16 Questions
What is the main characteristic of a bank according to the given text?
Lending money obtained from deposits
How does a quasi-bank differ from a bank based on the text?
Quasi-banks engage in the relending of deposit substitutes
What is the definition of deposit substitutes according to the given text?
Issuing debt instruments for the borrower's own account
What does the phrase 'obtaining funds from the public' mean according to the text?
Borrowing from 20 or more lenders at any one time
What type of entities engage in the issuance, endorsement, or acceptance of deposit substitutes?
Quasi-banks
What is the purpose of quasi-banks issuing debt instruments according to the given text?
For purchasing receivables and other obligations
What is the act or process of guaranteeing the distribution and sale of securities of any kind issued by another corporation?
Underwriting
Which type of bank has the authority to exercise the powers of an investment house as provided in existing laws?
Universal banks
What is the purpose of a thrift bank as governed by Republic Act No. 7906?
Providing credit facilities to farmers and merchants
Which entity is authorized by the Bangko Sentral to perform universal or commercial banking functions and also has the authority to engage in quasi-banking functions?
Universal or commercial banking entities
What does 'securities' refer to in the context of investment companies and underwriting?
Ownership interests
Which type of bank is established for the purpose of providing adequate credit facilities to farmers and merchants?
Savings/mortgage banks
According to the text, what are the general powers incident to commercial banks?
Accepting drafts and issuing letters of credit
What is the minimum number of persons from whom funds are obtained for an entity to be considered a bank or quasi-bank?
20
Which Act governs rural banks?
Rural Banks Act
Which type of bank has the authority to invest in non-allied enterprises as provided in this Act?
Universal banks
Test your knowledge of banking-related laws and entities engaged in lending and borrowing of funds. Learn about the distinctions between banks and quasi-banks based on their activities and sources of funds.
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