1. A bank is solvent as long as it A. has enough capital to pay off depositors B. has mostly good loans C. does not experience a run on its deposits D. is able to meet all demands by depositors for payment

2. If Firm A's business is to obtain savings from individuals and then invest them in financial assets issued by other firms or individuals, Firm A is a financial intermediary. A. TRUE B. FALSE

3. If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction. A. TRUE B. FALSE

4. Which of the following is not a government agency that regulates financial institutions? A. Insurance Commission B. Bangko Sentral ng Pilipinas C. Securities and Exchange Commission D. Bureau of Internal Revenue

5. The regulatory agency responsible for the promotion of growth and financial stability among insurance, pre-need, and HMO companies. A. BSP B. IC C. LGU D. SEC