaged in agriculture, services, industry, and housing, diversied nancial and allied services, and to their chosen markets and constituencies, especially small- and medium- enterprises and individuals. This is described as: . Commercial Bank . Thrift bank Rural Bank Universal Bank sperm 43. The most important reason for a Filipino entrepreneurfinvestor to plan for a bank deposit is a. The credit worthiness of the bank b. The Bank does not invest in the securities c. The Bank offers a guarantee d. All the above 44. Which of the following is not a function of a Bank? a. To accept deposits b. To waive loans c. To grant advances d. To supply input to farmers 45. What matters most, during a bank run is: a. The number of loans outstanding b. The solvency of the bank c. The liquidity of the bank d. The size of the bank's assets