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finap6 - Quiz
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) Stock
C) neither bonds and stocks
D) both bonds and stocks
E) none of these
  • 2. Drawee demand action from the drawer.
A) false
B) maybe
C) true
D) all of these
  • 3. These are mutual institution whose members have some common bonds, such as employment in the same company.
A) pawnshops
B) banks
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) none of these
B) true
C) neither true nor false
D) false
E) both true and false
  • 5. A personal Cheque is one which_________
A) none of these
B) One which is belongs to a person alone
C) The drawee gives instructions to the drawer to pay the payee a certain amount
D) The payee gives the drawee instructions to pay the drawer a certain amount
E) the drawer gives the drawee instructions to pay the payee a certain amount
  • 6. How many kinds of check?
A) 9
B) 16
C) 12
D) none of these
E) 10
  • 7. The depositor can be charge with crime of estafa for drawing a check without any deposits.
A) open check
B) commercial credit instrument
C) none of these
D) bouncing check
E) post dated check
  • 8. The sources of credit are classified into
A) none of these
B) 8
C) 15
D) 18
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) P35.50
B) NONE OF THESE
C) P44.27
D) P125.50
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) NONE OF THESE
B) P31,765
C) P10,710
D) P12,453.50
E) ALL OF THESE
  • 11. It is the party entitled to receive payment.
A) drawer
B) none of these
C) drawee
D) payee
E) payor
  • 12. Sometimes called building and loans associations which sell financial services to the public and invest the fund acquired.
A) saving and mortgage banks
B) sales finance companies
C) saving and loans associations
D) none of these
E) all of these
  • 13. How many kinds of stock?
A) 4
B) 2
C) 6
D) 5
  • 14. Are those earn income in the form of dividends or interest such as stocks and bonds.
A) all of these
B) commercial credit instruments
C) investment credit instrument
D) none of these
  • 15. It is an endorsement that passes title to a negotiable instrument with certain restriction.
A) blank endorsement
B) special endorsement
C) none of these
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) retail stores
B) private individuals
C) none of these
D) personal loans
E) credit unions
  • 17. Endorsement are classified into______.
A) 4
B) 5
C) none of these
D) 6
E) 8
  • 18. A person to whom a negotiable instrument is transferred by indorsement
A) indorser
B) none of these
C) holder
D) indorsee
E) acceptor
  • 19. This is characterized by two parallel lines on the upper left-hand corner
A) crossed check
B) open check
C) certified check
D) none of these
E) post dated 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) neither bonds nor stocks
B) bonds
C) stocks
D) none of these
E) both bonds and stocks
  • 21. Possesses a negotiable instrument issued or indorsed to that person order or bearer.
A) holder
B) indorsee
C) acceptor
D) indorser
E) none of these
  • 22. It is the financial institution that pays check presented for payment.
A) drawer
B) payee
C) drawee
D) payer
E) none of these
  • 23. A 5 months note with a face value at P7,500 bears interest at 8%. Find the Maturity Date.
A) P1,500
B) P7,750
C) NONE OF THESE
D) ALL OF THESE
E) P2.456.00
  • 24. It is payable on demand that is as soon as the importer's receive it.
A) none of these
B) bank draft
C) time draft
D) demand draft
E) sight 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) all of these
B) none of these
C) P151.35
D) P25.40
E) P45.60
  • 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) overdraft check
B) certified check
C) stale dated check
D) none of these
E) bouncing check
  • 27. Interest earning savings deposit account from which a withdrawal is made by means of a check as a______.
A) NOW deposits
B) time deposits
C) demand deposits
D) saving deposits
E) none of these
  • 28. The following are examples of guidelines in accepting check for payment, except;
A) none of these
B) it must be signed by the drawer
C) payee must be the name of the company (corporate account)
D) amount in words must tally with amount in figures
E) all of these
  • 29. These companies are both mutual and stockholder-owned.
A) none of these
B) insurance companies
C) saving and mortgage banks
D) saving and loan associations
E) mutual saving banks
  • 30. The following are example of instruments characteristics except;
A) payable at future time
B) payable on demand
C) none of these
D) payable to order
E) payable to bearer
  • 31. These are promissory notes, check, bills of exchange bank draft and bank deposits.
A) none of these
B) commercial credit instrument
C) bank credit instrument
D) investment credit instrument
E) all of these
  • 32. it is the part of check, that written out using word instead of number.
A) account number
B) pesos box
C) payee line
D) banks fractional number
E) none of these
  • 33. ______funds have a wider range of the types You of assets they may acquire.
A) neither insured nor insured
B) either insured or non-insured
C) non -insured
D) insured
E) none of these
  • 34. What checks that you buy at a bank and take with You you when you in a travel?
A) crossed check
B) post dated check
C) open check
D) Traveller's check
  • 35. Prohibits further negotiation of the check when is in favor of a particular person only.
A) none of these
B) Restrictive endorsement
C) qualified endorsement
D) bank endorsement
E) special endorsement
  • 36. A_____ is any corporation which accepts or creates demand deposits subject to withdrawal by check.
A) investment banks
B) none of these
C) saving banks
D) rural banks
E) commercial 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) pawnshop
D) mutual saving banks
E) none of these
  • 38. It is a written order drawn by a depositor upon a bank to pay on demand.
A) bank draft
B) promissory notes
C) bank deposits
D) none of these
E) check
  • 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) sight draft
C) none of these
D) bank draft
E) time draft
  • 40. It is an endorsement that can be cashed by anyone who hold the check.
A) qualified endorsement
B) blank endorsement
C) special endorsement
D) none of these
E) restrictive endorsement
  • 41. They usually do not required collateral but charge higher interest rates
A) credit unions
B) retail stores
C) private individuals
D) personal loans
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) insurance companies
B) none of these
C) all of these
D) mutual saving banks
E) saving and mortgages banks
  • 43. This is an instrument that has the word "certified or good for payment; stamped on its face.
A) none of these
B) Overdraft check
C) certified check
D) crossed check
E) post dated check
  • 44. These are companies which accept saving and place them in a pool for investments that allows diversification of assets.
A) saving and loans association
B) mutual saving banks
C) none of these
D) saving and mortgage loans
E) Bonds and money market funds
  • 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) open check
E) traveler's check
  • 46. unpaid seller" is entitled to any of the following rights, except;
A) none of these
B) all of these
C) right to resell the goods
D) right to stop the goods in transit
E) right to retain
  • 47. It may be done by adding the phrase "without recourse" or word of similar import.

    a

    You
A) special endorsement
B) restrictive endorsement
C) blank endorsement
D) qualified 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) 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) pawnshop
B) sales finance companies
C) none of these
D) banks
E) insurance companies
  • 50. This instrument does not required presentation through a payee's banking account.
A) crossed check
B) open check
C) post dated check
D) none of these
  • 51. refers to the owner of account who sign the check.
A) drawee
B) payer
C) drawer
D) payee
E) none of these
  • 52. They represents an indebtedness on the part of the issuing corporation.
A) stocks
B) bonds
C) neither bonds nor stocks
D) none of these
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) none of these
E) odd amount
  • 54. it is the part of check, tells about the account owner.
A) account number
B) payee line
C) person information
D) none of these
E) memo line
  • 55. The person to whom the check is written.
A) drawer
B) payee
C) none of these
D) drawee
E) payer
  • 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) neither preferred nor common stocks
B) none of these
C) preferred stocks
D) common stocks
E) both preferred and common stocks
  • 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) special endorsement
B) restrictive endorsement
C) qualified endorsement
D) none of these
E) blank endorsement
  • 58. Credit instrument are classified into______.
A) 4
B) 2
C) 6
D) none of these
E) 10
  • 59. Pension funds may be_______.
A) neither insured nor insured
B) Both insured and non-insured
C) 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) indorser
B) holder
C) acceptor
D) none of these
E) indorsee
  • 61. It is the signature of payee on the back of negotiable instrument.
A) none of these
B) grantor
C) signer
D) endorsement
E) written
  • 62. Checking account is legal contract between payer and payee.
A) maybe
B) false
C) none of these
D) true
E) all of these
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