EXAM SME Loans

1. Which is TRUE about MSMEs in the Philippines?

• a. They contribute 75% of the country's exports revenue
• b. The employ less than 50% of the country's working population
• c. They make up 99.58% of the registered enterprises in the country
• d. None of the above

2. Which industry constitutes 50% of MSMEs in the Philippines?

• a. Agriculture, Forestry, and Fishing
• b. Wholesale and Retail Trade
• c. Tourism, Accommodation, and Food Service Activities
• d. Manufacturing

3. Mr. Villarico is in the process of adding 2 more buildings to his poultry farm to accommodate 12,000 more birds. What product will you offer him?

• a. SME Term Loan
• b. SME Business Credit Line
• c. SME Credit Line
• d. SME Standby Credit Line

4.The following are reasons why many SMEs don't have access to Credit except:

• a. Lack of acceptable collateral
• b. Ownership of business
• c. Lack of past creditors
• d. No Bank Accounts

5. SME Standby CredIt Line may be used for foreign trade engagements.

• a. True
• b. False
• c. Case-to-case

6. The following are the allowable loan purpose for SME Loan except:

• a. Construction of 3-door Apartment
• b. Purchase of Business Owner's Personal Car
• c. Acquisition of Heavy Equipment
• d. Loan Take-out

7. What is the maximum term for SME Term Loan?

• a. 7 years from date of initial availment
• b. 7 years from 100% release of proceeds
• c. 10 years from date of initial availment
• d. 10 years from 100% release of proceeds

8. How much is the loanable value for SME Loans?

• a. Up to 80% for REM, 90% if Peso TD and 70% if Dollar TD
• b. Up to 80% for REM, 90% if Peso TD and 80% if Dollar TD
• c. Up to 60% for REM, 90% if Peso TD and 80% if Dollar TD
• d. None of the above

9. The following are some of the functions that Business Associations serve except:

• a. Market Research
• b. Free Advertising Materials
• c. Cross-sector Networking
• d. Lobbying

10.The following are competencies required of an SME Account Officer, except:

• a. Financial Analysis
• b. Cash Operations
• c. Problem Solving
• d. Systems Knowledge