Podcast
Questions and Answers
A pawnshop serves as a middleman between individuals looking to borrow money and individuals with excess capital who are seeking to invest.
A pawnshop serves as a middleman between individuals looking to borrow money and individuals with excess capital who are seeking to invest.
False (B)
In a cooperative, each member's profit share is directly proportional to their capital contribution.
In a cooperative, each member's profit share is directly proportional to their capital contribution.
True (A)
The GSIS primarily serves as a financial institution solely focused on managing pension funds for government employees.
The GSIS primarily serves as a financial institution solely focused on managing pension funds for government employees.
False (B)
The capital contributed by members of a cooperative is used to fund loans and other operating expenses of the cooperative.
The capital contributed by members of a cooperative is used to fund loans and other operating expenses of the cooperative.
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A cooperative can be considered a fully legitimate and regulated entity without registration with the Cooperative Development Authority (CDA).
A cooperative can be considered a fully legitimate and regulated entity without registration with the Cooperative Development Authority (CDA).
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Study Notes
Cooperatives
- Cooperatives are associations of members aiming for common social or economic goals.
- Legitimate cooperatives must be registered with the Cooperative Development Authority (CDA).
- Members contribute capital and share profits, liabilities, and benefits.
- Cooperative capital is loaned to members.
- Profits are distributed among members based on their capital contributions.
- Member income varies based on individual capital contributions.
- Cooperatives differ significantly from banks.
Pawnshops
- Pawnshops were created to provide loans to individuals unable to access bank services.
- Individuals exchange valuable assets (collateral) for cash, including interest.
Pension Funds
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Government Service Insurance System (GSIS):
- Provides life insurance to government employees, local government workers, government-owned/controlled employees, and public school teachers.
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Description
This quiz covers the fundamental aspects of cooperatives, pawnshops, and pension funds, including their purposes, structures, and the roles they play in the economy. Explore how cooperatives operate through member contributions and profit sharing, how pawnshops provide loans against collateral, and the services offered by pension funds like the GSIS.
