10 Questions
What is the main difference between banking and non-banking financial institutions?
Banking institutions require a license to operate, while non-banking institutions do not.
Which of the following is a similarity between banking and non-banking financial institutions?
Both are regulated by the Bangko Sentral ng Pilipinas.
What is the main source of funds for depository banking institutions?
Deposits from customers
Which of the following is NOT an example of a non-depository financial institution?
Commercial bank
Which of the following is not an obligation of entrepreneurs towards their creditors?
Providing accurate and complete information when applying for credit.
What is the primary function of microloan organizations?
To offer small credits or loans to individuals or businesses
What is the primary purpose of insurance firms?
To provide a contingent promise of economic protection in case of loss
What is the primary purpose of entrepreneurs using borrowed funds?
To improve cash flow.
Which type of insurance typically covers unexpected losses to assets?
General insurance
What is the consequence of entrepreneurs failing to make timely payments on their debt?
They will be subject to penalties, increased interest rates, or damage to their creditworthiness.
Test your knowledge on the types of banking institutions, including depository and non-depository institutions. Learn about the main sources of funds for each type and their role in the financial sector.
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