Universal Banking

Question 1

What does universal banking provide?

a. Only investment banking services
b. A wide variety of financial services
c. Only retail banking services
d. Only deposit services

Answer 1

b. A wide variety of financial services

Question 2

Which of the following is NOT included in the definition of universal banking?

a. Insurance
b. Development banking
c. Wholesale banking
d. Farming loans

Answer 2

d. Farming loans

Question 3

Universal banks are:

a. Required to offer all services
b. Free to select and offer various services
c. Limited to retail banking only
d. Government-owned

Answer 3

b. Free to select and offer various services

Question 4

Which is the minimum capital requirement for universal banks in the Philippines?

a. P10 billion
b. P15 billion
c. P20 billion
d. P25 billion

Answer 4

c. P20 billion

Question 5

Which is the minimum capital requirement for commercial banks in the Philippines?

a. P10 billion
b. P15 billion
c. P20 billion
d. P25 billion

Answer 5

b. P15 billion

Question 6

All universal banks are:

a. Thrift banks
b. Rural banks
c. Commercial banks
d. Cooperative banks

Answer 6

c. Commercial banks

Question 7

Which of the following is NOT a product offered by a universal bank?

a. Factoring
b. Merchant banking
c. Crop insurance
d. Investment advisory

Answer 7

c. Crop insurance

Question 8

Which bank is an example of a government bank in the Philippines?

a. BDO
b. Metrobank
c. Al Amanah Islamic Investment Bank
d. BPI

Answer 8

c. Al Amanah Islamic Investment Bank

Question 9

What type of bank primarily serves the general public and not companies?

a. Investment bank
b. Retail bank
c. Wholesale bank
d. Central bank

Answer 9

b. Retail bank

Question 10

Which of the following is a function of wholesale banking?

a. Issuing debit cards to individuals
b. Disbursing pensions to government entities
c. Providing ATM services
d. Selling mutual funds to retail customers

Answer 10

b. Disbursing pensions to government entities

Question 11

[front]
Investment banking includes all the following EXCEPT:

a. Underwriting IPOs
b. Selling groceries
c. Facilitating high-value investments
d. Merging or acquiring companies

Answer 11

[back]
b. Selling groceries

Question 12

[front]
What does an underwriter do in investment banking?

a. Designs banking apps
b. Sells insurance door-to-door
c. Takes financial risk in return for fees
d. Issues microloans

Answer 12

[back]
c. Takes financial risk in return for fees

Question 13

[front]
A universal bank may act as:

a. A central bank
b. A pawnshop
c. A commercial and investment bank
d. A school bank

Answer 13

[back]
c. A commercial and investment bank

Question 14

[front]
Commercial banks typically provide:

a. Large-scale investment portfolios
b. Mergers and acquisitions
c. Basic financial services to customers
d. Government regulatory functions

Answer 14

[back]
c. Basic financial services to customers

Question 15

[front]
What is the goal of universal banking in utilizing resources?

a. To lower taxes
b. To reduce loan interest
c. Optimum utilization of all resources
d. To eliminate financial services

Answer 15

[back]
c. Optimum utilization of all resources

Question 16

[front]
Which is a key advantage of universal banking?

a. It creates more government jobs
b. It requires fewer employees
c. It gains investors’ faith
d. It reduces internet usage

Answer 16

[back]
c. It gains investors’ faith

Question 17

[front]
A potential disadvantage of universal banking is:

a. Too many customers
b. Monopoly power
c. Frequent hacking
d. Lack of ATM machines

Answer 17

[back]
b. Monopoly power

Question 18

[front]
Which of the following is true about retail banking?

a. It focuses on large institutions
b. It does not offer credit cards
c. It is also called consumer banking
d. It excludes internet banking

Answer 18

[back]
c. It is also called consumer banking

Question 19

[front]
Universal banking allows banks to:

a. Stick to one type of service
b. Choose which services to offer
c. Serve only rural areas
d. Avoid compliance

Answer 19

[back]
b. Choose which services to offer

Question 20

[front]
Which of these is NOT a universal banking service?

a. Auto loans
b. Credit cards
c. Grocery delivery
d. Mutual funds

Answer 20

[back]
c. Grocery delivery

Question 21

[front]
Universal banks differ from commercial banks in that:

a. They are non-profit
b. They are only online
c. They combine many types of banking
d. They are only available in the provinces

Answer 21

[back]
c. They combine many types of banking

Question 22

[front]
Which bank listed below is a private domestic bank in the Philippines?

a. DBP
b. Land Bank
c. Al Amanah
d. BPI

Answer 22

[back]
d. BPI

Question 23

[front]
Which best describes the role of commercial banking under universal banking?

a. Managing mutual funds
b. Providing pensions
c. Fulfilling basic financial needs of customers
d. Facilitating takeovers

Answer 23

[back]
c. Fulfilling basic financial needs of customers

Question 24

[front]
Investment banks under universal banking:

a. Only manage savings accounts
b. Deal with low-risk investments only
c. Accept deposits and invest in various portfolios
d. Serve only government employees

Answer 24

[back]
c. Accept deposits and invest in various portfolios

Question 25

[front] What makes universal banks different in terms of regulation? a. They follow only international rules b. They have no regulation c. Their services vary, so regulations also vary d. They are regulated by schools

Answer 25

[back] c. Their services vary, so regulations also vary