General Banking Law

Answer No. Statement

A 1 It shall refer to entities engaged in the lending of funds
obtained in the form of deposits.
A. BANKS
B. PRE-NEED COMPANIES
C. CREDIT COMPANIES
D. QUASI-BANKS
B 2 Banks are classified into the following except:
A. COOPERATIVE BANKS
B. URBAN BANKS
C. UNIVERSAL BANKS
D. COMMERCIAL BANKS
C 3 Which of the following composes a thrift bank?
A. ISLAMIC BANKS
B. NATIONAL BANKS
C. PRIVATE DEVELOPMENT BANKS
D. COMMERCIAL BANKS
D 4 It includes the conduct of examination to determine
compliance with laws and regulations if the circumstances
so warrant as determined by the Monetary Board.
A. EXAMINATION
B. OBSERVATION
C. INSPECTION
D. SUPERVISION
A 5 It shall refer to entities engaged in the borrowing of
funds through the issuance, endorsement, or assignment
with recourse or acceptance of deposit substitutes for
purposes of relending or purchasing of receivables and
other obligations.
A. QUASI-BANKS
B. URBAN BANKS
C. MORTGAGE BANKS
D. COMMERCIAL BANKS
A 6 Who shall decide the determination of whether a person or
entity is performing banking or quasi-banking functions
without the Bangko Sentral authority?
A. MONETARY BOARD
B. FISCAL BOARD
C. GOVERNOR OF BANGKO SENTRAL NG PILIPINAS
D. PRESIDENT OF THE PHILIPPINES
D 7 The following are conditions in organizing banks or quasi-
banks, except:
A. THAT THE ENTITY IS A STOCK CORPORATION
B. THAT ITS FUNDS ARE OBTAINED FROM THE PUBLIC, WHICH
SHALL MEAN TWENTY (20) OR MORE PERSONS
C. THAT THE MINIMUM CAPITAL REQUIREMENTS PRESCRIBED BY THE
 MONETARY BOARD FOR EACH CATEGORY OF BANKS ARE SATISFIED
D. THAT THE ENTITY MAY BE A STOCK OR NONSTOCK CORPORATION
C 8 No new _______ shall be established within three (3) years
from the effectivity of Republic Act No. 8791.
A. UNIVERSAL BANK
B. COOPERATIVE BANK
C. COMMERCIAL BANK
D. ISLAMIC BANK
B 9 The Monetary Board may prescribe rules and regulations on
the types of stock a bank may issue, including the terms
thereof and rights appurtenant thereto to determine
compliance with laws and regulations governing capital and
equity structure of banks: Provided, That banks shall
issue ______ only.
A. ORDINARY STOCKS
B. PAR VALUE STOCKS
C. TREASURY STOCKS
D. PREFERRED STOCKS
A 10 What is the percentage of the voting stock of domestic
banks can foreign individuals and non-bank corporations
own or control?
A. 40%
B. 50%
C. 60%
D. 75%
C 11 Which of the following can open branches within or outside
the Philippines?
A. ISLAMIC BANKS OR QUASI-BANKS
B. COOPERATIVE BANKS OR URBAN BANKS
C. COMMERCIAL BANKS OR UNIVERSAL BNKS
D. QUASI-BANKS OR THRIFT BANKS
B 12 To promote competitive conditions in financial markets,
the Monetary Board may further limit to forty percent
(40%) equity investments of universal banks in quasi-
banks. What type of bank is this rule applied to?
A. THRIFT BANKS
B. COMMERCIAL BANKS
C. ISLAMIC BANKS
D. QUASI-BANKS
C 13 A universal bank can own up to one hundred percent (100%)
of the equity in the following except one:
A. THRIFT BANKS
B. FINANCIAL ALLIED ENTERPRISE
C. COMMERCIAL BANKS
D. RURAL BANKS
A 14 Loans, other credit accommodations and guarantees shall
exclude the following except one:
A. LOANS OR CREDIT ACCOMMODATIONS WHICH THE MONETARY BOARD
MAY FROM TIME TO TIME, SPECIFY AS RISK ITEMS
B. LOANS AND OTHER CREDIT ACCOMMODATIONS FULLY GUARANTEED
BY THE GOVERNMENT AS TO THE PAYMENT OF PRINCIPAL AND
 INTEREST
C. LOANS AND OTHER CREDIT ACCOMMODATIONS SECURED BY
OBLIGATIONS OF THE BANGKO SENTRAL OR OF THE PHILIPPINE
GOVERNMENT
D. LOANS, CREDIT ACCOMMODATIONS AND ACCEPTANCES UNDER
LETTERS OF CREDIT TO THE EXTENT COVERED BY MARGIN
DEPOSITS
A 15 The limit on loans, credit accommodations, and guarantees
prescribed herein shall not apply to loans, credit
accommodations and guarantees extended by a _____ bank to
its shareholders.
A. COOPERATIVE
B. COMMERCIAL
C. UNIVERSAL
D. THRIFT
B 16 Which of the following statements is incorrect concerning
foreclosure of real estate mortgage?
A. OWNERS OF PROPERTY THAT HAS BEEN SOLD IN A FORECLOSURE
SALE PRIOR TO THE EFFECTIVITY OF THIS ACT SHALL RETAIN
THEIR REDEMPTION RIGHTS UNTIL THEIR EXPIRATION.
B. JURIDICAL PERSONS WHOSE PROPERTY IS BEING SOLD PURSUANT
TO A JUDICIAL FORECLOSURE, SHALL HAVE THE RIGHT TO
REDEEM THE PROPERTY UNTIL, BUT NOT AFTER, THE
REGISTRATION OF THE CERTIFICATE OF FORECLOSURE SALE
WITH THE APPLICABLE REGISTER OF DEEDS WHICH IN NO CASE
SHALL BE MORE THAN THREE (3) MONTHS AFTER FORECLOSURE,
WHICHEVER IS EARLIER
C. ANY PETITION IN COURT TO ENJOIN THE CONDUCT OF
FORECLOSURE PROCEEDINGS INSTITUTED SHALL BE GIVEN DUE
COURSE ONLY UPON THE FILING BY THE PETITIONER OF A BOND
IN AN AMOUNT FIXED BY THE COURT CONDITIONED THAT HE
WILL PAY ALL THE DAMAGES WHICH THE BANK MAY SUFFER BY
THE ENJOINING OR THE RESTRAINT OF THE FORECLOSURE
PROCEEDING.
D. IN THE EVENT OF FORECLOSURE, WHETHER JUDICIALLY OR
EXTRAJUDICIALLY, OF ANY MORTGAGE ON REAL ESTATE WHICH
IS SECURITY FOR ANY LOAN, THE MORTGAGOR OR DEBTOR WHOSE
REAL PROPERTY HAS BEEN SOLD FOR THE FULL PAYMENT OF HIS
OBLIGATION SHALL HAVE THE RIGHT TO REDEEM THE PROPERTY
BY PAYING THE AMOUNT DUE UNDER THE MORTGAGE DEED
C 17 It shall mean the total of the unimpaired paid-in capital
including paid-in surplus, retained earnings and undivided
profit, net of valuation reserves and other adjustments as
may be required by the Bangko Sentral.
A. RESERVES
B. CAPITAL
C. NET WORTH
D. EQUITY
C 18 What shall incorporate an assessment of the bank's
ownership structure, directors and senior management, its
operating plan and internal controls as well as its
 projected financial condition and capital base?
A. CONSERVATORSHIP
B. LIQUIDATION
C. BANK LICENSING PROCESS
D. OPERATION PROCEDURES
B 19 Which of the following is followed in determining the
citizenship of a corporation in the case of foreign
stockholdings?
A. PLACE OF INCORPORATION
B. CITIZENSHIP OF THE CONTROLLING STOCKHOLDERS OF THE
CORPORATION
C. PLACE OF BUSINESS OPERATIONS OF THE CORPORATION
D. CITIZENSHIP OF THE CONTROLLING STOCKHOLDERS AND THE
PLACE OF BUSINESS OPERATIONSS OF THE CORPORATION
D 20 Stockholdings of individuals shall be considered family
groups or related interests if they are related to each
other within the following except one:
A. AFFINITY
B. LEGITIMATE
C. COMMON-LAW
D. SIXTH DEGREE OF CONSANGUINITY
C 21 Which of the following shall be considered as related
interests and must be fully disclosed?
A. STOCKHOLDINGS OF INDIVIDUALS SHALL BE CONSIDERED FAMILY
GROUPS OR RELATED INTERESTS IF THEY ARE RELATED TO EACH
OTHER WITHIN SIXTH DEGREE OF CONSANGUINITY OR COMMON-
LAW
B. STOCKHOLDINGS OF INDIVIDUALS SHALL BE CONSIDERED FAMILY
GROUPS OR RELATED INTERESTS IF THEY ARE RELATED TO EACH
OTHER WITHIN LEGITIMATE OR SPECIAL LAW
C. TWO OR MORE CORPORATIONS OWNED OR CONTROLLED BY THE
SAME FAMILY GROUP
D. TWO OR MORE CORPORATIONS OWNED OR CONTROLLED BY THE
SAME GROUP OF CORPORATIONS
B 22 Who shall not register the by-laws of any bank, or any
amendment thereto, unless accompanied by a certificate of
authority from the Bangko Sentral?
A. DEPARTMENT OF TRADE AND INDUSTRY
B. SECURITIES AND EXCHANGE COMMISSION
C. MONETARY BOARD
D. BANGKO SENTRAL
A 23 It shall mean a person other than an officer or employee
of the bank, its subsidiaries or affiliates or related
interests.
A. INDEPENDENT DIRECTOR
B. INTERLOCKING DIRECTOR
C. RECEIVER
D. CONSERVATOR
D 24 In the case of a bank merger or consolidation, what should
be the number of directors?
A. Not more than 15 persons
 B. 5 TO 25 PERSONS
C. NOT LESS THAN 20 PERSONS
D. NOT MORE THAN 21 PERSONS
B 25 Republic Act No. 8791 is entitled:
A. NEW CENTRAL BANK ACT
B. THE GENERAL BANKING LAW OF 2000
C. FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010
D. PHILIPPINE DEPOSIT INSURANCE CORPORATION
C 26 A bank and its branches and offices shall be treated as
_____.
A. GROUP OF CORPORATION
B. CORPORATION
C. ONE UNIT
D. CONSOLIDATED UNIT
A 27 In transact of their businesses, banks including their
branches and offices during workings days may open within
how many hours?
A. 4 HOURS
B. 3 HOURS
C. 8 HOURS
D. 5 HOURS
B 28 In transact of their businesses, banks including their
branches and offices may operate during holidays within
how many hours?
A. 2 HOURS
B. 5 HOURS
C. 8 HOURS ONLY
D. THEY ARE NOT ALLOWED TO OPEN DURING HOLIDAYS
C 29 It shall mean Mondays to Fridays, except if such days are
holidays.
A. WEEK DAYS
B. CALENDAR DAYS
C. WORKING DAYS
D. BUSINESS DAYS
D 30 Allied enterprises may either be _______ or _____
A. JUDICIAL; EXTRAJUDICIAL
B. FOREIGN; DOMESTIC
C. REGULAR; SPECIAL
D. FINANCIAL; OR NON-FINANCIAL
D 31 The Bangko Sentral shall provide incentives to banks
which, without government guarantee, extend loans to
finance any of the following except one:
A. EDUCATIONAL INSTITUTIONS
B. COOPERATIVES
C. SOCIALIZED OR LOW-COST HOUSING
D. FOREIGN INSTITUTIONS
A 32 A bank shall not directly engage in insurance business as
the _____.
A. INSURER
B. BANKER
C. RECEIVER
 D. MAKER
A 33 The Monetary Board may require a bank, quasi-bank or trust
entity to engage the services of an _____ to be chosen by
the bank, quasi-bank or trust entity concerned from a list
of certified public accountants acceptable to the Monetary
Board.
A. INDEPENDENT AUDITOR
B. INTERNAL AUDITOR
C. INDEPENDENT DIRECTOR
D. INTERLOCKING DIRECTOR
C 34 Financial statements submitted by banks shall be published
as prescribed by the Bangko Sentral with the following
prescriptions except:
A. AT LEAST ONCE EVERY QUARTER IN A NEWSPAPER OF GENERAL
CIRCULATION IN THE CITY OR PROVINCE WHERE THE PRINCIPAL
OFFICE IS LOCATED
B. IF NO NEWSPAPER IS PUBLISHED IN THE SAME PROVINCE, THEN
IN A NEWSPAPER PUBLISHED IN METRO MANILA OR IN THE
NEAREST CITY OR PROVINCE
C. IN FILIPINO OR ANY OTHER LANGUAGE
D. AT LEAST ONCE EVERY QUARTER IN A NEWSPAPER OF GENERAL
CIRCULATION THE PRINCIPAL BRANCH OR OFFICE IN THE CASE
OF A FOREIGN BANK, IS LOCATED
D 35 Which of the following shall not be published by banks?
A. FINANCIAL STATEMENTS
B. A STATEMENT IF NO CAPITAL IS ASSIGNED TO A BRANCH OF A
FOREIGN BANK
C. THE BANK AND ITS BRANCHES
D. THE AMOUNT OF A BANK’S AUTHORIZED OR SUBSCRIBED CAPITAL
STOCK
B 36 The Monetary Board allows a foreign bank to acquire voting
stocks up to 100% of a domestic bank. To how many bank/s
can the foreign bank acquire such stock?
A. AT LEAST 5 BANKS
B. ONLY ONE BANK
C. LESS THAN 5 BANKS
D. THEY ARE NOT ALLOWED BY THE MONETARY BOARD TO OWN 100%
A 37 Aside from the person duly authorized by the Monetary
Board to engage in trust business, who shall act as a
trustee or administer any trust or hold property in trust
or on deposit for the use, benefit, or behalf of others?
A. STOCK CORPORATION
B. THRIFT BANKS
C. COMMERCIAIL BANKS
D. NON-STOCK CORPORATION
C 38 It shall act as a trustee to administer the funds or
property under its custody with the diligence that a
prudent man would exercise in the conduct of an enterprise
of a like character and with similar aims.
A. MONETARY BOARD
B. BANKS
 C. TRUST ENTITY
D. LEGAL ENTITY
B 39 It includes the issuance of rules of conduct or the
establishment of standards of operation for uniform
application to all institutions or functions covered,
taking into consideration the distinctive character of the
operations of institutions and the substantive
similarities of specific functions to which such rules,
modes or standards are to be applied.
A. EXAMINATION
B. SUPERVISION
C. INSPECTION
D. CONSERVATORSHIP
C 40 Foreign individuals can acquire up to 40% voting stock of
a domestic bank. This rule is applied to which of the
following?
A. FOREIGNERS
B. DOMESTIC BANKS
C. FILIPINOS
D. RURAL BANKS
A 41 In determining whether an individual is fit and proper to
hold the position of a director or officer of a bank, all
of the following are considered except one:
A. SKILLS
B. EXPERIENCE
C. TRAINING
D. INTEGRITY
B 42 The equity investment of a universal bank, or of its
wholly or majority-owned subsidiaries, in a single non-
allied enterprise shall not exceed thirty-five percent
(35%) of the _____ and ____ in that enterprise.
A. VOTING STOCK, TOTAL ASSETS
B. VOTING STOCK, TOTAL EQUITY
C. ANY STOCK, TOTAL ASSETS
D. ANY STOCK, TOTAL EQUITY
A 43 A commercial bank may own up to one hundred percent (100%)
of the equity in the following except one:
A. UNIVERSAL BANKS
B. RURAL BANKS
C. THRIFT BANKS
D. NON-FINANCIAL ALLIED ENTERPRISE
D 44 A bank may acquire, hold or convey real property under the
following circumstances, except:
A. SUCH AS SHALL BE MORTGAGED TO IT IN GOOD FAITH BY WAY
OF SECURITY FOR DEBTS
B. SUCH AS SHALL BE CONVEYED TO IT IN SATISFACTION OF
DEBTS PREVIOUSLY CONTRACTED IN THE COURSE OF ITS
DEALINGS
C. SUCH AS IT SHALL PURCHASE TO SECURE DEBTS DUE IT
D. SUCH AS IT SHALL PURCHASE AT BANKS UNDER JUDGMENTS,
DECREES, MORTGAGES, OR TRUST DEEDS HELD BY IT
D 45 The following are services performed by banks except one:
A. RECEIVE IN CUSTODY FUNDS, DOCUMENTS AND VALUABLE
OBJECTS
B. RENT OUT SAFETY DEPOSIT BOXES
C. ACT AS FINANCIAL AGENT AND BUY AND SELL, BY ORDER OF
AND FOR THE ACCOUNT OF THEIR CUSTOMERS, SHARES,
EVIDENCES OF INDEBTEDNESS AND ALL TYPES OF SECURITIES
D. UPON LATER APPROVAL OF THE MONETARY BOARD, ACT AS
MANAGING AGENT, ADVISER, CONSULTANT OR ADMINISTRATOR OF
INVESTMENT MANAGEMENT/ADVISORY/CONSULTANCY ACCOUNTS
C 46 In case a bank or quasi-bank notifies the Bangko Sentral
or publicly announces a bank holiday, for more than thirty
(30) days, the Monetary Board may summarily and without
need for prior hearing close such banking institution and
place it under receivership of the _____.
A. SECURITIES AND EXCHANGE COMMISSION
B. BANGKO SENTRAL
C. PHILIPPINE DEPOSIT INSURANCE CORPORATION
D. MONETARY BOARD
A 47 The following are prohibited transactions by a director,
officer, employee, or agent of any bank except one:
A. FURNISH FALSE OR MAKE MISREPRESENTATION OR SUPPRESSION
OF MATERIAL FACTS FOR THE PURPOSE OF OBTAINING,
RENEWING, OR INCREASING A LOAN OR OTHER CREDIT
ACCOMMODATION OR EXTENDING THE PERIOD THEREOF
B. OUTSOURCE INHERENT BANKING FUNCTIONS
C. ACCEPT GIFTS, FEES OR COMMISSIONS OR ANY OTHER FORM OF
REMUNERATION IN CONNECTION WITH THE APPROVAL OF A LOAN
OR OTHER CREDIT ACCOMMODATION FROM SAID BANK
D. MAKE FALSE ENTRIES IN ANY BANK REPORT OR STATEMENT OR
PARTICIPATE IN ANY FRAUDULENT TRANSACTION, THEREBY
AFFECTING THE FINANCIAL INTEREST OF, OR CAUSING DAMAGE
TO, THE BANK OR ANY PERSON
B 48 The following are prohibited transactions for a borrower
of a bank except one:
A. FRAUDULENTLY OVERVALUE PROPERTY OFFERED AS SECURITY FOR
A LOAN OR OTHER CREDIT ACCOMMODATION FROM THE BANK
B. OVERVALUE OR AID IN OVERVALUING ANY SECURITY FOR THE
PURPOSE OF INFLUENCING IN ANY WAY THE ACTIONS OF THE
BANK OR ANY BANK
C. ATTEMPT TO DEFRAUD THE SAID BANK IN THE EVENT OF A
COURT ACTION TO RECOVER A LOAN OR OTHER CREDIT
ACCOMMODATION
D. OFFER ANY DIRECTOR, OFFICER, EMPLOYEE OR AGENT OF A
BANK ANY GIFT, FEE, COMMISSION, OR ANY OTHER FORM OF
COMPENSATION IN ORDER TO INFLUENCE SUCH PERSONS INTO
APPROVING A LOAN OR OTHER CREDIT ACCOMMODATION
APPLICATION
D 49 No bank or quasi-bank shall declare _____ greater than its
accumulated net profits then on hand, deducting therefrom
its losses and bad debts.
 A. PAYMENTS
B. COMPENSATIONS
C. RENUMERATIONS
D. DIVIDENDS
A 50 The Monetary Board may allow the posting of the financial
statements of a bank, quasi-bank or trust entity in _____
it may determine, in lieu of the newspaper publication
required, when warranted by the circumstances
A. PUBLIC PLACES
B. MAGAZINES
C. PHILIPPINES
D. BOOKS