Question 1

1 / 1 pts
OOO Bank Corporation and LLL Corporation were merged into OO LL Bank
Corporation. So as not to create any unnecessary conflict, all the former directors of
both banks wanted to be appointed/elected as members of the Board of Directors of the
merged bank. Each bank used to have 11 members of the board. The maximum number
of directors of the merged bank is— 

  
21
 

  
No maximum is provided for by law
 

  
11
 

  
15
 
 
Question 2
1 / 1 pts
“Securities” issued to the public are required by law to be registered with-

  
The Philippine Stock Exchange
 

  
All of the choices
 

  
Securities and Exchange Commission
 

  
The Banko Sentral ng Pilipinas
 
 
Question 3
1 / 1 pts
Arnel, who is the Executive VP of ABC Corporation, a listed company, can be held liable
or guilty of insider trading if, he-

  
Bought shares of ABC Corporation when it was planning to acquire another company to
improve its asset base, the news of which increased the price of the shares in the Stock
Exchange.
 

  
All of the choices
 

  
Bought shares of ZZZ Corporation when he learned that ABC Corporation would acquire
ZZZ Corporation
 

  
Bought shares of XYZ Corporation, a sister company of ABC Corporation when he
learned that XYC Corporation was about to also list its share in the Philippine Stock
Exchange.
 
 
Question 4
1 / 1 pts
A bank can be placed under receivership when, if allowed to continue in business, its
depositors or creditors would incur:

  
Inevitable losses
 

  
Probable losses
 

  
A slight chance of losses
 

  
Possible losses
 
 
Question 5
1 / 1 pts
X, a private individual, maintains a dollar deposit with ABC Bank. X is suspected to be the
leader of a Kidnap for Ransom Gang and he is suspected of depositing all ransom money
in said deposit account which are all in US Dollars. The police want to open said account
to know if there are really deposits in big amounts. Which statement is most accurate? 

  
The same rules under Secrecy of Philippine Peso Bank Deposit Act will apply.
 

  
Because the deposit is in US Dollars, it is covered by Foreign Currency Deposit Act
which allows disclosure only upon the written permission of the depositor.
 

  
Approval from the court is necessary to order disclosure of the account.
 

  
Approval from the Monetary Board is necessary to open the account.
 
 
Question 6
1 / 1 pts
X maintains a savings deposit in the amount of P1M with ABC Bank Corporation. X also
has obtained a loan from ABC Bank Corporation in the amount of P1M. In case of
default:

  
Off-setting is not possible because the obligation of X is a “simple loan”.
 

  
ABC Bank can set-off the loan from the savings account being maintained by X with ABC
Bank.
 

  
Deposit accounts are usually earmarked for specific purpose hence off-setting is not
legally possible.
 

  
Set-off is not possible because legal compensation is not allowed in banking
transactions.
 
 
Question 7
1 / 1 pts
All senior officers of ABC Bank are entitled to obtain a housing loan. X is an Executive
VP for Operations of ABC Bank. She obtained a housing loan with the ABC Bank. Which
statement is most accurate? 

  
The housing loan of X, being a benefit for employees does not require a guaranty but
requires Board approval.
 

  
The housing loan of X requires the approval of the Board of Directors of the bank.
 

  
The housing loan of X, being a benefit for employees, will not require both a guaranty
and Board approval.
 

  
The housing loan of X requires a guarantor from somebody who is not connected with
the bank.
 
 
IncorrectQuestion 8
0 / 1 pts
A bank may acquire real property __________.

  
in case of properties mortgaged to it to secure a debt in good faith
 

  
through dacion en pago in satisfaction of a debt in favor of the bank
 

  
by purchase from a real estate corporation in the ordinary course of the bank’s business
 
   
All of the choices
 
 
Question 9
1 / 1 pts
Under the Anti-Money Laundering Act, a depositor’s bank account may be frozen
____________.

  
by the bank when the account is the subject of a suspicious or covered transaction
report
 

  
by the Court of Appeals upon verified ex parte petition by the AMLC and after
determination that probable cause exists that any monetary instrument or property is in
any way related to an unlawful activity
 

  
by the Regional Trial Court, upon ex parte motion by the AMLC, in a criminal
prosecution for money laundering pending before it
 

  
by the Anti-Money Laundering Council (AMLC) when the account belongs to the person
already convicted of money laundering
 
 
IncorrectQuestion 10
0 / 1 pts
An employee of a large manufacturing firm earns a salary which is just a bit more than
what he need for a comfortable living. He is thus able to still maintain a P10,000 savings
account, a P20,000 checking account, a P30,000 money market placement and a
P40,000 trust fund in a medium-size commercial bank. State which of the four accounts
are deemed insured by the PDIC.

  
only the savings account
 

  
all accounts are insured under the PDIC Law
 

  
only the savings account and checking account
 

  
savings account, checking account and trust fund account
 
 
Question 11
1 / 1 pts
 X is a depositor of AAA Bank. She has 3 deposit accounts all under her name. One, in
checking account, one in saving account and another one in time deposit account. Each
account has a balance of P250,000. AAA Bank became insolvent. PDIC closed the Bank.
X therefore is unable to withdraw from all of the accounts. She then filed her claims with
the PDIC. Which statement is most accurate? 

  
X can claim a total of P500,000 for all 3 accounts
 

  
X cannot claim anything from any of the deposit accounts
 

  
X can claim a total of P750,000 from all 3 accounts
 

  
X can only claim from 1 account of P250,000
 
 
Question 12
1 / 1 pts
The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit
records of an individual without court order except-

  
In Plunder cases
 

  
In an examination to determine the gross estate of a decedent
 

  
In cases filed by the Ombudsman
 

  
in an investigation for violation of Anti-Graft and Corrupt Practices
 
 
Question 13
1 / 1 pts
Which is not a suspicious transaction under the Anti-Money Laundering Law?

  
a transaction in cash or other equivalent monetary instrument involving a total amount
in excess of Five Hundred Thousand Pesos (P500,000) within one (1) banking day.
 

  
A teacher earning P25,000 a month is making P490,000 deposit monthly
 

  
the transaction is in a way related to an unlawful activity such as kidnapping for ransom
 

  
the client of the covered person is not properly identified
 
 
Question 14
1 / 1 pts
Statement 1- A single casino cash transaction involving an amount in excess of Five
million pesos (P5,000,000.00) is considered a covered transaction under the Anti-Money
Laundering Law.
Statement 2- A single cash transaction of real estate developers or brokers involving an
amount in excess of Seven million five hundred thousand pesos (P7,500,000.00) or its
equivalent in any other currency is also considered as a covered transaction under the
Anti-Money Laundering Law.

  
Only Statement 2 is true
 
   
Both statements are true
 

  
Both statements are false
 

  
Only Statement 1 is true
 
 
Question 15
1 / 1 pts
The purpose of the “Tender Offer” Rule is to:

  
All of the choices
 

  
Ensure that the shareholders who would also want to sell their shareholdings will have
the opportunity for a better price
 

  
Ensure an even playing field for all shareholders of a company in term of opportunity to
sell their shareholdings
 

  
Ensure that minority shareholders in a publicly listed company are protected in the sense
that they will equally have the same opportunity as the majority shareholders in terms
selling their shares
 
 
Question 16
1 / 1 pts
Which of the following is an exception to the secrecy of bank deposits which are in the
Philippine Pesos, but NOT an exception to the secrecy of foreign currency deposits? 

  
Upon PDIC and BSP inquiry into examination of deposit accounts in case there is a
finding of unsafe or unsound banking practice
 

  
Upon inquiry in cases of impeachment
 

  
Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an
application to compromise his tax liabilities on the ground of financial incapacity
 

  
Upon BSP inquiry into or examination of deposits or investments with any bank, when
the inquiry or examination is made in the course of the BSP’s periodic special
examination of said bank to ensure compliance with the AMLA
 
 
IncorrectQuestion 17
0 / 1 pts
The Anti-Money Laundering Law is a law that seeks to prevent money laundering
activities by providing for more transparency in the Philippine Financial System, hence
the following institutions are covered by the law, except:

  
banks and any financial institution
 

  
casino operators
 

  
None of the choices
 

  
jewelry dealers of precious stones
 
 
IncorrectQuestion 18
0 / 1 pts
All of the choices pertain to the powers of a commercial bank. Which one is the
exception?

  
Both the power of an investment house and the power to invest in non-allied enterprises
 

  
the power of an investment house
 

  
the power to invest in non-allied enterprises
 

  
issuance of letters of credit
 
 
IncorrectQuestion 19
0 / 1 pts
A receiver is appointed if the Monetary Board finds that a bank or quasi bank:

  
In both cases
 

  
is unable to pay its liabilities as they become due in the ordinary course of business
 

  
In neither of the two cases
 
  
is in the state of illiquidity or the bank fails or refuses to maintain a state of liquidity
adequate to protect its depositors and creditors
 
 
Question 20
2 / 2 pts
Statement 1- BSP may order the closure of a bank even without prior hearing. It may
rely on the report of either the conservator, receiver or the head of the supervising and
examining department.
Statement 2- The principle embodied in the first statement is called the “Close now-hear
later doctrine.”
   
Only Statement 2 is true
 

  
Both statements are true
 

  
Only Statement 1 is true
 

  
Both statements are false
 
 
Question 21
2 / 2 pts
Statement 1- No director or officer of any bank shall, directly or indirectly, for himself or
as the representative or agent of others, borrow from such bank nor shall become a
guarantor, indorser or surety for loans from such bank to others, or in any be an obligor
or incur contractual liability to the bank.
Statement 2- In case of DOSRI accounts the law requires an approval requirement,
reportorial requirement and ceiling requirement.

  
Both statements are true
 

  
Only Statement 1 is true
 

  
Both statements are false
 

  
Only Statement 2 is true
 
 
Question 22
2 / 2 pts
Statement 1- A universal bank can engage in a non-allied undertaking.
Statement 2- A conservator has the power to revoke valid and perfected contracts in
favor of third person.

  
Only Statement 1 is true
 

  
Only Statement 2 is true
 

  
Both statements are true
 

  
Both statements are false
 
 
Question 23
2 / 2 pts
Statement 1- A bank under a receivership can still grant new loans and accept new
deposits. 
Statement 2- The law requires the bank to exercise the diligence of a good father of the
family in handling bank deposits.

  
Only Statement 2 is true
 

  
Both statements are true
 

  
Only Statement 1 is true
 

  
Both statements are false
 
 
Question 24
2 / 2 pts
Statement 1: Lawyers and accountants acting as independent legal professionals are not
required to report covered and suspicious transactions if the relevant information was
obtained in circumstances where they are subject to professional secrecy or legal
professional privilege.
Statement 2: Should a transaction be determined to be both a covered and suspicious
transaction, the covered institution shall report such transaction as covered transaction.

  
Only Statement 1 is true
 

  
Both statements are true
 
  
Only Statement 2 is true
 

  
Both statements are false
 
 
Question 25
1 / 1 pts
This law aims to protect its citizens from a lack of awareness of the true cost of credit to
the user by assuring a full disclosure of such cost with a view of preventing the
uninformed use of credit to the detriment of the national economy.

  
Anti-Money Laundering Law
 

  
Securities Regulation Code (SRC)
 

  
Law on Secrecy of Bank Deposits
 

  
Truth in Lending Act
 
 
Question 26
2 / 2 pts

Account Name per Bank Type of Deposit Balance Account Number

Records

Juan Dela Cruz or Maria Savings Deposit P500,000 1

Dela Cruz

XYZ Corporation
Time Deposit P500,000 2

Juan Dela Cruz and ABC Corporation

Demand Deposit P500,000 3

How much is the insured deposit of Juan Dela Cruz?

  
0
 

  
1,000,000
 

  
250,000
 

  
500,000
 
 
Question 27
2 / 2 pts

Account Name per Bank Records Type of Deposit Balance Account Number
 Juan Dela Cruz or Maria Dela Cruz Savings Deposit P500,000 1

XYZ Corporation
Time Deposit P500,000 2

Juan Dela Cruz and ABC Corporation

Demand Deposit P500,000 3

How much is the uninsured deposit of Juan Dela Cruz?

  
250,000
 

  
1,000,000
 

  
0
 

  
500,000
 
 
IncorrectQuestion 28
0 / 2 pts

Account Name per Bank Records Type of Deposit Balance Account Number

Juan Dela Cruz or Maria Dela Cruz Savings Deposit P500,000 1

XYZ Corporation
Time Deposit P500,000 2
 Juan Dela Cruz and ABC Corporation
Demand Deposit P500,000 3

How much is the insured deposit of ABC Corporation?

 
 
 

  
1,000,000
 

  
500,000
 

  
0
 

  
250,000
 
 
Question 29
2 / 2 pts
If for instance the Account provides “Juan Dela Cruz BY Maria Dela Cruz or Pedro Dela
Cruz”, to whom will the insured deposit belong?

  
To all of them
 

  
Juan Dela Cruz
 

  
None of the choices
 

  
Either Maria Dela Cruz or Pedro Dela Cruz
 
 
IncorrectQuestion 30
0 / 1 pts
Which is an exempt transaction under the Securities Regulation Code Law?

  
Sale by issuer to 20 persons in the Philippines during any 12 month period
 

  
Those sold or offered for sale in a regular transaction, the owner not being an
underwriter
 

  
Distribution by the corporation of securities to its stockholders as dividends
 

  
Sale of capital stock of a corporation using the facilities of PSE
 
 
Question 31
1 / 1 pts
BP 22 (Bouncing Checks Law) which punishes the act of issuing or making of worthless
checks or a check that is dishonored upon its presentation for payment is:

  
Either of the two choices
 

  
Neither of the two choices
 

  
Malum prohibitum
 

  
Malum in se
 
 
Question 32
1 / 1 pts
The following are the elements of BP 22, except:

  
Drawing or issuing a check to apply to an account for value
 

  
There is false pretenses or deceit on the part of the drawer.
 

  
There is knowledge on the part of the drawer that he does not have sufficient funds with
the check when the check is presented for payment
 

  
There is dishonor by non-payment for fund insufficiency or for stop payment order of
the drawer
 
 
Question 33
2 / 2 pts
Jose visited a friend in his office, Chiz Moso, a bank manager, While having a friendly
conversation Jose asked Chiz Moso if their friend, Rizal has an existing account with the
bank. Chiz Moso answered “Yes” and Jose further asked for the amount which Chiz
Moso after verifying from the bank computer answered “P2.5 Million.”
Question 1: Did Chiz Moso violate the Law in Secrecy of Bank Deposit in informing Jose
that Rizal has an existing bank account?
Question 2: Did Chiz Moso violate the Law in Secrecy of Bank Deposit in divulging the
amount to Rizal?

  
No, No
 

  
Yes, No
 

  
Yes, Yes
 

  
No, Yes
 
 
Question 34
1 / 1 pts
Which of the following is not covered by Unclaimed Balances Law?

  
Commercial Banks
 
  
Building and Loan Associations
 

  
Pawnshops
 

  
Trust Companies
 
 
Question 35
1 / 1 pts
Under the AMLA, this principle provides that no administrative, criminal or civil
proceedings shall lie against any person for having made a covered transaction or
suspicious transaction report in the regular performance of his duties and in good faith,
whether or not such reporting results in any criminal prosecution under the AMLA or
any other Philippine law:

  
Safe Harbor Provision Clause
 

  
Justifying Circumstances Clause
 

  
Exempting Circumstances Clause
 
   
Good Faith Clause
 
 
Question 36
1 / 1 pts
As preventive measure, covered persons under the AMLA shall maintain and safely store
for __________ from the dates of transactions all records of customer identification and
transaction documents.

  
Three (3) years
 

  
Five (5) years
 

  
Ten (10) years
 

  
Seven (7) years
 
 
Question 37
1 / 1 pts
The highest-policy making body of the cooperative:

  
Board of Trustees
 

  
General Assembly
 

  
Committees
 

  
Board of Directors
 
 
Question 38
1 / 1 pts
A cooperative acquires juridical personality:

  
From the time it is organized
 

  
From the time it is issued a Certificate of Registration by the Cooperative Development
Authority
 

  
From the time it commences operation
 

  
From the time the application for registration is submitted to the Cooperative
Development Authority
 
 
Question 39
1 / 1 pts
For purposes of prompt and intelligent decision-making, the general assembly may by a
______________, present and constituting a quorum, delegate some of its powers to a
smaller body of the cooperative.

  
3/4 vote of all its members with voting rights
 

  
Majority of all its members with voting rights
 

  
3/4 vote of all its members
 

  
2/3 vote of all its members with voting rights
 
 
IncorrectQuestion 40
0 / 1 pts
Quorum required in meeting of the members of a cooperative:

  
At least 25% of all voting members
 

  
At least 25% of all members, voting or non-voting
 

  
At least majority of the members entitled to vote
 
  
At least 50% of all voting members
 
 
Question 41
1 / 1 pts
The members of the following committee shall be appointed by the general assembly:

  
Gender and development committee
 

  
Education and training committee
 

  
Ethics committee
 

  
Election committee
 
 
IncorrectQuestion 42
0 / 1 pts
What is the required measure for the removal of an elective officer of a cooperative?

  
2/3 votes of the members of the Board of Directors and constituting a quorum
 

  
2/3 votes of the regular members of the general assembly present and constituting a
quorum
 

  
3/4 votes of the members of the Board of Directors and constituting a quorum
 

  
3/4 votes of the regular members of the general assembly present and constituting a
quorum
 
 
Question 43
1 / 1 pts
A member who has no right to vote nor be voted upon and shall be entitled only to such
rights and privileges as the bylaws may provide:

  
Irregular member
 

  
Regular member
 

  
Associate member
 

  
Subsidiary member
 
 
IncorrectQuestion 44
0 / 2 pts
Statement 1- The depositor pays an insurance premium so that their deposits will be
insured with the PDIC.
Statement 2- Deposits maintained in branches and subsidiaries of foreign banks
operating in the Philippines are not required to be insured with the PDIC.
   
Both statements are true
 

  
Both statements are false
 

  
Only Statement 2 is true
 

  
Only Statement 1 is true
 
 
Question 45
2 / 2 pts
Statement 1- If the bank can not be restored to its financial health upon
recommendation of the conservator or receiver or head of the supervising and
examining department, BSP shall file the petition with the RTC for Assistance in
Liquidation.
Statement 2- One peso coins and coins of higher peso value are legal tender for
obligations not exceeding P1,000 

  
Both statements are true
 

  
Only Statement 2 is true
 

  
Only Statement 1 is true
 

  
Both statements are false
 
 
Question 46
2 / 2 pts
he following depositors have the following accounts with DDD Bank:
 
I. Account 1- John (P500,000)
II. Account 2- John or Mary (P600,000)
III. Account 3- John and Peter (P500,000)
IV. Account 4- John or Mary or Peter (450,000)
 
Which of the following statements is false?

  
Shares of each co-owner in each of the joint accounts are added together and insured up
to P500,000 and shares in each singly-owned deposit account are als
 

  
Account 1 is entitled to a separate deposit insurance coverage of P500,000.
 

  
None of the choices
 

  
In Account 2, Mary is entitled to an insured deposit of P250,000.
 
 
Question 47
1 / 1 pts
It is the publicly declared intention by a person alone or in concert with others to buy
securities of a public corporation. It is an invitation by the acquirer of shares of a
company for other stockholders to tender their shares to the acquirer so that they may
sell their shares in the same price and conditions as the previously acquired shares.

  
Short Sale
 

  
Insider Trading
 

  
Margin Trading
 

  
Tender Offer