Understanding The PDIC Charter and Deposit Insurance Coverage

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What are the primary functions of the PDIC as stated in the text?

Providing loans to individuals

Issuing corporate bonds

Regulating the stock market

Insuring deposits with covered institutions (correct)

According to the PDIC law, what is considered a deposit?

Unpaid balance of money received by a bank in the usual course of business (correct)

Credit card debt owed to a bank

Amounts owed to a bank for mortgage loans

Unpaid balance of money received by a bank outside the Philippines

Which of the following obligations of a bank is NOT considered a deposit under the PDIC law?

Savings account balance

Loan taken from another financial institution (correct)

Checking account balance payable at an office outside the Philippines

Time deposit amount

In the context of deposit insurance coverage, what is excluded from being considered a deposit according to the PDIC law?

Foreign currency deposits Signup and view all the answers

What does the PDIC law require regarding deposit liabilities of a bank?

They should be determined and prescribed by the board of directors Signup and view all the answers

What evidence is required under the PDIC law to prove a deposit?

Certificate of Deposit issued by BSP rules Signup and view all the answers

What happens to any excess in the insured amount of P500,000.00?

It is a claim against the assets of the closed bank. Signup and view all the answers

What obligation arises out of the Truth in Lending Act?

Disclosing finance charges clearly to credit recipients. Signup and view all the answers

In what situation does the six-month period for claims not apply under PDIC regulations?

When a claim requires fact and law resolution by another entity. Signup and view all the answers

What does the Truth in Lending Act aim to prevent?

Uninformed use of credit detrimental to national economy. Signup and view all the answers

What is the consequence of an uninsured deposit obligation?

Claim against the closed bank's assets. Signup and view all the answers

Under PDIC regulations, what should a creditor provide prior to extending credit according to the Truth in Lending Act?

A statement disclosing finance charges clearly in writing. Signup and view all the answers

What type of accounts or transactions are excluded from deposit insurance coverage under the PDIC law?

All of the above Signup and view all the answers

Which of the following is NOT an excluded deposit under the PDIC law?

Foreign currency deposits Signup and view all the answers

According to the PDIC law, which deposits may be insured if approved by the Board of Directors?

Only deposits payable at branches outside the Philippines Signup and view all the answers

Which deposits are considered excluded from PDIC insurance due to their association with unsafe banking practices?

Deposits constituting unsafe banking practices Signup and view all the answers

Under the PDIC law, what type of deposit liabilities are considered for insurance coverage if approved by the Board of Directors?

Deposit obligations payable at specified branches outside the Philippines Signup and view all the answers

Which of the following is NOT a reason for exclusion from deposit insurance coverage under the PDIC law?

'Trust accounts' status as defined under Republic Act No. 9160 Signup and view all the answers

Understanding The PDIC Charter and Deposit Insurance Coverage

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