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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) bonds
B) neither bonds and stocks
C) both bonds and stocks
D) Stock
E) none of these
  • 2. Drawee demand action from the drawer.
A) false
B) all of these
C) true
D) maybe
  • 3. These are mutual institution whose members have some common bonds, such as employment in the same company.
A) pawnshops
B) credit unions
C) retail stores
D) banks
E) none of these
  • 4. Banks Deposits" express a promise to pay a definite sum of money at a future date
A) none of these
B) true
C) both true and false
D) false
E) neither true nor false
  • 5. A personal Cheque is one which_________
A) none of these
B) The drawee gives instructions to the drawer to pay the payee a certain amount
C) The payee gives the drawee instructions to pay the drawer a certain amount
D) the drawer gives the drawee instructions to pay the payee a certain amount
E) One which is belongs to a person alone
  • 6. How many kinds of check?
A) 16
B) 12
C) none of these
D) 9
E) 10
  • 7. The depositor can be charge with crime of estafa for drawing a check without any deposits.
A) none of these
B) post dated check
C) bouncing check
D) open check
E) commercial credit instrument
  • 8. The sources of credit are classified into
A) 8
B) none of these
C) 18
D) 15
E) 10
  • 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) P125.50
B) NONE OF THESE
C) P35.50
D) P44.27
E) P50.00
  • 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) P10,710
C) P12,453.50
D) NONE OF THESE
E) ALL OF THESE
  • 11. It is the party entitled to receive payment.
A) drawee
B) payee
C) drawer
D) payor
E) none of these
  • 12. Sometimes called building and loans associations which sell financial services to the public and invest the fund acquired.
A) all of these
B) none of these
C) sales finance companies
D) saving and mortgage banks
E) saving and loans associations
  • 13. How many kinds of stock?
A) 6
B) 4
C) 2
D) 5
  • 14. Are those earn income in the form of dividends or interest such as stocks and bonds.
A) all of these
B) none of these
C) commercial credit instruments
D) investment credit instrument
  • 15. It is an endorsement that passes title to a negotiable instrument with certain restriction.
A) none of these
B) blank endorsement
C) qualified endorsement
D) restrictive endorsement
E) special 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) none of these
B) personal loans
C) credit unions
D) retail stores
E) private individuals
  • 17. Endorsement are classified into______.
A) 6
B) 5
C) none of these
D) 4
E) 8
  • 18. A person to whom a negotiable instrument is transferred by indorsement
A) indorser
B) acceptor
C) holder
D) indorsee
E) none of these
  • 19. This is characterized by two parallel lines on the upper left-hand corner
A) none of these
B) crossed check
C) certified check
D) post dated check
E) open check
  • 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) both bonds and stocks
B) bonds
C) stocks
D) neither bonds nor stocks
E) none of these
  • 21. Possesses a negotiable instrument issued or indorsed to that person order or bearer.
A) none of these
B) acceptor
C) indorser
D) holder
E) indorsee
  • 22. It is the financial institution that pays check presented for payment.
A) payer
B) none of these
C) drawee
D) drawer
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) ALL OF THESE
D) P2.456.00
E) P7,750
  • 24. It is payable on demand that is as soon as the importer's receive it.
A) sight draft
B) time draft
C) bank draft
D) demand draft
E) none of these
  • 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) P151.35
B) none of these
C) P25.40
D) P45.60
E) all 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) none of these
C) overdraft check
D) bouncing check
E) stale dated check
  • 27. Interest earning savings deposit account from which a withdrawal is made by means of a check as a______.
A) demand deposits
B) saving deposits
C) time deposits
D) NOW deposits
E) none of these
  • 28. The following are examples of guidelines in accepting check for payment, except;
A) none of these
B) amount in words must tally with amount in figures
C) payee must be the name of the company (corporate account)
D) it must be signed by the drawer
E) all of these
  • 29. These companies are both mutual and stockholder-owned.
A) mutual saving banks
B) insurance companies
C) saving and loan associations
D) saving and mortgage banks
E) none of these
  • 30. The following are example of instruments characteristics except;
A) none of these
B) payable to order
C) payable at future time
D) payable on demand
E) payable to bearer
  • 31. These are promissory notes, check, bills of exchange bank draft and bank deposits.
A) bank credit instrument
B) commercial credit instrument
C) all of these
D) investment credit instrument
E) none of these
  • 32. it is the part of check, that written out using word instead of number.
A) account number
B) payee line
C) banks fractional number
D) pesos box
E) none of these
  • 33. ______funds have a wider range of the types You of assets they may acquire.
A) either insured or non-insured
B) insured
C) none of these
D) non -insured
E) neither insured nor insured
  • 34. What checks that you buy at a bank and take with You you when you in a travel?
A) crossed check
B) Traveller's check
C) post dated check
D) open check
  • 35. Prohibits further negotiation of the check when is in favor of a particular person only.
A) bank endorsement
B) qualified endorsement
C) none of these
D) Restrictive endorsement
E) special endorsement
  • 36. A_____ is any corporation which accepts or creates demand deposits subject to withdrawal by check.
A) none of these
B) rural banks
C) investment banks
D) commercial banks
E) saving 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) mutual saving banks
D) pawnshop
E) none of these
  • 38. It is a written order drawn by a depositor upon a bank to pay on demand.
A) promissory notes
B) check
C) bank deposits
D) bank draft
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) time draft
B) none of these
C) sight draft
D) bank draft
E) demand draft
  • 40. It is an endorsement that can be cashed by anyone who hold the check.
A) qualified endorsement
B) none of these
C) blank endorsement
D) restrictive endorsement
E) special endorsement
  • 41. They usually do not required collateral but charge higher interest rates
A) private individuals
B) none of these
C) retail stores
D) credit unions
E) personal loans
  • 42. They sell interest-bearing saving deposits to the public and acquire assets largely in the form of urban residential mortgages
A) saving and mortgages banks
B) all of these
C) mutual saving banks
D) none of these
E) insurance companies
  • 43. This is an instrument that has the word "certified or good for payment; stamped on its face.
A) certified check
B) crossed check
C) Overdraft check
D) post dated check
E) none of these
  • 44. These are companies which accept saving and place them in a pool for investments that allows diversification of assets.
A) mutual saving banks
B) Bonds and money market funds
C) none of these
D) saving and mortgage loans
E) saving and loans association
  • 45. This check has date on its face or date of payment encashment that is more than 6 month old.
A) stale dated check
B) open check
C) bouncing check
D) traveler's check
E) none of these
  • 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) special endorsement
C) qualified 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) 50 DAYS
B) 90 DAYS
C) 100 DAYS
D) 21 DAYS
E) NONE OF THESE
  • 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) none of these
B) open check
C) post dated check
D) crossed check
  • 51. refers to the owner of account who sign the check.
A) drawee
B) payee
C) none of these
D) payer
E) drawer
  • 52. They represents an indebtedness on the part of the issuing corporation.
A) bonds
B) none of these
C) neither bonds nor stocks
D) stocks
E) both bonds and stocks
  • 53. It is safer to bring along checks for large payment rather than cash.
A) all of these
B) safety and convenience
C) stop payment
D) odd amount
E) none of these
  • 54. it is the part of check, tells about the account owner.
A) none of these
B) person information
C) account number
D) payee line
E) memo line
  • 55. The person to whom the check is written.
A) drawer
B) payer
C) drawee
D) payee
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) preferred stocks
B) common stocks
C) both preferred and common stocks
D) neither preferred nor 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) special endorsement
C) qualified endorsement
D) none of these
E) blank endorsement
  • 58. Credit instrument are classified into______.
A) 2
B) 6
C) 10
D) none of these
E) 4
  • 59. Pension funds may be_______.
A) neither insured nor insured
B) none of these
C) insured
D) non-insured
E) Both insured and non-insured
  • 60. Drawer of a draft who has promised to honor the draft as presented by signing it on its face.
A) none of these
B) acceptor
C) indorser
D) holder
E) indorsee
  • 61. It is the signature of payee on the back of negotiable instrument.
A) none of these
B) signer
C) endorsement
D) written
E) grantor
  • 62. Checking account is legal contract between payer and payee.
A) false
B) all of these
C) none of these
D) true
E) maybe
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