COOP Question 1 Which of the following does not necessarily characterize a cooperative? A. Autonomy B. Common bond of interest C. Voluntary involvement D. Absence of capital Answer: D. Question 2 A cooperative whose members are natural persons is called A. Primary B. Natural C. Parent D. De jure Answer: A. Question 3 Which of the following is not a qualification for membership to a primary cooperative? A. Natural born resident citizen citizen B. Of legal age C. Common bond of interest D. Actually residing or working in the intended area of operation Answer: A. The law only requires citizenship. Question 4 A single-purpose cooperative may transform into a multi-purpose cooperative only after at least how many years of operations? A. 2 B. 3 C. 4 D. 5 Answer: A. Question 5 Multi-purpose cooperatives must have a minimum paid-up capital of A. P15,000 B. P50,000 C. P100,000 D. P250,000
Answer: C. With the exception of agricultural and agrarian reform cooperatives, only those cooperatives with a minimum paid-up capital of P100,000 may be allowed to transform into a multi-purpose cooperative. Question 6 Duly registered cooperatives shall have w hat extent of liability? A. Unlimited B. Limited C. None at all D. To the extent fixed by its by-laws Answer: B. Question 7 Cooperatives have maximum legal life of 50 years. This period may be extended for periods not exceeding 50 years in any single instance by an amendment of the articles of cooperation. However, no extension can can be made earlier earlier than ______ prior to the original or subsequent expiry date unless there are justifiable reasons for an earlier extension. A. 3 years B. 5 years C. 7 years D. 10 years Answer: B. Question 8 The preferred share capital of a cooperative shall not exceed what percent of its total authorized share capital? A. 5% B. 10% C. 20% D. 25% Answer: D. Question 9 No member shall own more than what percent of the subscribed share capital of a cooperative? A. 5% B. 10% C. 15% D. 20% Answer: B. Question 10 When does a cooperative acquire juridical personality?
A. From the formation of all its members B. From the transfer of funds to the cooperatives C. From the issuance of certificate of registration by the CDA D. From the assumption of offices by its directors Answer: C. In addition, the certificate is conclusive evidence that the cooperative therein mentioned is duly registered, unless it is proved that the registration has been cancelled. Question 11 Which type of cooperative has the primary purpose of procuring and distributing commodities to its members and non-members? A. Credit B. Consumers C. Service D. Producers Answer: B. Question 12 This type of cooperative undertakes joint production whether agricultural or industrial. A. Producers B. Multi-purpose C. Consumers D. Marketing Answer: A. It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished finished or processed products for sale by the cooperative cooperative to its members and non-members. Question 13 This type of cooperative is organized for the primary purpose of engaging in savings and credit services and other financial services. A. Cooperative bank B. Financial service cooperative C. Lending cooperative D. Commercial cooperative Answer: B. Question 14 A laboratory cooperative is one organized by A. Scientists B. People of scientific background C. Minors D. Researchers Answer: C.
Question 15 What type of cooperative member has no right to vote or be voted upon and shall only be entitled to any such rights and privileges as the bylaws may provide? A. Regular member B. Associate member C. Loyal member D. Disloyal member Answer: B. Question 16 It is the highest policy-making body of the cooperative. A. Board of Directors B. Board of Trustees C. General Assembly D. Cooperative Governance Answer: C.
INSOLVENCY AND CORPORATE REHABILITATION
Question 1 It shall refer to the financial condition of a debtor that is generally unable to pay its or his liabilities as they fall due in the ordinary course of business or has liabilities that are greater than its or his assets. A. Bankrupt B. Insolvent C. Indebted D. Dissolved Answer: B. Question 2 Voluntary proceeding differs from involuntary proceeding in that it is initiated by the A. Court B. Insolvent debtor C. Creditors D. Receiver Answer: B. Question 3 Involuntary proceedings are initiated by the A. Court B. Insolvent debtor C. Creditors D. Receiver Answer: C. Question 4 An insolvent debtor may initiate involuntary proceeding by filing a petition for rehabilitation with the court only if with the prior approval of the following (choose the incorrect one): A. the owner in the case of a sole sole proprietorship B. the majority of the partners in the case of a partnership C. the vote of at least 2/3 of the th e members of a nonstock corporation, in a member’s meeting called for the purpose D. the the majority of the vote of the board of directors or trustees and authorized by the vote of the stockholders representing at least majority of the outstanding capital stock, in a meeting called for the purpose Answer: D. For the stockholders, the required vote is at least 2/3 of the outstanding capital stock. Question 5 Which of the following creditor or group of creditors may initiate involuntary
proceeding against the debtor by filing a petition for rehabilitation with the court? A. A creditor with a claim claim of P500,000 B. Group of creditors with aggregate claim of P750,000 C. A creditor with a claim of P800,000 D. Group of creditors with aggregate claim of P1,000,000 Answer: D. Any D. Any creditor or group of creditors with with a claim of, or the aggregate of whose claims is, at least P1,000,000. or at least twenty -five percent (25%) of the subscribed capital stock or partners’ contributions, whichever is higher, may initiate involuntary involuntary proceedings against the debtor by filing a petition for rehabilitation with the court. Question 6 An individual debtor who, possessing sufficient property to cover all his debts but foreseeing the impossibility of meeting them when they respectively fall due, may file a verified petition that he be declared in the state of __________________ by the court of the province or city in which he has resides for six (6) months prior to the filing of his petition. A. bankruptcy B. suspension of payments C. insolvency D. liquidation Answer: B. Question 7 In a petition for declaration for the state of suspension of payments, which of the following is not required as a minimum attachment? A. A schedule of assets and liabilities B. An inventory of assets C. A proposed agreement with creditors D. A list of all loans in the last 5 years Answer: D. Question 8 It refers to the restoration of the debtor to a condition of successful operation and solvency. A. Reorganization B. Rehabilitation C. Reconditioning D. Liquidation Answer: B. Question 9 Which of the following is least likely included as a rehabilitation plan? A. Debt-equity conversion B. Quasi-reorganization
C. Liquidation D. Dacion en pago Answer: C. Liquidation is the process of realizing the assets of the company, distributing the proceeds to rightful claimants and bringing an end to the business, a process opposite to rehabilitation. Question 10 Which of the following is not an effect of a stay order or suspension order? A. It suspends all actions actions or proceedings, in court or otherwise, for the enforcement of claims against the debtor. B. It suspends all actions to enforce any j udgment, attachment or other provisional remedies against the debtor. C. It prohibits the debtor from selling, encumbering, transferring or disposing in any manner any of its properties even if it is in the ordinary course of business. D. It prohibits the debtor from f rom making any payment of its liabilities outstanding as of the commencement date except as may be provided in the Act. Answer: C. C. A stay order or suspension suspension order prohibits the debtor from selling, encumbering, transferring or disposing in any manner any of its properties except in the ordinary course of business.
PDIC Question 1 Which of the following is not a function of the PDIC? A. Deposit insurer B. Co-regulator of banks C. Receiver and liquidator of closed banks D. Engage in the lending of funds obtained from the public Answer: D. This is a function of banks or banking institutions.
Question 2 What is the amount of insured deposit? A. Minimum of P500,000, gross gross B. Maximum of P500,000, gross C. Maximum of P500,000, net D. Minimum of P500,000 net Answer: C. The insured deposit is net of any obligation of the depositor to the insured bank as of the date of closure, but not to exceed P500,000. Question 3 Joint accounts shall be insured separately fr om any individually-owned deposit True/False. Joint True/False. account. Answer: True. Case 1 (for questions 4 to 8) Juan dela Cruz has the following deposits in Bank 1: – Individual – Individual account in his name: P600,000 savings deposit – Joint – Joint account in his name AND Maria dela Cruz: P500,000 time deposit – Joint – Joint account in his name OR Pedro dela Cruz: P800,000 demand deposit Assume that for the joint accounts, accounts, there is equal sharing. sharing. (Source: PDIC) Question 4 What is the total insured deposit of Juan dela Cruz? A. P500,000 B. P750,000 C. P1,000,000 D. P1,250,000 Answer: C. For the single/individual account = P500,000; for the AND joint account = P250,000 (P500,000 maximum/2); for the OR joint account = P250,000 (P500,000 maximum/2)
Question 5 What is the total uninsured deposit of Juan dela Cruz? A. P100,000 B. P250,000 C. P500,000 D. P600,000 Answer: B. For the single account = excess of P100,000; for the AND joint account = no excess; for the OR joint account = excess of P150,000 (P300,000/2) Question 6 What is the total insured deposit of Maria dela Cruz? A. Zero B. P250,000 C. P500,000 D. None of the choices Answer: B. P500,000/2 Question 7 What is the total insured deposit of Pedro dela Cruz? A. Zero B. P250,000 C. P400,000 D. P500,000 Answer: B. Maximum P500,000/2 Question 8 What is the total uninsured deposit of Pedro dela Cruz? A. Zero B. P100,000 C. P150,000 D. P250,000 Answer: C. Excess of P300,000/2 Case 2 (questions 9 to 10) In addition to the accounts in Case 1, assume that, the following joint account is also maintained by Juan dela Cruz in the same bank: – Joint – Joint account in his name or Maria dela Cruz or Pedro dela Cruz = P450,000 (equal sharing) Question 9 What is the total of insured deposit of Juan dela Cruz? A. P500,000 B. P1,000,000
C. P1,150,000 D. None of the choices Answer: B. The joint accounts will be insured separately fr om the individual account. However, the share of Juan dela Cruz in the joint j oint accounts shall not exceed P500,000 total (which has been reached already in Case 1 Question 4). This means that the additional P150,000 share (P450,000/3) will become uninsured deposit. Question 10 What is the total of insured deposit of Pedro dela Cruz? A. P250,000 B. P400,000 C. P500,000 D. P600,000 Answer: D. Share in joint OR account = P250,000 (maximum of P500,000/2); share in 3way joint OR account = P150,000 (P450,000/3) ( P450,000/3) Question 11 The portion of the deposit not insured shall A. Be forfeited in favor of the the bank B. Be forfeited in favor of the Government C. Become a claim against the asset of the closed bank D. Be written off immediately by the depositor Answer: C Question 12 Deposits in which of the following banks are insured by the PDIC? I. Commercial banks II. Savings and mortgage banks III. Private development banks IV. Cooperative banks V. Savings and loan associations A. All except IV B. All except V C. All except IV and V D. All banks enumerated above Answer: D. Question 13 True/False. Foreign True/False. Foreign currency deposits are also insured by the PDIC. Answer: True. This is pursuant to RA No. 6426 and Central Bank Circular No. 1389. Question 14 The PDIC will not pay deposit insurance on the following accounts or transactions.
Which is the exception? A. Investments in bonds bonds B. Deposit products emanating from unsafe and unsound banking practices C. Deposits from unlawful proceeds D. Deposits in foreign currency Answer: D. Question 15 True/False. Deposits True/False. Deposits in different banks are added together for the purpose of the P500,000 maximum. Deposits in different branches of the same bank are insured separately. True/False. Deposits True/False. A. False, True B. True, False C. False, False D. True, True Answer: C. Deposits in different banks are separately insured. Deposits in different branches of the same bank are considered as deposits in one bank. Question 16 To file for claims on the insured deposits, which of the following is/are not required? A. Original evidence of deposits deposits such as savings passbook passbook B. Claim form C. For all depositors, photocopy of birth certificate and valid ID of the parent D. 1 valid original photo-bearing ID with clear signature of depositor Answer: C. This is only required for depositors below 18 years old. Question 17 Depositors with valid deposit accounts with balances of ___________________ are not required to file claims, provided they meet other qualifications, as required. A. P100,000 and below B. P150,000 and below C. P200,000 and below D. P250,000 and below Answer: A. Question 18 A joint demand deposit account in the name of Juan dela Cruz and ABC Corporation in the amount of P500,000 was held in Bank 1. What is the insured deposit of Juan dela Cruz? A. Zero B. P250,000 C. P500,000 D. P100,000
Answer: A. The deposit is presumed to belong entirely to ABC Corporation, the juridical person or entity in the joint account. Source.
GENERAL BANKING LAW
Question 1 Which of the following does not characterize a bank or banking institution? A. Authorized to engage in lending of funds B. Funds for lending are obtained mainly from private institutions C. Funds are from receipt of deposits or sale of bonds D. It conducts banking activities on a regular basis Answer: B. The funds used by the bank from lending are mainly from the public through the receipt of deposits or the sale of bonds, securities, or obligations of any kind. Question 2 Which of the following is excluded from the term “banking institution”? A. Building and loan association association B. Money changer C. Trust company D. Savings bank Answer: B. Bank or banking institutions include commercial, savings and mortgage banks, trust companies, savings and loan associations, Philippine branches and agencies of foreign banks and all other corporations, companies, partnerships and associations performing banking functions in the Philippines. Question 3 True/False. Insurance True/False. Insurance companies are included in the provisions of Republic Act No. 337 or the General Banking Law. Answer: False. Insurance companies are exempted from the provisions of RA No. 337. Question 4 Which of the following security cannot be issued by banks? A. Preferred stock B. Common stock C. Bonded instrument D. No par value stock Answer: D. No banking institution shall issue no par value stock. Question 5 At least what percent of the capital stock of any banking institution shall be owned by citizens of the Philippines? A. 50% B. 60% C. 75% D. 90% Answer: B.
Question 6 What type of banking institution is one which accepts or creates demand deposits subject to withdrawal by check? A. Trust company B. Mortgage bank C. Commercial bank D. Building and loan association Answer: C. Question 7 Which of the following is not a purpose of a building and loan association? A. to accumulate the savings savings of its stockholders B. to repay to stockholders their accumulated savings and profits upon surrender of their shares C. to loan its funds to stockholders of the security of unencumbered real estate D. to act as trustee or administer any trust or hold property in trust or on deposit for the benefit of others Answer: D. What is described here is the purpose of a trust corporation. Question 8 True/False. Commercial True/False. Commercial banking institutions cannot engage in the business of a trust company. Answer: False. A False. A commercial banking corporation corporation may, with the approval of the Monetary Board, be authorized to engage in the business of a trust company, com pany, but shall be subject to the provisions related to the trust corporations as regards its trust business. Question 9 What does the D in DOSRI represent? A. Dividends B. Directors C. Discounts D. Depreciation Answer: D. DOSRI stands dealings with Directors, Officers, Stockholders and their Related Interests. Question 10 DOSRI should be in the regular course of business and the dealings should be upon which terms? A. Not more favorable to the bank than those offered to others B. Not less favorable to the bank than those offered to others C. Exactly similar to those offered to others D. Double those offered to others
Answer: B. The dealings should be upon terms not less favorable to the bank than those offered to others. Question 11 A substantial stockholder shall mean a person, or group of persons whether natural or juridical, owning such number of shares that w ill allow such person or group to elect at least _______________ of the board of directors of a bank or who is directly or indirectly the registered or beneficial owner of more than _______________ of any class of its equity security. A. 1 member; 20% B. 2 members; 10% C. 1 member; 10% D. 2 members; 20% Answer: C. Question 12 What does SBL stand for? A. Standard By Laws B. Secured Banking Legislation C. Single Borrower’s Limit D. See Bottom Line Answer: C. Question 13 Per Bangko Sentral ng Pilipinas Circular No. 425, series of 2004, consistent with national interest, the total amount of loans, credit accommodations and guarantees that may be extended by a bank to any person, partnership, association, corporation or other entity shall at no time exceed ______ of the net worth of such bank. A. 10% B. 20% C. 25% D. 40% Answer: C. Question 14 With certain requirements, SBL can be increased by what percent? A. 5% B. 10% C. 15% D. 20% Answer: B. It can be increased by an additional 10%; Provided, That the additional liabilities are adequately secured by trust receipts, shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, nonperishable goods which must be fully covered by insurance.
ANTI BOUNCING CHECK
Question 1 Which of the following is not one of the elements of violation of BP Blg. 22? A. the making, drawing, and issuance issuance of any check to apply for account or for value B. the knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds in or credit with the dra wee bank for the payment of the check in full upon its presentment C. the subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment D. the subsequent payment by the drawer to the holder of the check after it was dishonored by the drawee bank upon presentment Answer: D. Question 2 A bounced or worthless check is also known as a A. Post-dated check B. Crossed check C. Bum check D. Special check Answer: C. Question 3 Which of the are checks without sufficient fund, as contemplated by BP Blg. 22. I. A check dishonored by the bank upon presentment, due to insufficiency of funds, and the issuer has knowledge of insufficiency at the time of issue II. A check which would have been bee n dishonored for insufficiency, were it not f or the drawer’s unjustifiable order to his bank to stop the payment of the check III. A check dishonored for insufficiency when presented for payment within 90 days from issue, even if there was sufficient fund at the time of issue A. I and II only B. I and III only C. II and III only D. I, II and III Answer: D. Question 4 A issued check in favor of B. A knew at the time of issue that the check has no sufficient fund in the drawee bank. Upon presentment by B, the bank dishonored the check for insufficiency. B filed charges against A for violation of BP Blg. 22. A, however, subsequently issued another check to B in payment of the amount covered by the original check. Can A still be charged with violation of BP Blg. 22? A. No, because the subsequent subsequent check cleared the offense B. No, because there is no more unpaid debt
C. No, because no person shall be imprisoned for debt D. Yes, because what is punished is the act of issuing a worthless check Answer: D. The law has made the mere act of issuing a bum check a malum prohibitum, prohibitum, an act proscribed by legislature for being deemed pernicious and inimical to public welfare. The gravamen of the offense under this law is the act of issuing a worthless check or a check that is dishonored upon its presentment for payment. Thus, even if there had been payment, through compensation or some other means, there could still be prosecution for violation of B.P. 22. (Tan vs. Mendez, GR No. 138669, June 6, 2002). Question 5 As used in BP Blg. 22, it shall mean an arrangement or understanding with the bank for the payment of check. A. Debit B. Credit C. Deposit D. Withdrawal Answer: B. Question 6 When a worthless check is issued by a corporate entity, who shall be liable? A. the shareholders B. the corporate corporate officers signing signing the check C. the Board of Directors D. no one Answer: B. Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in b ehalf of such drawer (i.e. the corporation, company or entity) shall be liable. This means that the officers signing the check for the corporation will be the ones liable. Question 7 Persons guilty of issuing checks without sufficient funds face which two of the following sanctions? A. Imprisonment of not less less than 30 days but not more than 1 year B. Imprisonment of not less than 60 days but not more than 2 years C. Fine equal to the amount of the check D. Fine of not less than but not more than double the amount of the check Answer: A and D. The punishment shall be either imprisonment of not less than 30 days but not more than 1 year, or fine of not less than but not more than double the amount of the check. Question 8 The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within ninety (90) days from the date of the check, shall be
A. prima facie evidence of knowledge of such insufficiency of funds or credit A. prima B. conclusive evidence of knowledge of such insufficiency of funds or credit C. indisputable evidence of knowledge of such insufficiency of funds or credit D. proof beyond reasonable doubt of knowledge of such insufficiency of funds or credit Answer: A. However, this presumption does not apply when the maker or drawer pays the holder of the check the amount due, or makes arrangement for payment in full by the drawee of such check within 5 banking days after receiving notice that such check has not been paid by the drawee. Question 9 When a check presented has bounced, it is the drawee bank’s duty to A. initiate the filing of charges charges against the drawer for violation of BP Blg. 22 B. advise the payee of the check to file charges against the drawer for violation of BP Blg. 22 C. cause to be written, printed, or stamped on the check, in plain language, or attached thereto, the reason for its dishonor or refusal to pay D. All of the above Answer: C. Moreover, where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal. ref usal.
ANTI MONEY LAUNDERING
Question 1 As to the character of the offense, “Money Laundering” is A. Civil B. Criminal C. Political D. Natural Answer: B. Money laundering is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. Question 2 What is the threshold figure for a “covered transaction”? A. at least P500,000 B. more than P500,000 C. at least P4,000,000 D. more than P4,000,000 Answer: B. A B. A covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount of more than P500,000 within 1 banking day. da y. (Note: the more than P4,000,000 threshold was before the amendments made under RA No. 9194). Question 3 True/False. The “more than P500,000” threshold applies to “suspicious transactions”. Answer: False. Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where an y of the circumstances enumerated in the law exist. Question 4
S us pi pici ci ous trans action actionss are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exist (choose the exception): A. there is no underlying legal or trade obligation, purpose or economic justification B. the client is not properly identified C. the amount involved is commensurate with the business or financial capacity of the client D. the transactions is in a way related to an unlawful activity or offense under the Act that is about to be, is being or has been committed Answer: C. The phrase should read as: “not commensurate”. Question 5 Suspicious transactions shall be reported by covered persons. Which of the following is least likely considered as a covered person? A. Bank or banking institution institution B. Insurance company
C. Jewelry dealer in precious metal D. Lawyer acting as independent legal counsel Answer: D. Covered persons shall not include lawyers a nd accountants acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidences or the attorney-client relationship. Question 6 To which specific body shall covered persons report the occurrence of suspicious transactions? A. COA – COA – Commission Commission on Audit B. BSP – BSP – Bangko Bangko Sentral Ng Pilipinas C. AMLC – AMLC – Anti-Money Anti-Money Laundering Council D. PDIC – PDIC – Philippine Philippine Deposit Insurance Commission Answer: C. Covered persons shall report to the AMLC all covered transactions and suspicious transactions. Question 7 Within how many days shall covered persons report to the AMLC the occurrence of suspicious transactions? A. 1 working day B. 3 working days C. 5 working days D. 7 working days Answer: C. Covered persons shall report to the AMLC all covered transactions and suspicious transactions within 5 working days from occurrence thereof, unless the AMLC prescribes a different period not exceeding e xceeding 15 working days. For all of the new topic in Regulatory Framework for Business Transactions, click here. For a list of all quizzes, check this page.
NEW CENTRAL BANK ACT Question 1 It means that, when a currency is offered in payment of a debt, public or private, the same must be accepted. A. Purchasing power B. Negotiability of instrument C. Legal tender power D. Liquidity of money Answer: C. Question 2 Which of the following does not constitute legal tender? A. 1,000 pieces of P20-bill B. 100 pieces of P20-bill and 100 pieces of P10-coin C. 300 pieces of P5-coin D. Centavo coins worth P100 Answer: C. Philippine currency notes (bills) have no limit to their legal tender power. For coins, centavos are acceptable up to P100, while other coins (P1, P5, P10) are acceptable up to P1,000. Question 3 Which of the following has legal tender power? I. Checks representing demand deposit II. Negotiable promissory note A. I only B. II only C. Both I and II D. Neither I nor II Answer: D. Checks representing demand deposits do not have legal tender power and their acceptance in the payment of debts, both public and private, is at the option of the creditor: Provided, however, That a check which has been cleared and credited to the account of the creditor shall be equivalent to a delivery to the creditor of cash in an amount equal to the amount credited to his account. Negotiable instruments do not have legal tender power. Question 4 Which government institution has the sole authority to issue notes and coins for circulation in the Philippines? A. Bureau of Treasury B. Bureau of Internal Revenue C. Bangko Sentral Ng Pilipinas D. Landbank of the Philippines Answer: C.
Question 5 It is an attempt to save the bank from bankruptcy and eventual liquidation. A. Liquidation B. Conservatorship C. Receivership D. Dissolution Answer: B. Broadly defined, conservatorship is an attempt to save the bank from bankruptcy and eventual liquidation. Doing so entails appointment of a conservator who will take steps such as management reforms and infusion of additional capital. Question 6 Who appoints the conservator? A. Monetary Board B. Commission on Audit C. Depositor D. Court Answer: A. Question 7 Which of the following is not one of the functions of the conservator? A. Take charge of the assets, assets, liabilities and management management of a bank or quasi-bank B. Reorganize the management C. Collect all monies and debts due to the bank D. Administer the bank’s assets bank’s assets and liabilities for the benefit of its creditors Answer: D. Administering D. Administering the bank’s assets and liabilities for the benefit of creditors is a function of a receiver, not conservator. Question 8 The conservatorship shall be for a period A. Of at least 1 year year B. Of at least 2 years C. Not to exceed 1 year D. Not to exceed 2 years Answer: C. The conservatorship shall not exceed 1 year. Question 9 It is the summary closure of the bank by the Bangko Sentral ng Pilipinas without the need of prior notice and hearing. A. Conservatorship B. Receivership C. Liquidation D. Rehabilitation Answer: B.
Question 10 The bank or banking institution is placed under receivership upon finding of the Monetary Board of the following (choose the exception): A. Inability to pay liabilities B. Insufficiency of realizable assets to meet its liabilities C. Inability to continue business without involving probable loss to depositors and creditors D. Inability to declare dividends Answer: D. Question 11 Who among the following has the task of paying the claims of creditors and other liabilities of the bank? A. Conservator B. Receiver C. Liquidator D. President Answer: C. Question 12 Receivership shall not exceed A. 30 days B. 90 days C. 120 days D. 60 days Answer: B. Question 13 Which of the following is not a function of a receiver? A. Gather and take charge of all the assets assets and liabilities of the bank B. Administer the assets and liabilities for the benefit of its creditors C. Exercise the general powers of a receiver under the Revised Rules of Court D. Pay or commit any act that will involve the transfer or disposition of any asset of the bank Answer: D. With the exception of administrative adm inistrative expenditures, the receiver shall not pay or commit any act that will involve the transfer or disposition of any asset of the institution. However, the receiver may deposit or place the funds of the institution in nonspeculative investments.
SECRECY OF BANK DEPOSTIS
Question 1 Which of the following are covered by the bank secrecy law? A. Only demand deposits B. All deposits of whatever nature C. Investments in bonds issued by the Philippine Government D. B and D Answer: D. The law states that all deposits of whatever nature with banks or banking institutions in the Philippines including investments in bonds issued b y the Government of the Philippines, its political subdivisions and its instrumentalities are considered absolutely confidential. Question 2 True/False. Foreign True/False. Foreign currency deposits are excluded fr om the protection of bank secrecy laws. Answer: False. Republic Act No. 6426, known as the “Foreign Currency Deposit Act of the Philippines”, Sec. 8 states that all foreign currency de posits are also considered of an absolutely confidential nature. Question 3 In all of the following fo llowing cases, the deposits may be examined, inquired or looked into by any person, government official, bureau or of fice. Choose the exception. A. When permitted (written) by the depositor B. In cases of impeachment C. When the depositor is a public official D. In cases where the money deposited or invested is the subject matter of litigation Answer: C. Being a public official does not automatically waive the right to bank secrecy. The deposit may only be examined, inquired or looked into upon order of competent court in cases of bribery or dereliction of duty of public officials. Question 4 Can independent external auditors inquire into or examine bank deposits during the course of the audit? A. Yes, anytime. B. Yes, in the regular audit of the bank, with conditions C. No, because of the absolute nature of secrecy D. No, unless the auditor has reason to believe that bank fraud exists Answer: B. Presidential Decree No. 1792, amending Re public Act No. 1405 states that, during a regular audi t of a bank by an independent auditor, the auditor may inquire, examine or look into deposits, provided that the following conditions are satisfied: a) the examination is for audit purposes only, and b) the results of the examination shall be for the exclusive use of the bank.
Question 5 Violations of the bank secrecy law subjects the offender, upon conviction, to which of the following? A. Imprisonment of not more than 2 years or fine of not more than P20,000 or both B. Imprisonment of not more than 5 years or fine of not more than P20,000 or both C. Imprisonment of not more than 2 years or fine of not more than P40,000 or both D. Imprisonment of not more than 5 years or fine of not more than P40,000 or both Answer: B.
