Financial Allied Undertakings in Foreign Exchange
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Questions and Answers

What is the authority given to the Bangko Sentral regarding electronic transactions?

  • To fully regulate the use of electronic devices and processes (correct)
  • To regulate only the delivery of services and products to customers
  • To only regulate computers but not other electronic devices
  • To monitor but not regulate electronic transactions
  • What is the purpose of submitting financial statements to the Bangko Sentral?

  • To compare with other financial institutions
  • To hide the actual financial condition of the institution
  • To show the projected financial growth of the institution
  • To show the actual financial condition of the institution (correct)
  • How often must a bank, quasi-bank, or trust entity publish a statement of its financial condition?

  • At least once a year
  • At least once a month
  • At least once every quarter (correct)
  • At least once every six months
  • What is the alternative to publishing financial statements in a newspaper of general circulation?

    <p>Posting in public places determined by the Monetary Board</p> Signup and view all the answers

    What is required for the Monetary Board to allow deferring the publication of a statement of financial condition?

    <p>A vote of at least five members</p> Signup and view all the answers

    Who can apply to defer the publication of a statement of financial condition?

    <p>The bank, quasi-bank, or trust entity itself</p> Signup and view all the answers

    What is the purpose of submitting financial statements to the Bangko Sentral?

    <p>To show the actual financial condition of the institution</p> Signup and view all the answers

    What is the language requirement for publishing financial statements?

    <p>In English or Filipino</p> Signup and view all the answers

    Where must financial statements be published?

    <p>In a newspaper of general circulation in the city or province</p> Signup and view all the answers

    What is the purpose of the Bangko Sentral regulating electronic transactions?

    <p>To regulate the use of electronic devices and processes</p> Signup and view all the answers

    Study Notes

    Universal Banks (UBs)

    • Can invest in insurance companies and holding companies, provided that the investment of such holding company are confined to the equities of allied undertakings and/or non-allied undertakings of the UB's allowed under BSP regulations.

    Departmentalization in Banking

    • Departments in a bank may include:
      • Cash Department: handles deposit function, new accounts, signature controls, safe deposit boxes, and armored car services.
      • Loan and Discount Department: handles loans, bank credit investigation, re-discounting, statistics, loan releases, renewals, and collections.
      • Trust Department: handles fiduciary activities, legal work, and lawyer's tasks.
      • Foreign Department: handles international exchange transactions, applications for letters of credit, buying and selling foreign exchange, and similar transactions.
      • Accounting Department: handles all bank transactions, bookkeeping, proof sheets, financial statements, and other accounting procedures.

    Bank Assets and Liabilities

    • Other Cash Resources:
      • Exchanges for the clearing house: checks deposited at or cashed by the bank preparing the statement during the course of the day, drawn on banks within the city that are members of the clearing house.
      • Collections in transit: "out-of-town" checks or drafts drawn on banks outside the city, credited to the depositor's account pending receipt of the proceeds.
      • Other Cash items: bond coupons, claims against non-member banks.
    • Due from Bank: deposits carried with other banks, usually in the form of demand deposit.
    • Balances with Foreign Banks: deposits or funds held abroad, mainly to fill foreign exchange needs.
    • Loans and Discounts: promissory notes and bills of exchange held by the bank, evidencing debt or securing a debt.

    Regulatory Framework

    • Authority to Regulate Electronic Transactions: Bangko Sentral has the authority to regulate electronic transactions, devices, and processes used by banks, quasi-banks, or trust entities.
    • Financial Statements: banks, quasi-banks, or trust entities must submit financial statements to the Bangko Sentral, showing the actual financial condition of the institution.
    • Publication of Financial Statements: banks, quasi-banks, or trust entities must publish a statement of their financial condition at least once every quarter in a newspaper of general circulation or post in public places.

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    Description

    This quiz covers financial allied undertakings in foreign exchange, including insurance companies and holding companies. It is specifically designed for students of Laguna State Polytechnic University, Republic of the Philippines.

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