PDIC Law Quizzer

1. The following are three main functions of PDIC, except?

a. Deposit Insurer
b. Receiver/Liquidator of Distressed Banks
c. Loan Functions
d. Co-regulator of BSP over banking institutions

2. Janelle is an employee of a large accounting firm. She earns a salary which is a bit more than what she
needs for a comfortable living. She is thus able to still maintain a P100,000.00 savings account, a
P50,000.00 checking account, a P30,000 money market placement, and P60,000.00 trust fund in a
commercial bank. Which of the four accounts are deemed insured by the PDIC?
a. The P100,000.00 savings account and P30,000.00 money market
b. The P50,000.00 checking account and P100,000.00 savings account
c. The P60,000.00 trust fund and P50,000.00 checking account
d. The P30,000.00 money market and P60,000.00 trust fund

3. The amount due to any bona fide depositor for legitimate deposits in an insured bank net of any
obligation of the depositor to the insured bank as of date of closure, but not to exceed P500,000.00.
a. Deposit
b. Insurance
c. Insured Deposit
d. Deposit Insurance

4. Paula is a depositor of McBank. She has five deposit accounts on the said bank, all under her name. Each
account has a balance of P150,000.00. The PDIC declared the bank insolvent and closed it. Paula was
unable to withdraw from her accounts. She then filed her claims with the PDIC. Which statement is the
most accurate?
a. Paula can claim a total of P500,000.00 from all five accounts.
b. Paula can only claim for one account, P150,000.00
c. Paula can claim a total of P750,000.00 from all five accounts.
d. Paula can claim P500,000.00 from each account.

5. What is PDIC’s maximum deposit insurance coverage?

a. P500,000.00
b. P500,000.00 per deposit account
c. P500,000.00 per depositor
d. P500,000.00 per depositor per bank
6. This means the unpaid balance of money or its equivalent received by a bank in the usual course of
business and for which it has given or is obliged to give credit to a commercial, checking, time, savings or
thrift account.
a. Deposit
b. Insurance
c. Insured Deposit
d. Deposit Insurance

7. Nemo is a depositor of McBank and RenBank. The latter is one of the branches of the former. He has
three deposit accounts on each of the said banks, all under his name. Each account has a balance of
P250,000.00. The PDIC declared both banks insolvent and closed it. Nemo was unable to withdraw from
his accounts. He then filed his claims with the PDIC. Which statement is the most accurate?
a. Nemo can claim a total of P500,000.00 from all six accounts.
b. Nemo can only claim for one account, P250,000.00
c. Nemo can claim a total of P1,000,000.00 from all six accounts.
d. Nemo can claim P500,000.00 from each account.

8. What happens when the depositor of a closed bank fails to file his claim within the 24-month period?
a. The depositor of the closed insured bank will be penalized by P5,000.00 per account.
b. Some rights of the depositor with respect to the insured deposit shall no longer be honored.
c. He can’t make a claim against the assets of the closed bank.
d. All rights of the depositor with respect to the insured deposit shall no longer be honored.

9. When should the depositor of a closed insured bank file his claim with PDIC?
a. 24 months from the date of initial deposit
b. 24 weeks from the date of incorporation
c. 2 years from the date of bank takeover
d. 24 years from the date of first anniversary of the bank takeover

10. Where do the payouts of insured deposit come from?

a. PDIC’s own funds.
b. From depositor’s deposit.
c. From the closed banks.
d. From someone above.

11. Statement 1: The PDIC is authorized to borrow from PDIC, provided that the said borrowings is for
insurance purposes.
Statement 2: A joint account shall be insured jointly from any individually-owned deposit account.
Statement 3: Trading securities are not considered Insured deposits as per RA No. 9516.
Statement 4: If Momobank, a Philippine bank, has a branch outside the Philippines, the said branch
automatically insured under PDIC.

a. All are correct

b. All are false
 c. 1 and 2 are correct, the rest are false
d. Only one is correct
e. Only one is false
f. 1 and 2 are false, the rest are correct
g. 3 and 4 are false, and so is 2.

12. XV Jensan has an individual savings account on Banko Caldero amounting to P120,000.00. He also, has a
joint account with his love, Khalimutten Munayen, amounting to P1200,000.00. If Banko Caldero
declared bankruptcy and subsequently closed due to fortuitous event, how much can he recover from
PDIC?
a. P500,000 on his individual savings account, and another P500,000 from the joint account.
b. P120,000 on his individual savings account, and another P500,000 from the joint account.
c. P120,000 on his individual savings account, and another P1,200,000 from the joint account.
d. No claims can be recovered from PDIC.

13. Momobank, a Korean-based bank, has a branch here in the Philippines. The said branch closed-down as
per Monetary Board. Which is not false?
a. The Momobank branch here in Philippines is not insured under PDIC because it is not a
Philippine bank
b. The directors of Momobank branch may elect to be insured under PDIC provided they are not
closed yet.
c. The depositors of Momobank can recover claims up to P500,000 from PDIC
d. No depositors can claim insurance proceeds from PDIC but they could still claim from the
remaining net assets of the said bank.

14. Janelle, a depositor, has an overdraft and savings account on a Philippine Bank named Banko de Boro,
amounting to 80,000 and 500,000 respectively. Total bank charges amounting to P6,900 were not yet
considered on arriving on such amounts. Interest for the whole banking year, amounting to P12,000.00
(net of interest from overdraft amounting to P8,000). PDIC closed the said bank due to financial distress.
Provided that Janelle filed her claims to PDIC, how much is she going to recover from PDIC?
a. P500,000
b. P425,100
c. P593,100
d. P433,100

15. Refer to item#14, how much is the insured deposit?

a. P500,000
b. P425,100
c. P593,100
d. P433,100
 16. Mr. Maparas is a depositor of JanelBank and PaulaBank. He has three deposit accounts on each of the
said banks, all under his name. Each account has a balance of P250,000.00. The PDIC declared both
banks insolvent and closed it. Mr. Maparas was unable to withdraw from his accounts. He then filed his
claims with the PDIC. Which statement is the most accurate?
a. Mr. Maparas can claim a total of P500,000.00 from all six accounts.
b. Mr. Maparas can only claim for one account, P250,000.00
c. Mr. Maparas can claim a total of P1,000,000.00 from all six accounts.
d. Mr. Maparas can claim P500,000.00 from each account.

17. How long does it take PDIC to settle a claim for insured deposit?
a. 6 months after the completion of requirements.
b. 6 months after filing of requirements
c. 6 months after bank closure
d. 6 months after the 24-month rule

18. Who pays the insurance premium to PDIC?

a. The bank
b. The depositor
c. The government
d. The taxpayers

19. Mr. Maparas is a depositor of BoomBank and BaamBank. The former is a branch of the latter. He has
three deposit accounts on each of the said banks, all under his name. Each account has a balance of
P250,000.00. He also has a joint account on each bank amounting to 1,000,000. The PDIC declared both
banks insolvent and closed it. Mr. Maparas was unable to withdraw from his accounts. He then filed his
claims with the PDIC. Which statement is the most accurate?
a. Mr. Maparas can claim a total of P500,000.00 from all six accounts.
b. Mr. Maparas can only claim for one account, P250,000.00
c. Mr. Maparas can claim a total of P1,000,000.00 from all accounts.
d. Mr. Maparas can claim P500,000.00 from each account.

20. Mr. Maparas is a depositor of BoomBank and BaamBank. He has three deposit accounts on each of the
said banks, all under his name. Each account has a balance of P250,000.00. He also has a joint account
on each bank amounting to 1,000,000. The PDIC declared both banks insolvent and closed it. Mr.
Maparas was unable to withdraw from his accounts. He then filed his claims with the PDIC. Which
statement is the most accurate?
a. Mr. Maparas can claim a total of P100,000.00 from all six accounts.
b. Mr. Maparas can only claim for one account, P250,000.00
c. Mr. Maparas can claim a total of P2,000,000.00 from all accounts.
d. Mr. Maparas can claim P500,000.00 from each account.

-MS