FIN 121 ANSWER KEY

Which of the following is a primary function of money?

A: to serve as a unit of account

Transaction costs
A: include the financial and non-financial costs of completing a given economic
transaction

The following are physical features of Philippine money are present in a paper bill,
except?
A: Material coding

Characteristics of money
A: Money must be available but only in limited supply

A Php985,000 price tag on a new car is an example of money as

A: a unit of account

Money is capable of being capable of passing through the process of casting to

make sure its authoritative stamp or markings.
A: Malleability

A medium of exchange is
A: something that is generally acceptable in exchange for goods and services

A gold standard is a monetary system wherein the exchange rate is determined by

A: the price of gold

The following are considered limitation(s) of the barter system, except?

I. Two traders must have and should want to trade products or services of equal
value.
II. Two traders must be ready to make the trade at the same time as ownership
expanded, society grows and becomes anonymous.
A: neither I or II

Function of money which eliminates certain challenges that every barter transaction
presents.
A: medium of exchange

The fact that using money avoids the double coincidence of wants necessary in a
barter economy illustrates which function of money?
A: medium of exchange

Function of money which presents a very strong influence on the quality of goods
and services that are produced
A: medium of exchange

Compared to barter system, a monetary system

A: reduces transactions costs and facilitates exchanges

A money which originates from the use of high value crops or items as the means of
exchanging goods is called commodity money
A: true

Money in the context of supply is capable of being increased or decreased is what

attribute of money?
A: elasticity

It can be a shell, a metal coin, or a piece of paper with historic image on it, but the
value that people place on it has nothing to do with its physical value.
A: money

Fiat Money is Money…

A: without or very little intrinsic value

A unit of account
A: something that circulates and provides a standardized means of evaluating the
relative price of goods and services

Function of money in which it is used not only for present transactions but also for
future transactions.
A: Store of value

History has produced two broad monetary standards

A: commodity-money standard and fiat-money standard

The functions of money are

A: medium of exchange, unit of account, and store of value

Answer briefly. Saving is what function of money?

A: store of value

Which of the following affects the amount of money a person is willing to hold?
A: all of these

What is not an example of commodity money?

A: paper

The following statements refer to agricultural credit, except?

A: It involves financial outlay intended for capital expenditures

Under a fiat-money standard the value of the circulating medium of exchange is

guaranteed by
A: by the taxing and borrowing powers of the government

Money should be capable to physically stay long enough for circulation is what
attribute of money?
A: durability

The following are examples of credit money, choose the incorrect one
A: P1,000 bill

Which of the following applies to money when it serves as a store of value?

I. Money is a store of value because it is an agreed measure for stating goods'
prices.
II. The more stable money's value, the better it serves as a store of value.
III. When money serves as a store of value, it requires a double coincidence of
wants.
A: II only

You deposit P40,000 in currency in your checking account. The bank holds 20
percent of all deposits as desired reserves. As a direct result of your deposit, your
bank will create
A: P32,000 of new money

Which of the following is money?

A: checking deposits

Store of value
A: the ability of money to command purchasing power in the future

It is an attribute of money that it should have the capability of being carried anywhere
with ease.
A: portability
The superiority of one monetary standard over another is dictated as
A: public confidence

Barter is inconvenient because

A: of the necessity of the double coincidence of wants.

Bimetallism is a monetary system

A: based on the value of two precious metals usually gold and silver

The functions of money are

A: medium of exchange, unit of account, and store of value.

Statement I: During inflation where production is low with corresponding oversupply

of money, it is rational thing for the government to reduce money supply
Statement II: During deflation, which is characterized by scarcity of money, money
supply should be available to be flooded into the circulation.
A: Both statements are correct

The primary function of money is

A: the medium of exchange function

The following are examples of commodity money, except?

A: promissory note

The following refers to credit. Which of the following statements is correct?

A: In credit there is always future time involved.

If you fall behind on your credit card payments, or you become delinquent the credit
card company is not allowed to report this to anyone. This is confidential
information.
A: false

If you keep poor records and write a check for more than you have in your checking
account, you need
A: overdraft protection

Credit blocking occurs when

A: your line of credit is reduced by the estimated cost of an anticipated purchase.

Service charge" includes interest, fees, service charges, discounts, and such other
charges incident to the extension of credit as the Board may be regulation prescribe.
A: false

Which of the following is required to foster a healthy credit environment?

A: all of these

The following are considered advantages of credit, except

A: It doesn’t postpone financial outlay

Refers to short or intermediate term loans use to fund the acquisition of something
for personal use or consumption
A: consumer credit

MCLT refers to an organization’s money owned and controlled by its members who
can borrow at low interest rates from a fund that they saved as a group
A: sinking fund

Answer briefly. Refers to the creditor's assessment of the debtor's attitude

A: confidence

It is not a good idea to pay your balance in full each month because this will upset
the credit card company.
A: false

Credit card companies can charge you a late fee even if you are only a couple of days
late
A: true

When your credit line is reduced by an anticipated purchase this is known as

A: credit blocking

It is a loan by a bank to its own client/customer without the employ of a third party
like dealers and other middle handlers
A: direct credit

AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION

WITH EXTENSIONS OF CREDIT
A: R.A 3765 "Truth in Lending Act"

It is a cooperative financial institution that is owned and controlled by its members,

and operated for the purpose of promoting thrift, providing credit with reasonable
rates, and providing other financial services to its members
A: credit unions
One difference between a debit card and a credit card is that
A: payments made with a debit card are immediately deducted from your bank
account

Credit card companies don't like to give credit cards to people in their late teens and
early twenties.
A: false

The maximum amount of credit you are allowed to borrow.

A: Credit limit

Also known as annual percentage rate or APR. It is the percentage of your balance
you pay as interest.
A: Interest rate

Asset/s that can back or act as security for the loan. It gives the lender the
assurance that if the borrower defaults on the loan, the lender can get something
back by repossessing it
A: Collateral

Three digit number that predicts how likely you are to pay back the credit you borrow.
A: Credit score

Perks cardholders receive when they sign up for a credit card, like points, frequent
flyer miles, and cash back.
A: Member rewards

A yearly charge some credit card companies charge a holder simply for owning a
card.
A: Annual Fee

one of the bases of credit, which can be seen by the applicant's debt-to-income ratio
A: capacity

The lowest amount of money you are required to pay on your credit card each month.
A: Minimum payment due

this can refer to how a borrower intends to use the money, when and how much, or in
what way will he pay back
A: conditions
the amount of money/ resources owned by the potential borrower
A: capital

It is a financial report card

A: credit report

The amount of money you need to pay to reimburse the charges you put on your
card. It is what you owe
A: Balance due

Insurance companies can determine what rates you will pay for car insurance based
on your credit score.
A: true

Given a lost or stolen card your potential losses with a debit card are
A: greater than with a credit card

Refers to credit intended for financing usually high capital outlay projects usually
involves financial outlay intended for capital expenditure (CAPEX)
A: industrial credit

Credit cards can only be used to buy things. They cannot be used to obtain cash
A: false

The following are considered upside of consumer credit except?

A: protection of purchases

All credit cards

A: none of these

These are creditors who extend credit with high interest rates
A: loan sharks

If you have line of credit you are less likely to be tempted to make purchases that you
cannot afford
A: false

Which of the following statements is incorrect?

A: The guiding principle of the credit system in granting loan to applicants is credit
resources
This is one of the bases of credit, which refers to the potential debtor’s integrity as
reflected by the applicant's credit history
A: character

Having a low credit score is a good thing

A: false

These are creditors who extend credit with high interest rates
A: confidence

Your credit score can affect

A: all of these

A bank loses reserves whenever it pays out cash or transfers funds by wire for its
depositors
A: true

A central bank
A: is responsible for the conduct of a country's monetary policy

Banking/Depository institution create liquidity when they

A: borrow short and lend long

A bank makes money by

A: lending its excess reserves

These banks focus on accumulating and investing depositors’ savings, while also
providing short-term working capital, and medium- and long-term financing. The
main clients of these banks are businesses engaged in agriculture, services, industry
and housing, and diversified financial and allied services, in addition to other markets
and constituencies, especially individuals and small- and medium-size
enterprises.This bank category is made up of savings and mortgage banks, private
development banks, stock savings and loan associations.
A: thrift banks

BSP Reserve policy tools include all of the following EXCEPT

A: desired reserve ratios

The BSP
A: controls and manages our country's money supply
If required reserves are Php175,000.00 and deposits are Php10M, what is the
required reserve ratio?
A: 1.75 percent

Bank managers lend the excess reserves created when new deposits come in
because they want to
A: earn a profit

While doing everything that a commercial bank can do, these banks are also allowed
to perform underwriting and other functions of investment houses. They can also
invest in non-allied undertakings, as well as own up to 100% of the equity in a thrift
bank, a rural bank, a financial allied enterprise, or a non-financial allied enterprise.
A: universal banks

A type of banks that can handle your regular financial needs. They accept deposits,
allow withdrawals, offer checking account and loan services, and have products like
savings accounts and certificates of deposit. Both individuals and organizations are
the usual customers of such banks.
A: commercial banks

When bank deposits increase from P1 million to P2 million, banks' required reserves
increase from P100,000 to P200,000. The required reserve ratio is ________
A: 0.10

Popular in rural communities, these banks are tasked with providing basic financial
services to residents. These are meant to help promote and expand the local
economy in an orderly and effective manner. These banks can help farmers through
the stages of production, from buying seedlings until marketing of their produce.
A: rural banks

Debtor means any person engaged in the business of extending credit (including any
person who as a regular business practice make loans or sells or rents property or
services on a time, credit, or installment basis, either as principal or as agent) who
requires as an incident to the extension of credit, the payment of a finance charge.
A: false

RA 3765 is hereby declared to be the policy of the State 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.
A: true
Banks create monetary base money when they issue loans.
A: false

The minimum percentage of deposits that a depository institution must hold and
cannot use for lending is known as the
A: required reserve ratio

A bank is required to hold reserves at least equal to a prescribed fraction of its

demand deposit liabilities only.
A: true

What is not a characteristic of sight deposits?

A: relatively illiquid

Is the primary function of a bank for those who can save money but cannot utilize in
profitable sectors.
A: Accepting Deposit

Banks are profit-oriented business organizations.So they have to offer this service to
the public and generate interest from them as profit. After keeping certain cash
reserves, banks provide short-term, medium-term and long-term loans to needy
borrowers.
A: Loan Services

Banks provide cheque pads to the account holders. Account holders can draw
cheque upon the bank to pay money. Banks pay for cheques of customers after
formal verification and official procedures.
A: Check Payment

Also known as M-Banking is a term used for performing balance checks, account
transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA)
A: Mobile Banking

When customers have to deposit certain fund in governmental offices or courts for a
specific purpose, a bank can present itself as the guarantee for the customer, instead
of depositing fund by customers. When customers have to deposit certain fund in
governmental offices or courts for a specific purpose, a bank can present itself as
the guarantee for the customer, instead of depositing fund by customers.
A: Bank Guarantee
Personalized financial and banking services that are traditionally offered to a bank’s
digital, high net worth individuals (HNWIs). For wealth management purposes,
HNWIs have accrued far more wealth than the average person, and therefore have
the means to access a larger variety of conventional and alternative investments.
A: Private banking

They are the banks front lines and are often the face of the company to clients and
potential employees alike
A: bank staff

Banks deal with foreign currencies. As the requirement of customers, banks

exchange foreign currencies with local currencies, which is essential to settle down
the dues in the international trade.
A: Foreign Currency Exchange

Sometimes, the bank provides this facilities to its customers through which they are
allowed to withdraw more than their deposits. Interest is charged from the
customers on the overdrawn amount.
A: Overdraft

Through this method, a holder of a bill of exchange can get it discounted by the bank,
in a bill of exchange, the debtor accepts the bill drawn upon him by the creditor (i.e.,
holder of the bill) and agrees to pay the amount mentioned on maturity. After making
some marginal deductions (in the form of commission), the bank pays the value of
the bill to the holder. When it matures, the bank gets its payment from the party,
which had accepted the bill.
A: Discounting of Bills of Exchange

Coffey Bean shop sold the ff coffee beans ; ¼ kilo ; 1 ½ kilos, ¾ kilo, 2 kilos and 3 1/8
kilos of mint flavored variant coffee beans one afternoon. How many kilos does the
shop sold in that afternoon? Take note answers should be in lowest term fraction w/
complete label - ? kilos sold
A: 7 5/8 kilos sold

What does the fraction bar represent or translate to in a fraction?

A: divided by

Which fraction are equivalent?

A: 1/3=2/6
1/3=2/6
2/4= 3/5
2/3=4/5
1/4=4/5

XYZ Property Ventures acquire 5 1/2 hectares of lot for housing subdivision. They
plan to use 1/5 hectares for a park, how much will be left for the housing site?
A: 5 3/10 hectares left for housing site

Compare 1/4 and 1/7

A: 1/4 > 1/7

XYZ Property Ventures acquire 5 1/2 hectares of lot for housing subdivision. They
plan to use 1/5 hectares for a park. What will be the total area for housing site, if
XYZ will purchase the 3 1/3 hectare of the adjacent lot in which 1/8 of which is the
A: 8 61/120 hectares left for housing site

Convert 25/3 into a mixed number.

A: 8 ⅓

Convert 15/2 into a mixed number.

A: 7 ½

3/12 = ?/4
A: 1

3 cakes arrived as a birthday present for Arabella 1/2 of it was eaten by her friends
earlier. How many more persons can have cake if each is estimated to consume 1/4
cake.
A: 6 persons

All of the following are equivalent fractions except…

A: 4/6

This model represents 2/8. Which model represents a fraction equivalent to 2/8?
A: A

Coffey Bean shop sold the ff coffee beans ; ¼ kilo ; 1 ½ kilos, ¾ kilo, 2 kilos and 3 1/8
kilos of mint flavored variant coffee beans one afternoon. How much is left if the
shop have 25kilos upon opening that afternoon? Take note answers should be in
lowest term fraction w/ complete label - ? kilos left
A: 17 3/8 kilos left
Dan and David are on the track team. Dan runs 1/4 mile each day. David runs 3/4
mile each day. Which statement is correct?
A: David runs farther than Dan each day

How many kls of salt is needed for a pastry shop using 1/8 kl daily this whole month
of April 2021? note that they only use 1/2 of the daily requirement whenever it's a
holiday and a Sunday. Answer should be in lowest term fraction
A: 3 5/16kls

All of the following are equivalent fractions except.

A: 4/12

When using long division, what number goes inside your division box
A: top number

- 2.09 - 15.271
A: -17.361

7.948 + 18.7273 = ? rounded off to nearest tenths

A: 26.7

Use the UC transmutation to compute tentative average grade of Bela, given the
following scores for class standing; 7/10, 21/25, 12/15 and 75/110 for Prelim
exam.
Pls take note that Class Standing is 2/3 of the grade and major exam is 1/3. What is
Bella's prelim grade then?
A: 2.5

Choose the correct equivalent fraction for .23

A: 23/100

Of the 728 HD LED TV seven were returned because its defective. What is the
percentage of the defective? Round off to nearest hundredth.
A: 9.62%

You saved Php15,000 a month to raise money for a 20% down payment of your
dream house. How much is the price of the dream house if you saved for 3 years to
pay for it down payment? Complete answer with Php and in hundredth place
A: Php 2,700,000.00

Write the ratio as a fraction in simplest form.

24 players : 3 teams
A: 8/1

Convert 4/5 to a decimal

A: 0.80

Write the ratio as a fraction in simplest form 15 girls to 6 boys

A: 5/7

4.16 - 9.043
A: -4.883

What is 1/8 as a decimal?

A: 0.125

How many hours are there in 34.5 years?

A: 302,220 hrs

A pint is equivalent to 2cups

A: true

Baking cupcakes takes around 35mins. per batch. maximum of 20 cupcakes can fit
per batch. How many hrs will it take to bake 2doz of cupcakes? Answer should be in
hrs & mins
A: 1 hr and 10 mins

Convert 19 L into mL.

A: none of these / 19,000 ml

2 km. is how many miles? round off to nearest tenths

A: 1.2 miles

How many inches are there in 355 millimeters? round off to nearest tenths (25.4 mm
in an inch)
A: 14.0 inches

If you weight 116 lbs then how much do you weight in kilogram? (Round off nearest
tenths)
A: 50.5 kg

A 500meter dash is longer than half kilometer run

A: false
How many ounces is 1 cup?
A: 8 ounces

Before I started the USANA reset program I weigh 166 lbs. After the program my
current weight is 63.10kgs .How many pounds did I shed off? round off to nearest
tenths
A: 27.2 lbs

Which of the following is a FALSE metric conversion factor?

A: 1000g = 1mg

Before I started the USANA reset program I weigh 166lbs. After the program my
current weight is 63.10kgs .What is the percentage decrease of my weight (nearest
tenths)
A: 16.4%

How many weeks in 2yrs?

A: 104 weeks

How many cups in 1 liter (in nearest hundredths)

A: 4.22 cups

If your height is 5ft and 1 inch how tall are you in centimeters? (nearest tenths)
A: 154.9 cm

Which of the following is a TRUE metric conversion factor?

A: 1000mm = 1m

How many cups of water needed to make a 4pcs of 12-inch pizza crust if each crust
would need 1pint
A: 8 cups

Free on Board (FOB) is a shipment term used to indicate whether the seller or the
buyer is liable for goods that are damaged or destroyed during shipping.
A: true

Choose the better buy 1 litter milktea at 145 or 2 milktea at 160z. each @73 each?
A: buy the 1 liter Milktea

If Selling price is SP, cost price is CP, we get loss when

A: SP < CP
A phone was purchased for 4000 and sold for 4800. The profit percentage should be
A: 0.2

The price at which a particular item is purchased by a shopkeeper is known as

A: cost price

The list price for a coat is Php300.00. A series discount of 20/15/5 is being offered
for any orders worth above Php9,000.00 net. Find how many coats to buy to avail of
the series discounts
A: at least 47 coats

Which is more advantageous/economical to purchase, the 1 can 1kg Milo @ 350 per
can or the 4 doz. 24g/sachet @88/doz ?
A: The 4 doz. sachets

The term FOB shipping point is a contraction of the term "Free on Board Shipping
Point." The term means that the buyer takes delivery of goods being shipped to it by
a supplier once the goods leave the supplier's shipping dock. Since the buyer takes
ownership at the point of departure from the supplier's shipping dock, the supplier
will not record a sale at that point.
A: false

Marked price - sales price is equal to

A: profit/loss

Find the mark-up on retail for an article with a wholesale price of P20 that sells for
P35, find the answer to the nearest tenth.
A: 75.0%

select the correct Final Discount date for term 3/10, n/30. Please take note that the
seller doesn't count days with LEGAL HOLIDAY.
A: Invoice date:June 11, 2020 → June 22, 2020,
Invoice date: Jul. 21, 2021 → July 31, 2021,
Invoice date: Apr. 28, 2016 → May 9, 2016,
Invoice date: Dec. 18, 2020 → Dec. 29, 2020,
Invoice date: Feb. 28, 2021 → Mar 10, 2021,
Invoice date: Feb. 26, 2020 → Mar 7, 2020,
Invoice date: Feb. 27, 2016 → Mar 8, 2016

A trader sold a television for $1500. The price should he sell to get a profit of 20% is
A: 1,800
The mark price of a doll is 950 and 5% discount is offered on cash payment. The
amount to be paid should be
A: 903

If the sales price of an item is less than its cost price, then the difference is said to
be
A: loss

Sara and Ali earned a profit of P500, 000 from a business and their ratio of
investment was 5:8 respectively. The profit of each should be
A: P192,308 and P307,692

It is the term for documents which help businesses keep track of sales and various
types of discounts which help them buy products at lower costs to increase profits
A: invoices

It indicates that the title and responsibility of goods transfer from the seller to the
buyer when the goods are placed on a delivery vehicle/shipping point ... Therefore,
the seller is not responsible for the goods after it left in transit to the buyer.
A: F.O.B shipping point

You are to buy rubber shoes for your P.E class your mom gave you Php 2000 for 1500
for the shoes and the 500 for your meals/snacks & taxi transport i but the list price of
the Nike shoes you want so much is Php 3,950 it so happen that payday sale it is
marked down at 35% for credit card purchased and additional 25% discount for Cash
purchase. How much is the net CASH price of the said shoes ? Can you buy it?
A: Php 1,925.60 and it's possible to buy it

If the Cost Price is 850 and the profit is 10%, then the sales price should be
A: 935

(Profit ⁄Cost Price) × 100 is equal to

A: profit percentage

A deduction that is offered on the mark price or the list price of items by the seller to
the purchaser is called
A: discount

The selling price of 15 books is equal to the cost price of 12 books. The profit
percentage should be
A: 25%
During sale, a shop offers a discount of 8% on marked price. If the marked price is
$5500, then the purchase price of an oven should be
A: 5060

If the Sales Price is 672 and the profit is 5%, then the cost price should be
A: 640

When converting to mark-up on Cost from Mark-up on Selling Price. The answer is
always lower than the given mark-up on Selling Price
A: true

A face shield Priced at 1800 mark-down at 50% will have an absolute loss of 10 if the
a face shield is bought@90 and with OPEX charge @10each.
A: false

Absolute loss must be avoided by the business as much as possible.

A: true

Is the point in which the reduced price just covers cost plus the overheads or
operating expenses(OPEX)
A: break-even point

A succulent costs 3 for 100 and the desired mark-up is 60% on cost, how much
would be the Price for 2 dozens of succulents? round off to nearest hundreds
A: P 1,300.00

Is the result of a reduced price that is below the cost of the merchandise alone
A: absolute loss

When converting to mark-up on Selling Price from mark-up on Cost, the answer is
always higher than the given mark-up on cost.
A: false

A snake plant cost P 103.60 and being sold at 35% mark-up on cost. What would be
the selling price round off to nearest tens
A: Php 140.00

How much would be the Price for a lobster dish, if its cost is Php 450 and the gross
profit target is 75% base on Price?
A: Php 1,800
When converting to mark-up on Cost from Mark-up on Selling Price. The answer is
always higher than the given mark-up on Selling Price
A: false

The incurrence of absolute loss is possible in business especially if the items are
very old model and occupies a lot of space in the warehouse
A: true

An old model Merchandise initial Cost is P 7,000 it is being mark up at 30% on Selling
Price. The said merchandise is now mark down at 40% off the Price. How much is
the mark down?
A: P 4,000

Convert the mark-up on cost of 37.50% to equivalent Mark-up on Selling Price.

Answer should be in tenths & in percentage
A: 27.3%

When converting to mark-up on Selling Price from Mark-up on Cost. The answer is
always lower than the given mark-up on Cost
A: true

It occurs when the reduced priced is less than the break-even point. It is the
difference between the Break-Even Point (BEP) and the Reduced Selling Price.
A: operating loss

Convert 45% mark-up on selling price to percent on cost. Round off to tenths place in
percentage
A: 81.8%

Violets R BLU flower shop purchased 12 dozens of long stemmed roses for
Php9,450. If the 25% of the roses cannot be sold and the company imposed a mark
– up of 100% on cost, find the regular selling price per dozen of Roses.
A: Php 2,100

It is used to stimulate sales volume especially when the merchandise does not sell at
its marked price. The difference between the Original Price less the Reduced Price
the term is called?
A: markdown

Selling in business means selling products at a price which is cost plus mark up
A: true
An old model Merchandise initial Cost is P 7,000 it is being mark up at 30% on Selling
Price. The said merchandise is now mark down at 40% off the Price. The Reduced
Price is? (answer in figure only no decimal & no Peso sign)
A: 6,000

SP = Cost + Mark down

A: false

Chloe's Bakeshop bakes 50 doz of gingerbread cookie, production of which would

cost P3.85 each. 10% of the production will be unsold as allowance for imperfect
shapes and thus, be given to charity. Find the selling price per dozen (round UP to
nearest tens) if the mark-up is 50% on selling price.
A: 110

Toby's Sports purchases mountain bikes at a cost of P38,000 each. If the co.'s OPEX
is 20% of cost and a net PROFIT of 25% of Total Cost is desired. Find the Selling
Price of each bike
A: Php 57,000

Mr. Garcia borrowed P1,000,000 for the expansion of his business. The rate of
interest is 7%. The loan is to be repaid in full after one year. How much is to be paid
after one year?
A: none of these

When you consolidate your credit card debt, you are taking out a new loan. You have
to repay the new loan just like any other loan. If you get a loan consolidation and
keep making more purchases with credit, it's more likely that you won’t succeed in
paying down your debt.
A: True

A couple wants to buy a house worth Php 1,270,00. They have saved 100k for the
equity downpayment and they can get a 7 1/2% , 30-yr mortgage. How much is their
monthly loan amortization? (answer in pure figures no peso sign or comma & round
off to nearest tens)
A: 8890

Right after marriage you decided to get a housing loan w/ term of 30yrs. The house
is worth 1M but you need to pay the 5% for the equity. How much will be the loan
amount and the monthly loan payment? (you can refer to the book table factor on
real estate loan)
A: 950,000 loan w/ 7305.50 monthly payment
Solve for the monthly amortization payment for a CONDO loan with a list price of Php
1.2M , the required equity is 6% of the Price. BDO offers to finance the remaining
balance for 8.5% interest rate. (answer should be in figure only NO peso sign and in
nearest tenths)
A: 11,110.80

Is a loan specifically for business purposes

A: business loan

An amount of money lent to an individual (usually on a non-secured basis) for

personal, family, or household purposes.
A: consumer loan

A debit card is a thin rectangular piece of plastic or metal issued by a bank or

financial services company, that allows cardholders to borrow funds with which to
pay for goods and services with merchants that accept cards for payment.
A: false

Open-end credit is a pre-approved loan between a financial institution and borrower

that may be used repeatedly up to a certain limit and can subsequently be paid back
prior to payments coming due.
A: true

Open-end loans, like credit cards, are the same as closed-end loans, like auto loans,
in terms of how the funds are distributed and whether a consumer that has started
to pay down the balance can withdraw the funds again.
A: false

(Chattel mortgage). A person borrowed P1,200,000 for the purchase of a car. If his
monthly payment is P31,000 on a 5-year mortgage, find the total amount of interest.
(answer should be in whole # figure no peso sign no comma)
A: 660000

A couple wants to buy a house worth Php 1,270,00. They have saved 100k for the
equity downpayment and they can get a 7 1/2% , 30-yr mortgage. Based on their
proof of income they will only qualify for a loan as long as the monthly amortization
does not exceed P12K. Are they qualified for the loan? (ans yes or no only)
A: yes