Question27

Mutual funds need a compliance officer who is supposed to ensure that the operations of the fund are in line with the objective and guidelines.

Select one:

True

False

Question28

The performance of insurance companies is fully dependent on the return on invested funds.

Select one:

True

False

Question30

He is the party who receives the payment should a loss occur and who may suffer potential harm.

Answer:

Question31

This insures against the loss of a ship and its cargo.

Answer:

Question32

It protects against liability for harm the insured may cause to others as a result of product failure or accidents.

Answer:

Question34

Banks are subject to the Financial Consumer Protection Framework of the BSP, which sets out the minimum standards of consumer protection in the areas of disclosure and transparency; protection of client information; fair treatment; effective financial education.

Select one:

True

False

Question35

Mutual funds are also known as.

Answer:

Question36

A situation where a corporation would sell one of its units to new shareholders through an IPO.

Answer:

Question37

These mutual funds must register with the SEC and not required to provide interested investors with a prospectus that discloses details about the components of the funds and the risks involved.

Select one:

True

False

Question38

It allows small investors to participate with a low minimum investment.

Answer:

Question39

These are designed to mimic particular stock indexes and are traded on a stock exchange just like stocks.

Answer:

Question40

It protects property against losses due to accidents, fire, theft, storm, disasters, explosion, other calamities, and even neglect.

Answer:

Question41

It compiles the financial statements, list of insurers, and other relevant information pertaining to the insurance industry.

Answer:

Question42

The assets of a bank under liquidation are held in trust for the equal benefit of all creditors.

Select one:

True

False

Question43

The directors and officers of banks who knowingly assent to patently unlawful acts of the bank or who are guilty of gross negligence or bad faith in directing the affairs of the bank or acquire any personal or pecuniary interest in conflict with their duties as such directors or officers, will be liable jointly and severally for all resulting damages suffered by the bank and its shareholders.

Select one:

True

False

Question44

Monetary Board can suspend or remove the offending director or officer of a bank.

Select one:

True

False

Question46

It is a closed-end fund that invest in real estate or mortgages.

Answer:

Question47

The Philippine Deposit Insurance Corporation was established on June 22, 1963 by Republic Act 3591.

Under thePDICCharter, the corporation is mandated to give bank depositors financial stability by providing permanent and continuing deposit insurance. {F}

The Philippine Deposit Insurance Corporation has these basic functions as co-regulator of banks and receiver and liquidator of closed banks. {F}

Since June 2009, the Maximum Deposit Insurance Coverage is P500,000 per bank. {F}

It is mandatory that all operating banks are members of thePDIC. {T}

The Philippine Deposit Insurance Corporation covers the risk of a bank closure ordered by the Monetary Board and theft. {F}

Bank losses due to theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war, are exclusions to the coverage byPDIC. {T}

Under Republic Act 3591 the insurance premium is paid by the banks. {T}

Deposits in different banking institutions are insured as one. {F}

If a bank has one or more branches, the main office and all branch offices are considered as independent banks. {F}

Select one:

True

False

Question48

VC funds typically require a large minimum investment and therefore exclude small investors.

Select one:

True

False

Question49

Mutual funds can generate returns to the shareholders through mutual fund share price appreciation only.

Select one:

True

False

Question50

Mutual funds are also regulated by laws, many of which attempt to ensure that investors fully understand the risks.

Select one:

True

False