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finap6
Contributed by: Ann
  • 1. It represents the stockholders right to a certain portion of the assets of a corporation upon liquidation and to a certain shares of the profit after prior claims have been paid.
A) neither bonds and stocks
B) bonds
C) none of these
D) both bonds and stocks
E) Stock
  • 2. Drawee demand action from the drawer.
A) all of these
B) true
C) maybe
D) false
  • 3. These are mutual institution whose members have some common bonds, such as employment in the same company.
A) banks
B) pawnshops
C) credit unions
D) retail stores
E) none of these
  • 4. Banks Deposits" express a promise to pay a definite sum of money at a future date
A) neither true nor false
B) false
C) both true and false
D) true
E) none of these
  • 5. A personal Cheque is one which_________
A) none of these
B) The payee gives the drawee instructions to pay the drawer a certain amount
C) One which is belongs to a person alone
D) the drawer gives the drawee instructions to pay the payee a certain amount
E) The drawee gives instructions to the drawer to pay the payee a certain amount
  • 6. How many kinds of check?
A) none of these
B) 12
C) 10
D) 16
E) 9
  • 7. The depositor can be charge with crime of estafa for drawing a check without any deposits.
A) commercial credit instrument
B) open check
C) bouncing check
D) post dated check
E) none of these
  • 8. The sources of credit are classified into
A) 15
B) 18
C) 10
D) 8
E) none of these
  • 9. A maturity value is P 5,366.25 and maturity date is Nov. 16 and the 9% discount rate on Oct. 14. Find the BANK DISCOUNT.
A) NONE OF THESE
B) P125.50
C) P50.00
D) P44.27
E) P35.50
  • 10. A notes of P10,500 was computed on a 120days note dated Aug. 15, 2009 at an interest rate 6%. find the maturity value.
A) P31,765
B) NONE OF THESE
C) P12,453.50
D) P10,710
E) ALL OF THESE
  • 11. It is the party entitled to receive payment.
A) payor
B) drawee
C) drawer
D) none of these
E) payee
  • 12. Sometimes called building and loans associations which sell financial services to the public and invest the fund acquired.
A) none of these
B) saving and mortgage banks
C) sales finance companies
D) saving and loans associations
E) all of these
  • 13. How many kinds of stock?
A) 6
B) 4
C) 5
D) 2
  • 14. Are those earn income in the form of dividends or interest such as stocks and bonds.
A) none of these
B) investment credit instrument
C) commercial credit instruments
D) all of these
  • 15. It is an endorsement that passes title to a negotiable instrument with certain restriction.
A) none of these
B) blank endorsement
C) special endorsement
D) restrictive endorsement
E) qualified endorsement
  • 16. They are sometimes called "loan sharks" or usurers because they lend money at an interest rate of 20% (5/6) which is over and above what the law allows.
A) private individuals
B) retail stores
C) personal loans
D) credit unions
E) none of these
  • 17. Endorsement are classified into______.
A) 5
B) 4
C) 6
D) none of these
E) 8
  • 18. A person to whom a negotiable instrument is transferred by indorsement
A) indorsee
B) none of these
C) indorser
D) acceptor
E) holder
  • 19. This is characterized by two parallel lines on the upper left-hand corner
A) certified check
B) crossed check
C) open check
D) post dated check
E) none of these
  • 20. refers to the promises to pay the principal as well as the interest to the holder at a certain specified time indicated on the face of the instrument.
A) bonds
B) none of these
C) stocks
D) neither bonds nor stocks
E) both bonds and stocks
  • 21. Possesses a negotiable instrument issued or indorsed to that person order or bearer.
A) none of these
B) indorser
C) acceptor
D) holder
E) indorsee
  • 22. It is the financial institution that pays check presented for payment.
A) drawer
B) drawee
C) payer
D) none of these
E) payee
  • 23. A 5 months note with a face value at P7,500 bears interest at 8%. Find the Maturity Date.
A) NONE OF THESE
B) P1,500
C) P7,750
D) P2.456.00
E) ALL OF THESE
  • 24. It is payable on demand that is as soon as the importer's receive it.
A) none of these
B) demand draft
C) bank draft
D) sight draft
E) time draft
  • 25. Find the bank discount of 90 days, 8% note for P 7,920 date Mar 21 and discounted April 5 at 9 1/2%.
A) P45.60
B) P151.35
C) all of these
D) P25.40
E) none of these
  • 26. This check is stamped" no sufficient fund check because there is not enough funds in a depositor's account to cover the check.
A) certified check
B) bouncing check
C) stale dated check
D) overdraft check
E) none of these
  • 27. Interest earning savings deposit account from which a withdrawal is made by means of a check as a______.
A) NOW deposits
B) saving deposits
C) time deposits
D) none of these
E) demand deposits
  • 28. The following are examples of guidelines in accepting check for payment, except;
A) all of these
B) none of these
C) it must be signed by the drawer
D) payee must be the name of the company (corporate account)
E) amount in words must tally with amount in figures
  • 29. These companies are both mutual and stockholder-owned.
A) saving and mortgage banks
B) saving and loan associations
C) none of these
D) mutual saving banks
E) insurance companies
  • 30. The following are example of instruments characteristics except;
A) none of these
B) payable to bearer
C) payable to order
D) payable on demand
E) payable at future time
  • 31. These are promissory notes, check, bills of exchange bank draft and bank deposits.
A) none of these
B) investment credit instrument
C) all of these
D) commercial credit instrument
E) bank credit instrument
  • 32. it is the part of check, that written out using word instead of number.
A) account number
B) pesos box
C) none of these
D) payee line
E) banks fractional number
  • 33. ______funds have a wider range of the types You of assets they may acquire.
A) non -insured
B) neither insured nor insured
C) either insured or non-insured
D) none of these
E) insured
  • 34. What checks that you buy at a bank and take with You you when you in a travel?
A) Traveller's check
B) post dated check
C) crossed check
D) open check
  • 35. Prohibits further negotiation of the check when is in favor of a particular person only.
A) none of these
B) special endorsement
C) bank endorsement
D) Restrictive endorsement
E) qualified endorsement
  • 36. A_____ is any corporation which accepts or creates demand deposits subject to withdrawal by check.
A) saving banks
B) rural banks
C) commercial banks
D) none of these
E) investment banks
  • 37. These banks pay at their profit to savers in interes dividends or retail as a reserve cushion against loss.
A) retail store
B) pension funds
C) none of these
D) pawnshop
E) mutual saving banks
  • 38. It is a written order drawn by a depositor upon a bank to pay on demand.
A) bank draft
B) check
C) bank deposits
D) promissory notes
E) none of these
  • 39. The drawer is a bank directing another bank to pay at a specified time the payee named in the instrument.
A) demand draft
B) none of these
C) sight draft
D) time draft
E) bank draft
  • 40. It is an endorsement that can be cashed by anyone who hold the check.
A) special endorsement
B) restrictive endorsement
C) qualified endorsement
D) none of these
E) blank endorsement
  • 41. They usually do not required collateral but charge higher interest rates
A) credit unions
B) personal loans
C) private individuals
D) retail stores
E) none of these
  • 42. They sell interest-bearing saving deposits to the public and acquire assets largely in the form of urban residential mortgages
A) mutual saving banks
B) none of these
C) insurance companies
D) saving and mortgages banks
E) all of these
  • 43. This is an instrument that has the word "certified or good for payment; stamped on its face.
A) Overdraft check
B) none of these
C) certified check
D) post dated check
E) crossed check
  • 44. These are companies which accept saving and place them in a pool for investments that allows diversification of assets.
A) none of these
B) saving and mortgage loans
C) Bonds and money market funds
D) saving and loans association
E) mutual saving banks
  • 45. This check has date on its face or date of payment encashment that is more than 6 month old.
A) bouncing check
B) stale dated check
C) none of these
D) traveler's check
E) open check
  • 46. unpaid seller" is entitled to any of the following rights, except;
A) right to retain
B) right to resell the goods
C) all of these
D) none of these
E) right to stop the goods in transit
  • 47. It may be done by adding the phrase "without recourse" or word of similar import.

    a

    You
A) blank endorsement
B) qualified endorsement
C) special endorsement
D) restrictive endorsement
E) none of these
  • 48. A 120days note with interest at 7 1/2% was signed on September 23, 2001 and discounted at 7% on October 23,2001. if the proceeds were P9,040 what is the TERM DISCOUNT?
A) 100 DAYS
B) 90 DAYS
C) 50 DAYS
D) NONE OF THESE
E) 21 DAYS
  • 49. These includes sales and personal finance companies which makes loans to individual for the purpose of buying automobiles.
A) insurance companies
B) banks
C) none of these
D) sales finance companies
E) pawnshop
  • 50. This instrument does not required presentation through a payee's banking account.
A) crossed check
B) none of these
C) open check
D) post dated check
  • 51. refers to the owner of account who sign the check.
A) payee
B) none of these
C) drawee
D) payer
E) drawer
  • 52. They represents an indebtedness on the part of the issuing corporation.
A) bonds
B) neither bonds nor stocks
C) stocks
D) both bonds and stocks
E) none of these
  • 53. It is safer to bring along checks for large payment rather than cash.
A) odd amount
B) all of these
C) stop payment
D) none of these
E) safety and convenience
  • 54. it is the part of check, tells about the account owner.
A) account number
B) person information
C) payee line
D) none of these
E) memo line
  • 55. The person to whom the check is written.
A) payer
B) drawee
C) payee
D) drawer
E) none of these
  • 56. They come with right to a fixed dividends which is higher than that from common share and secondary to the interest on all classes of bonds and notes.
A) common stocks
B) neither preferred nor common stocks
C) preferred stocks
D) both preferred and common stocks
E) none of these
  • 57. It is a kind of endorsement that the receiver sign and writes pay to order and allow the check tobe transferred to 3rd party.
A) restrictive endorsement
B) blank endorsement
C) qualified endorsement
D) special endorsement
E) none of these
  • 58. Credit instrument are classified into______.
A) 10
B) 2
C) none of these
D) 6
E) 4
  • 59. Pension funds may be_______.
A) insured
B) Both insured and non-insured
C) neither insured nor insured
D) none of these
E) non-insured
  • 60. Drawer of a draft who has promised to honor the draft as presented by signing it on its face.
A) holder
B) indorsee
C) indorser
D) acceptor
E) none of these
  • 61. It is the signature of payee on the back of negotiable instrument.
A) none of these
B) endorsement
C) signer
D) grantor
E) written
  • 62. Checking account is legal contract between payer and payee.
A) maybe
B) all of these
C) true
D) false
E) none of these
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