1.

The government agency granted with the power of supervision and

examination over banks and non-bank financial institutions
performing quasi-banking functions, to ensure that the conduct of
its business is on a sound financial basis that will provide
continued solvency and liquidity is -
a. The Philippine Deposit Insurance Corporation;
b. The Bangko Sentral ng Pilipinas;
c. The Anti-Money Laundering Council;
d. The Securities and Exchange Commission.

2. X maintains a savings deposit in the amount of Php·1 Million with

ABC Bank Corporation. X also has obtained a loan from ABC Bank
Corporation in the amount of Php1 Million. In case of default,
a. ABC Bank can set-off the loan from the savings account
being maintained by X with ABC Bank.
b. Set-off is not possible because legal compensation is not
allowed in banking transaction.
c. Deposit accounts are usually earmarked for specific purpose
hence offsetting is not legally possible.
d. Off -setting is not possible because the obligation of X is
a "simple loan".

3. XYZ Corporation is engaged in lending funds to small vendors in

various public markets. To fund the lending, XYZ Corporation
raised funds through borrowings from friends and investors. Which
statement is most accurate?
a. XYZ Corporation is a bank.
b. XYZ Corporation is a quasi-bank.
c. XYZ Corporation is an Investment Company.
d. XYZ is none of the above.

4. XXX Bank Corporation and ZZZ Corporation were merged into XX ZZ

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 eleven (11) members of the board. The
maximum number of directors of the merged bank is
a. 15;
b. 22;
c. 21;
d. 11.

5. All senior officers of ABC Bank are entitled to obtain a housing

loan. X is an Executive Vice President for Operations of ABC
Bank. She obtained a housing loan with the ABC Bank. Which
statement is most accurate?
a. The housing loan of X requires a guarantor from somebody
who is not connected with the bank.
b. The housing loan of X requires the approval of the Board of
Directors of the bank.
c. The housing loan of X, being a benefit for employees, does
not require (a) but will require (b).
d. The housing loan of X, being a benefit for employees, will
not require (a) and (b).