Finmar
Modules
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Answers for Module 2: Chapter 6
Review the correct answers and explanations for each question in this module.
Q1: What is the basic function of the Philippine Financial System?
Q2: Which agency is the principal regulator for all depository institutions in the Philippines?
Q3: What type of bank is described as performing investment house functions in addition to commercial banking authority?
Q4: Which of the following is NOT a function of a Commercial Bank (KB)?
Q5: What is the primary function of Thrift Banks?
Q6: A Private Development Bank (PDB) helps in the construction, expansion, and rehabilitation of which sectors?
Q7: What unique feature allows Rural Banks to grant loans in rural areas?
Q8: Which specialized government bank provides financial support for the Comprehensive Agrarian Reform Program (CARP)?
Q9: What is the main business of an Investment House?
Q10: How do Investment Banks primarily differ from Commercial Banks?
Q11: Which institution extends credit facilities by discounting commercial papers or leasing equipment?
Q12: A Securities Dealer makes a profit by:
Q13: What is described as the most significant economic function of Savings and Loan Associations (S&Ls)?
Q14: How do Mutual Funds primarily help savers?
Q15: Which institution is engaged in lending money with personal property like jewelry as collateral?
Q16: Which of these is an example of a government non-bank financial institution?
Q17: The Social Security System (SSS) provides benefits to which group of employees?
Q18: A key feature of Credit Unions is that their members:
Q19: What is the purpose of the Al-Amanah Islamic Investment Bank?
Q20: The Development Bank of the Philippines (DBP) provides loans for what primary purpose?
Q21: What type of bank is PSBank an example of?
Q22: Which is an example of a new financial product introduced to deepen capital markets?
Q23: The amendments to the Securities Regulation Code and Corporation Code by the SEC are intended to:
Q24: What is the significance of the Philippines becoming a BIS-Reporting Country?
Q25: What is one of the "3Rs" that heighten financial stability concerns?
Q26: The normalization of US monetary policy creates an incentive for global capital to flow where?
Q27: What has been the trend for the debt-to-equity ratio of non-financial corporations from 2008 to 2018?
Q28: What is a primary function of Pension Funds like SSS and GSIS?
Q29: Which institution provides housing loans to both government and private employees?
Q30: Insurance companies take savings in the form of annual premiums and invest them in what?
Q31: A Stock Savings and Loan Association (SLA) is primarily engaged in servicing the needs of what group?
Q32: What does underwriting, a function of investment banks, involve?
Q33: Which regulatory agency entered into a cross-border partnership with eight other deposit insurance agencies?
Q34: Which of the following is an example of a Universal Bank?
Q35: Which of the following is a key risk to the Philippine financial system mentioned in the text?
Q36: Despite incentives to invest abroad, what did Philippine banks do according to the text?
Q37: A "lending investor" is engaged in what primary business?
Q38: What group do Cooperative Banks primarily assist?
Q39: What type of bank is a Stock Savings and Mortgage Bank (SSMB) an example of?
Q40: The rise in consumer loans since 2012 has been notable in which areas?