FINANCIAL REHABILITATION AND INSOLVENCY ACT 5. Which of the following is LEAST correct?

1. This refer to the restoration of the debtor to a condition of successful operation a. The rehabilitation or liquidation shall be made with a view to ensure or
and solvency, if it is shown that its continuance of operation is economically maintain certainty and predictability in commercial affairs, preserve and
feasible and its creditors can recover by way of the present value of payments maximize the value of the assets of these debtors, recognize creditor rights
projected in the plan, more if the debtor continues as a going concern than if it is and respect priority of claims, and ensure equitable treatment of creditors
immediately liquidated. who are similarly situated.
A. Conservatorship b. Jurisdiction over liquidation, suspension of payments and corporate
B. Rehabilitation rehabilitation remains with the Security and Exchange Commission.
C. Insolvency c. When rehabilitation is not feasible, it is in the interest of the State to facilitate
D. Liquidation a speedy and orderly liquidation of these debtors’ assets and the settlement
of their obligations.
2. This shall refer to the person or persons, natural or juridical, appointed as such by d. The Insolvency Law was expressly repealed by Republic Act No. 10142
the court pursuant to this Act and which shall be entrusted with such powers and
duties as set forth in the act
A. Rehabilitation trustor 6. Who among the followings can avail the remedy of suspension of payments?
B. Liquidation in charge
C. Rehabilitation receiver a. All natural persons
D. Liquidation trustee b. Individual debtor
c. Partnership
3. One of the cooperative principles that emphasizes, self-help organizations d. Corporation
controlled by their members. If they enter into agreements with other
organizations, including government, or raise capital from external sources, they 7. Which of the following is LEAST correct?
shall do so on terms that ensure democratic control of their members and
maintain their cooperative autonomy a. Suspension of payments may be filed by the debtor
A. Voluntary and open membership b. Suspension of payments may be involuntary
B. Democratic member control c. Voluntary payments is one filed by the creditors
C. Autonomy and independence d. Suspension of payments may be involuntary.
D. Cooperation among cooperatives.
8. Who among the following are not the elected official of cooperatives?
4. This shall mean the full membership of the cooperative duly assembled for the
purpose of exercising all the rights and performing all the obligations pertaining a. Board of Trustees
to cooperatives, as provided by the Code, its articles of cooperation and bylaws b. Audit Committee
A. Members and other stakeholders c. Election Committee
B. General Assembly d. Board of Directors
C. Stakeholders
D. Regular members
9. For individual debtors, liquidation proceedings may be filed when liabilities 14. I. Once you have given the receipt of the requirements set by the BIR that is the
exceed assets, and the total debts only time where the BIR will inform the client when the documents are ready for
a. exceed P600,000 c. does not exceed P600,000 claiming.
b. exceed P500,000 d. does not exceed P500,000
II. BIR is the sole national government agency that regulates the country’s
10. _________________may file a verified petition for liquidation in the Regional Trial finances.
Court which has jurisdiction over its principal office as specified in its articles of
incorporation or partnership a. Only I is correct c. Both are correct
b. Only II is correct d. Neither is correct.
a. Insolvent individual debtor
b. Solvent individual debtor 15. How much is the the capitalization of BSP?
c. Insolvent juridical debtor
d. Solvent juridical debtor a. 200 million subscribed by public
b. 200 billion subscribed by publicly listed company
11. Which among the following is not the required audit function by the Cooperative c. 200 billion subscribed by the government
Code? d. 200 million subscribed by the government.

a. Social Audit 16. Which among the following is NOT among the primary objectives of BSP?
b. Management Audit
c. Financial Audit a. To maintain price stability conducive to a balanced and sustainable growth of
d. Quality Product and Inventory of stock Audit the economy and employment. It shall also promote and maintain monetary
stability and the convertibility of the peso
12. Which among the following are not among the instances under the law where b. Promote financial stability and closely work with the National Government,
bank deposits or investment in government bonds may be disclosed or looked including, but not limited to, the Department of Finance, Securities and
into. Exchange Commission, the Insurance Commission, and the Philippine Deposit
Insurance Corporation
a. upon written permission of the depositor c. Oversee the payment and settlement systems in the Philippines, including
b. in cases of impeachment; critical financial market infrastructures, in order to promote sound and
c. upon order of a competent court in all criminal cases prudent practices consistent with the maintenance of financial stability.
d. in cases where the money deposited or invested is the subject matter of the d. Promote broad and restricted access to high quality financial services and
litigation consider the interest of the general public.

13. The purpose of this agency is to maintain fair pricing for insurance products, 17. Does the BSP possess power to issue subpoena ?
protecting the solvency of insurance companies preventing unfair practice
a. BSP through any representative shall have the power to issue a subpoena for
a. IC c. SEC any purpose related to financial audit.
b. BIR d. BSP
 b. BSP through Governor shall have the power to issue a subpoena for the b. stock savings and loan associations
production of the books and records for the aforesaid purpose. c. Quasi bank
c. BSP through Governor or in his absence any duly authorized representative d. cooperative banks
shall have the power to issue a subpoena for any purpose related to financial
audit 21. Which of the following are not excluded from PDIC deposit insurance, whether
d. BSP through its Board shall have the power to issue a subpoena for the they are denominated, documented, recorded or booked as deposit by the bank
production of the books and records for the aforesaid purpose.
a. Deposits in domestic offices of its member-banks
18. Which of the following is not correct? b. Investment products such as bonds and securities, trust accounts and other
similar instruments
a. PDIC provides a maximum deposit insurance coverage of PhP500,000 per c. Deposit accounts or transactions that are unfunded, fictitious or fraudulent
depositor per bank. d. Deposit accounts or transactions that constitute and/or emanate from unsafe
b. PDIC covers all types of bank deposits in banks whether denominated in local and unsound banking practice/s as determined by the PDIC, in consultation
or foreign currencies with the BSP, after due notice and hearing and publication of PDIC’s cease &
c. All deposit accounts of a depositor in a closed bank maintained in the same desist order against such as deposit accounts/transaction
right and capacity shall be added together.
d. A joint account shall be insured jointly from any individually-owned deposit 22. I. A deposit insurance is essentially the assured amount a bank depositor gets in
account. the case that the bank cannot fulfill its obligations.
II. It is mandatory by law and is designed to maintain financial stability
19. Which of the following is NOT correct?
a. Only I is correct
a. PDIC was established to promote and safeguard the interests of the b. Only II is correct
borrowing public by way of providing insurance coverage on all insured c. Both are correct
loans. d. Both are wrong
b. PDIC also aims to strengthen the mandatory deposit insurance coverage
system to generate, preserve, and maintain faith and confidence in the 23. Which among the following unlawful acts are not covered by AMLA?
country's banking system, and protect it from illegal schemes and
machinations. a. Terrorism financing and organizing or directing others to commit terrorism
c. PDIC provides a maximum deposit insurance coverage of PhP500,000 per financing (R.A. 10168).
depositor per bank. b. Attempt/conspiracy to commit terrorism financing and organizing or
d. Membership with PDIC is mandatory for all banks licensed by the BSP to directing others to commit terrorism financing (R.A. 10168).
operate in the Philippines c. Attempt/conspiracy to commit libel and damage to property.
d. Accomplice to terrorism financing or conspiracy to commit terrorism
20. Membership with PDIC is mandatory for all banks licensed by the BSP to operate financing
in the Philippines which includes, except

a. commercial banks 24. Which of the following is NOT true on AMLA Law?
 insured up to P500,000. Each depositor’s total shares in all of his/her joint
a. It criminalizes money laundering accounts shall be separately insured up to P500,000
b. It imposes requirements on customer identification, record keeping and
reporting of covered and suspicious transactions a. True b. False
c. It applies bank deposits secrecy laws in strict sense.
d. It provides for bank inquiry and freeze ex parte 30. Member in the cooperative includes a person either natural or juridical who
petition/seizure/forfeiture/recovery of dirty money/property adhering to the principles set forth in this Code and in the Articles of Cooperative,
has been admitted by the cooperative as member
25. One organized for the primary purpose of providing a wide range of financial
services to group of people who assemble themselves under RA 9520 and their a. True b. False
members which is under the supervision of both BSP and CDA.
31. All deposits of whatever nature with banks or banking institutions in the
a. Advocacy Cooperative Philippines including investments in bonds issued by the Government of the
b. Cooperative Bank Philippines, its political subdivisions and its instrumentalities, are hereby
c. Financial Service Cooperative considered as of an relatively confidential nature and may be examined, inquired
d. Multi-Purpose Cooperative or looked into by any person

26. “In Trust For” (ITF) account, “Patricia In Trust For Johnny,” Johnny is considered a. True b. False
the depositor
32. Any violation of this law will subject offender upon conviction, to an imprisonment
a. True b. False of not more than three years or a fine of not more than twenty thousand pesos or
both, in the discretion of the court.
27. It shall be unlawful for any official or employee of a banking institution to disclose
to any person other than those mentioned in Section two hereof any information a. True b. False
concerning said deposits
33. Revenue Regulations (RR) are issuances signed by the Secretary of Finance, upon
a. True b. False recommendation of the Commissioner of Internal Revenue, that specify, prescribe
or define rules and regulations for the effective enforcement of the provisions of
28. In an account with combined and FAO/ITF, “Michael and/or Mark In Trust For the National Internal Revenue Code (NIRC) and related statutes.
Ezekiel, “ Michael or Mark is considered the depositor
a. True b. False
a. True b. False
34. A voluntary court-supervised rehabilitation may be initiated by the insolvent
debtor through a verified petition, accompanied by: the approval of the owner in
29. If a depositor is the sole beneficial owner of a single “For the Account of”, “By” and case of sole proprietorship; an approval by majority vote of the partners in case of
“In Trust For” accounts, the consolidated balances of these accounts shall be partnership; or an approval by a majority vote of the board of directors or
trustees, with authority from the stockholders or members representing at least
 two-thirds (2/3) of the outstanding capital stock or the members, in a meeting a. True b. False
duly called for the purpose.
40. 1. Five (5) or more natural persons who are Filipino citizens, of legal age, having a
a. True b. False common bond of interest and are actually residing or working in the intended area
of operation, may organize a primary cooperative under the Code. ( False)
35. It is hereby declared to be the policy of the State to strengthen the mandatory
deposit insurance coverage system to generate, preserve, maintain faith and An associate member is one who has complied with all the membership
confidence in the country’s banking system, and protect it from illegal schemes requirements and entitled to all the rights and privileges of membership
and machinations. It is hereby declared to be the policy of the State to strengthen
the mandatory deposit insurance coverage system to generate, preserve, maintain a. True b. False
faith and confidence in the country’s banking system, and protect it from illegal 41. The AMLA investigates money laundering and other financial crimes to protect
schemes and machinations. financial institutions and deter criminals from making the Philippines a money
laundering site for criminal proceeds
a. True b. False
a. True b. False
36. Each member of a primary cooperative shall have only one (1) vote
42. An associate member is one who has complied with all the membership
a. True b. False requirements and entitled to all the rights and privileges of membership

37. The AMLC functions as regulator, financial intelligence unit and law enforcement a. True b. False
agency. Its mandate includes protecting the Philippines’ financial system from
criminal activities and extending cooperation to other international financial 43. The Government to give encouragement to the people to deposit their money in
regulators engaged in money laundering investigations banking institutions and to discourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist in the economic
a. True b. False development of the country

38. All deposits of whatever nature with banks or banking institutions in the a. True b. False
Philippines including investments in bonds issued by the Government of the
Philippines, its political subdivisions and its instrumentalities, are hereby 44. Any violation of Bank Secrecy Law will subject offender upon conviction, to an
considered as of an relatively confidential nature and may be examined, inquired imprisonment of not more than five years and a fine of not more than twenty
or looked into by any person thousand pesos or both, in the discretion of the court

a. True b. False a. True b. False

39. Any violation of this law will subject offender upon conviction, to an imprisonment 45. The basic principle of insurance is to spread risk among a larger number of people
of not more than three years or a fine of not more than twenty thousand pesos or thereby allowing these people to weather a loss since their respective share of
both, in the discretion of the court risks are smaller and thus more manageable
 a. True b. False office until their successors are duly elected an qualified, or until duly removed for
caused
46. The Anti-Money Laundering Act 2001 generally requires fintechs and other
obligated institutions to monitor customer transactions on an ongoing basis in a. True b. False
order to detect suspicious activity and promote money laundering
52. Corporate liquidation is a remedy for corporations, partnerships and associations
a. True b. False which foresee the impossibility of meeting their debts when they respectively fall
due with an end view to restore and reinstate them to their former position of
47. The SEC is involved in policymaking and has the power to investigate any successful operation and solvency
violations of securities laws
a. True b. False
a. True b. False

48. Philippine Deposit Insurance Corporation hereinafter referred to as the

‘Corporation’ which shall insure as herein provided, the deposits of all banks
which are entitled to the benefits of insurance and which shall have the powers
hereinafter granted

a. True b. False

49. It shall be unlawful for any official or employee of a banking institution to disclose
to any person other than those mentioned in Section two hereof any information
concerning said deposits

a. True b. False

50. The purpose of Bangko Sentral ng Pilipinas is to maintain fair pricing for insurance
products, protecting the solvency of insurance companies, preventing unfair
practices by insurance companies, and ensuring availability of insurance coverage

a. True b. False

51. Unless otherwise provided in the Cooperative Code, the direction and
management of the affairs of a cooperative shall be vested in a board of directors
which shall be composed of not less that five (5) nor more than fifteen (15)
members elected by the general assembly for a term of one (1) year and shall hold